[Federal Register Volume 59, Number 74 (Monday, April 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9260]


[[Page Unknown]]

[Federal Register: April 18, 1994]


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Part IV





Department of the Interior





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Bureau of Indian Affairs



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25 CFR Part 40




Administration of Educational Loans, Grants and Other Assistance for 
Higher Education; Proposed Rule
DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 40

RIN 1076-AA10

 
Administration of Educational Loans, Grants and Other Assistance 
for Higher Education

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Proposed rule.

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SUMMARY: The Bureau of Indian Affairs (BIA) proposes to revise part 40 
of Chapter I, title 25 of the Code of Federal Regulations, to ensure 
consistency with U.S. Department of Education student financial 
assistance program regulations, to implement requirements of a court 
decision regarding eligibility, and to change the title of part 40 to 
``Higher Education Grant Program''. Loans to individual Indians are 
provided for in 25 CFR part 101 and are, therefore, removed from this 
part.

DATES: Public comments must be received on or before July 18, 1994.

ADDRESSES: Comments are to be mailed to the Director, Office of Indian 
Education Programs, Bureau of Indian Affairs, Department of the 
Interior, 1849 C Street NW., Mail Stop 3530-MIB, Washington, DC 20240. 
Alternately, comments may be hand delivered to room 3510 at the above 
address.

FOR FURTHER INFORMATION CONTACT: Garry R. Martin, at telephone (202) 
208-4871.
SUPPLEMENTARY INFORMATION: The United States Department of Education 
published regulations in March 1975 setting forth the manner in which 
student financial assistance programs are administered. In the absence 
of regulations specific to the Bureau's Higher Education Program and 
eligible Indian students, recipient institutions of higher education 
often do not understand the purpose of the Bureau's program. These 
regulations are proposed to clarify the program and remedy inconsistent 
practices.
    The Bureau previously defined applicants for assistance under the 
Higher Education Grant Program to mean a person who is recognized as a 
member of an Indian tribe by the Secretary of the Interior and who has 
at least one-fourth degree Indian blood, Alaska Native, Eskimo or Aleut 
blood. However, the U.S. Court of Appeals for the Ninth Circuit has 
ruled that such \1/4\ blood requirement was not in accordance with the 
Indian Reorganization Act (IRA), the authorizing statute that was cited 
as authority for the regulation. Zarr v. Barlow, 800 F.2d 1484 (9th 
Cir. 1986). The authority used for the Higher Education Grant Program 
is the Snyder Act, which places no limitation on the definition of 
Indian.
    The definition in BIA elementary and secondary education programs, 
``an eligible Indian student is a student who is a member of or is at 
least a one-fourth degree Indian blood descendant of a member of an 
Indian tribe which is eligible for the special programs and services 
provided by the United States through the Bureau of Indian Affairs to 
Indians because of their status as Indians'', (Section 2008(f) of 25 
U.S.C.), is used.
    For purposes of this part, the definition is, therefore, revised. 
Comments are especially desired on this section of eligibility.
    On March 3, 1987, the Bureau published proposed Higher Education 
Grant Program rules in the Federal Register. In January 1991, the 
Bureau conducted consultation meetings with Indian tribes, parents, 
school boards, and other interested parties concerning the Higher 
Education Grant Program regulations. Oral testimony and written 
statements were received in the Office of Indian Education Programs 
until February 26, 1991. The Bureau considered the comments, 
objections, and suggested changes received in response to the 1987 
Federal Register publication and the 1991 consultation meetings in re-
proposing these regulations.
    The information and record-keeping requirements contained in this 
part have been submitted to the Office of Management and Budget for 
approval as required by 44 U.S.C. 3501 et seq. The collection of this 
information will not be required until approved by the Office of 
Management and Budget.
    The policy of the Department of the Interior is, whenever 
practical, to afford the public an opportunity to participate in the 
rulemaking process. Accordingly, interested persons may submit written 
comments regarding the proposed rule, by the date specified in the 
Dates section, to the location identified in the Addresses section of 
this document.
    The primary author of this document is Mr. Harvey Jacobs, Jr., 
Branch of Post Secondary Education, Office of Indian Education 
Programs.
    The Department of the Interior has determined that this proposed 
rule does not constitute a major Federal action significantly affecting 
the quality of the human environment and that no detailed statement is 
required pursuant to the National Environmental Policy Act of 1969.
    This document is not a significant regulatory action under 
Executive Order 12866 and therefore will not be reviewed by the Office 
of Management and Budget. This rule will not have a significant impact 
on a substantial number of small entities within the meaning of the 
Regulatory Flexibility Act (5 U.S.C. 606 et seq). These regulations 
will affect only the delivery of higher education services to eligible, 
individual Indian students. They will not have an impact on small 
entities as defined in the Act.

List of Subjects in 25 CFR Part 40

    Grant programs--Higher Education, Grant programs--Indians, Grant 
programs--education, Indians--education, Student aid, Record keeping 
requirements.
    For reasons set out in the Preamble, part 40 of subchapter E of 
chapter I, title 25 of the Code of Federal Regulations is proposed to 
be revised as set forth below.

PART 40--HIGHER EDUCATION GRANT PROGRAM

Subpart A--General Provisions

Sec.
40.1  Purpose and scope.
40.2  Definitions.
40.3  Program objective.
40.4  Information collection.
40.5  Prioritization of grants.
40.6  Allowable administrative costs.

Subpart B--Direct Student Grants

40.11  Eligible applicants.
40.12  Filing applications.
40.13  Application review.
40.14  Time period for a grant.
40.15  Duration of student eligibility.
40.16  Notification of grant award or denial.
40.17  Payment of grant.
40.18  Effect of termination of enrollment.
40.19  Effect of academic probation or suspension.
40.20  Appeals
40.21  Records and reporting.

    Authority: 25 U.S.C. 2, 9, and 13; Reorganization Plan No. 3 of 
1950 (65 Stat. 1262).

Subpart A--General Provisions


Sec. 40.1  Purpose and scope.

    The Higher Education Grant Program, administered under authority of 
the Snyder Act of November 2, 1921 (25 U.S.C. 13), provides financial 
assistance to eligible Indian students who have unmet financial needs 
as determined by the eligible institution's Financial Aid Office.


Sec. 40.2  Definitions.

    Academic year means a period of time in which a full-time student 
is expected to complete the equivalent of at least two semesters, two 
trimesters, or three quarters at institutions that