extraordinary circumstances would be permitted (§ 190.16). The previously proposed criteria for recomputation of the expected family contribution were the death of a parent or spouse, the loss of employment of a parent or spouse, or the inability to pursue normal incomeproducing activities by reason of disability or natural disaster. As a result of experience gained, it has become evident that the financial circumstances of a family unit are severely affected as a result of the separation or divorce of the applicant's parents when the applicant is a dependent student, as well as separation or divorce of the applicant himself when the applicant is an independent student. For this reason, the regulations provide that, starting in the 1974-75 academic year, an applicant may submit a new application substituting the tax year subsequent to the original base year as the new base year if the applicant or his parents have become separated or divorced since the original application was submitted. A dependent student would include information which applies only to that parent who provides the greater amount of that student's support. Similarly, the independent applicant would include only his own income and asset information. (Cases in which the separation or divorce occurs prior to the student's filing an application are dealt with in Subpart C, 190.31 (a) (2) for dependent students and in Subpart D, § 190.42(a) (2) for independent students.)

Section 190.3 of the regulations provides that a student applying for the 1974-75 academic year will be eligible if he or she was not enrolled as a regular student at any institution of higher education prior to April 1, 1973, rather than July 1, 1973. This change is required by statute and will permit students who began their school year between April 1 and July 1, 1973 to receive Basic Grants in the 1974-75 academic year.

It should be noted that the official notification to the student of his expected family contribution, which has previously been called the "Family Contribution Analysis Report", is now named the "Student Eligibility Report." Consequently, all references to the "Family Contribution Analysis Report" in Subpart B, § 190.14 and § 190.15 and Subpart F,190.61 have been changed to read "Student Eligibility Report."

The proposed regulations, as published, also contained some technical inaccuracies and omissions. The inaccuracies and omissions have been corrected in this publication of the regulations. There has also been some rearrangement of text to give greater clarity. In addition, for purposes of clarity, § 190.72, § 190.82, and § 190.84 of Subpart G, which was previously published as a notice of proposed rule making in the FEDERAL Register on March 15, 1974 (39 FR 9995), have been removed from Subpart G and incorporated in Subpart A as § 190.2(1), § 190.4,

and § 190.5, respectively.

It is the intention of the Office of Education to issue necessary amendments to these regulations as additional experience is gained in the operation of the program. In this context, the Office of Education will be pleased to receive any suggestions for possible future amendments. It should be further noted that Subparts C and D of the regulations covering the procedures for determination of expected family contribution for dependent and independent students were previously published as final regulations in the FEDERAL REGISTER on July 2, 1974 (39 FR 24472). Subpart G which Ideals with the Administration of Grant Payments, previously published as a notice of proposed rulemaking in the FEDERAL REGISTER on March 15, 1974 (39 FR 9995), is expected to be published as final regulations in the near future.

In light of the foregoing, Part 190 of Title 45 of the Code of Federal Regulations is amended by the addition of Subparts A, B, E, and F of Part 190 as set forth below.

Effective date: Pursuant to section 431(d) of the General Education Provisions Act, as amended, (20 U.S.C. 1232 (d)) these regulations have been transmitted to the Congress concurrently with the publication of this document in the FEDERAL REGISTER. That section provides that regulations subject thereto shall become effective on the forty-fifth day following the date of such transmission, subject to the provisions therein concerning Congressional action and adjournment. A subsequent notice will be published in the FEDERAL REGISTER stating the specific date on which these regulations have become effective.

Dated: September 20, 1974.

T. H. BELL,
U.S. Commissioner of Education.
Approved: October 30, 1974.

Subpart E-Costs of Attendance

190.51 Costs of attendance.

Subpart F-Determination of Basic Educational Opportunity Grant Awards

190.61 Submission of "Student Eligibility Report" for purposes of basic educational opportunity grant cal-. culation.

190.62 Calculation of basic educational opportunity grant awards at fullfunding.

190.63 Calculation of basic educational opportunity grant awards at lessthan-full-funding

190.64 Calculation of basic educational opportunity grant awards for less than a full school year.

190.65 Calculation of basic educational opportunity grant awards for 8 school year which is longer than 12 months in length.

190.66 Calculation of basic educational opportunity grant awards for a school year which spans 2 aca

demic years.

(e) "Eligible program" means a program of training at an institution of higher education which (1) leads to a degree or certificate, (2) is of at least six months duration, and (3) admits as regular students only those persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate.

(20 U.S.C. 1141(a) (1); 20 U.S.C. 1088 (b) (3))

(f) "Full-time student" means a student who is carrying a full-time academic work load, other than by correspondence, measured in terms of (1) the tuition and fees customarily charged for full-time study by the institution and (2) the course work or other required activities as determined by the institution in which the student is enrolled; provided, however, that such course work and activities amount to a minimum of (1) 12 semester hours or 12 quarter hours per academic term for institutions utilizing semesters, trimesters, or quarter hour systems; (ii) 24 semester hours or 36 quarter hours per school year for institutions which measure progress in terms of such credit hours but which do not utilize semester, trimester, or quarter systems; or (iii) 24 clock hours per week for institutions which utilize clock hours to measure progress. For students enrolled in an institution which measures progress in terms of both credit and clock hours, a student shall be considered a full-time student at that institution if the sum of the fractions representing the number of credit hours taken by the student, when divided by 12, and the number of clock hours per week taken by the student, when divided by 24, is equal to or greater than one, and if such student is charged the tuition and fees customarily charged for full-time study by the institution. Furthermore, a student shall be considered a full-time student if he undertakes a series of courses or seminars, which extends over a period not exceeding 18 weeks and which, if completed, would amount to the equivalent of at least 12 semester or 12 quarter hours and if he is charged the tuition and fees customarily charged for full-time study by the institution.

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

(g) "Good standing" means the eligibility of a student to continue in attendance in accordance with the standards and practices of the institution in which he is enrolled.

(h) "Half-time student" means a student who is carrying a half-time academic work load measured in terms of (1) the tuition and fees customarily charged for half-time study by the institution and (2) the course work or other required activities as determined by the institution in which the student is enrolled; provided, however, that such course work and activities amount to a minimum of (i) 6 semester hours or 6

quarter hours per academic term for institutions utilizing semesters, trimesters, or quarter hour systems; (11) 12 semester hours or 18 quarter hours per school year for institutions which measure progress in terms of credit hours but which do not utilize semester, trimester, or quarter systems; or (iii) 12 clock hours per week for institutions which utilize clock hours to measure progress. For students enrolled in an institution which measures progress in terms of both credit and clock hours, a student shall be considered a half-time student at that institution if the sum of the fractions representing the number of credit hours taken by the student, when divided by 6, and the number of clock hours per week taken by the student when divided by 12, is equal to or greater than one, and if such student is charged the tuition and fees customarily charged for half-time study by the institution. Furthermore, a student shall be considered a half-time student if he undertakes a series of courses or seminars, which extends over a period not exceeding 18 weeks and which, if completed, would amount to the equivalent of at least 6 semester or 6 quarter hours and is charged the tuition and fees customarily charged for half-time study by the institution. All students engaged in a program of study by correspondence which is offered as requiring at least 12 hours of preparation a week shall be considered half-time students for purposes of this part,

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

(1) "Institution of higher education" means an educational institution in any State which (1) 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, (2) is legally authorized within such 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 such a 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, (1) is an institution with respect to which the Commissioner 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 such an 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

accredited.

Such 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 provisions of clauses (1), (2), (4), and (5) of this paragraph unless such institution 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 Commissioner as a reliable authority as to the quality of public postsecondary vocational education in that State, and any proprietary institution of higher education, as defined in paragraph (m) of this section, which has an agreement with the Commissioner containing such terms and conditions as the Commissioner determines to be necessary to insure that the availability of assistance to students at the school under this part has not resulted, and will not result, in an increase in the tuition, fees, or other charges to such students.

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

(j) "Month" means any period of 30 consecutive days occurring within an academic year. If an institution enrolls a student for a period of time which consists of a given number of months and some remaining days, 16 or more of such remaining days may be considered a month; less than 16 days shall not be considered a month.

(k) “Nonprofit” as applied to a school, agency, organization, or institution means a school, agency, organization or institution owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

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

(1) "Payment Schedule" means a table, effective for a given academic year, published by the Commissioner which indicates the amount of a student's Scheduled Basic Educational Opportunity Grant based on the Family Contribution Schedules effective for that academic year as described in Subparts C and D of this part, the cost of attendance at the institution in which the student is enrolled as defined in 190.51, and the amount of funds available for making grants under this part for that academic year.

(m) "Proprietary institution of higher education" means a school which (1) provides not less than a six-month program of training to prepare students for gainful employment in a recognized occupation, (2) 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, (3) is legally authorized by the State in which it is located to provide a program of education beyond secondary education, (4) is accredited by a nationally recognized ac

crediting agency or association approved by the Commissioner for this purpose, (5) is not a public or other nonprofit institution, and (6) has been in existence for at least two years.

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

(n) "Scheduled Basic Educational Opportunity Grant Award" means the amount of a Basic Educational Opportunity Grant which would be paid to a full-time student for a full school year.

(o) "School year" means a period of time, generally not less than 8 months, in which a full-time student would normally be expected to complete the equivalent of two semesters, two trimesters, three quarters, or 900 clock hours of instruction.

(p) "State" includes, in addition to the several States of the Union, American Samoa, the Commonwealth of Puerto Rico, the District of Columbia, Guam, the Trust Territory of the Pacific Islands, and the Virgin Islands.

(20 U.S.C. 1141(b); 20 U.S.C. 1088(a))

(q) "Undergraduate course of study” means a regularly prescribed course of study for an undergraduate student at an institution of higher education.

(r) "Undergraduate student” means a student who (1) is in attendance at an institution of higher education and (2) has not earned his first baccalaureate or professional degree. A student who has not earned his 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 shall not be considered as an undergraduate student in that portion of the program that involves study 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. 1070a unless otherwise noted) § 190.3 Eligible student.

(a) A student is eligible to receive a Basic Educational Opportunity Grant under this part if he:

(1) Was not enrolled as a regular student at any institution of higher education as defined in 190.2(1) prior to April 1, 1973,

(2) Is accepted for enrollment or is enrolled in good standing as a full-time undergraduate student at an institution of higher education,

(3) Is enrolled in an eligible program as defined in § 190.2(e), and

(4) Is a citizen or national of the United States or is in the United States for other than a temporary purpose and is, or intends to become, a permanent resident thereof; or is a permanent resident of the Trust Territory of the Pacific Islands.

(b) For purposes of paragraph (a) of this section, a student shall be deemed not to have been enrolled as a regular student at any institution of higher edu

cation if such student was enrolled, whether or not for credit, in a remedial or preparatory program designed to enable the student to meet the requirements for enrollment at an institution of higher education or was enrolled on less than a full-time basis and was simultaneously enrolled in a secondary school. (20 U.S.C. 1070a; 1088; Pub. L. 93-35; Pub. L. 93-192)

§ 190.4 Duration of student eligibility.

(a) (1) The period during which a student may receive a Basic Educational Opportunity Grant shall be the period required for the completion of the undergraduate course of study being pursued by the student except that such period may not exceed a total of four school years unless (1) the student is pursuing a course of study leading to a first degree in a program of study which is designed by the institution offering it to extend over five school years, or (ii) the student is, or will be, unable to complete a course of study within four school years because the student was required to enroll in a noncredit remedial course of study, in which case such period may be extended for not more than one additional school year.

(2) For purposes of paragraph (a) (1) of this section a school year means the period of time necessary for a student to complete not less than the equivalent of 24 semester hours, 36 quarter hours, or 900 clock hours of instruction.

(3) For purposes of paragraph (a) (1) of this section, a noncredit remedial course of study means a course of study for which no credit is given toward an academic degree, and which is designed to increase the ability of the student to engage in an undergraduate course of study leading to such a degree.

(b) Each period of enrollment, during which a student receives any payment of a Basic Educational Opportunity Grant under this part, shall be charged against the period of eligibility set forth in paragraph (a) of this section for that student. The length of such period to be charged against the period of eligibility shall bear the same ratio to a school year as the payment received bears to the Scheduled Basic Educational Opportunity Grant for the entire academic year. (20 U.S.C. 10708)

$ 190.5 Concurrent receipt of multiple Basic Educational Opportunity Grant payments prohibited.

A student shall not be entitled to receive Basic Educational Opportunity Grant payments concurrently from more than one institution or from the Commissioner and an institution during an academic year.

(20 U.S.C. 10708)

Subpart B-Application Procedures for Determining Expected Family Contribution

$ 190.15 Request by applicant for recomputation of expected family contribution because of clerical or arithmetic error.

An applicant may request a recomputation of his expected family contribution if he believes a clerical or arithmetic error has occurred. The applicant requesting such a recomputation must submit his request for recomputation to the Commissioner no later than five (5) weeks after the processing date indicated on the "Student Eligibility Report". Such requests are to be made in such form as the Commissioner will specify. (20 U.S.C. 10708(b) (2))

§ 190.16 Extraordinary

If:

circumstances

affecting the expected family contribution determination.

(a) Either a parent or a spouse whose income was included in the calculation of expected family contribution as determined in § 190.33 or § 190.44 has died in the base year or the tax year subsequent to the base year,

(b) Either a parent or a spouse whose

income was included in the calculation of the expected family contribution as determined in § 190.33 or § 190.44 has experienced loss of employment of at least ten (10) consecutive weeks commencing in the base year and extending into the tax year subsequent to the base year or of at least ten (10) weeks during the tax year subsequent to the base year, or

(c) Either an applicant, parent, or spouse whose income was included in the calculation of the expected family contribution as determined in § 190.33 or. § 190.44 has been unable to pursue normal income-producing activities by reason of disability or natural disaster for a period of at least ten (10) consecutive weeks commencing in the base year and extending into the tax year subsequent to the base year or of at least ten (10) weeks during the tax year subsequent to the base year or

(d) The parents of a dependent student applicant have become separated or divorced since the time the student submitted his application, or

(e) An independent student applicant has become separated or divorced since the time the student submitted his application, the applicant may submit an application, or if an application has been previously submitted, a new application, which shall use, as the base year for this purpose, the tax year subsequent to the base year as established by the regulations in this part. Such an application shall include the annual adjusted family income received to the date of application or reapplication and an estimate of the annual adjusted family income for the remainder of that year. (20 U.S.C. 1070a(a) (3) (B) (1) (V))

Subpart E-Costs of Attendance

§ 190.51 Costs of attendance.

For the purposes of this part only the following expenses (and allowances in lieu of expenses) shall be recognized as a student's cost of attendance.

(a) Tuition and fees. The amount charged the student for tuition and fees that is generally charged to all students or that is generally charged to a particular class of students of which the applicant student is a member. For the purpose of this section, tuition and fees may not include any amounts related to the cost of travel, except such travel within the United States, other than travel from the student's residence to the institution, as is required in connection with a particular course of study.

(b) Room and board. (1) The actual amount charged by the institution pursuant to a contract entered into with the student under which both room and board are provided by the institution; or,

(2) The actual amount charged by the institution pursuant to such a contract entered into for room but not board, plus an allowance of $625 for the academic year; or

(3) The actual amount charged by the institution pursuant to such a con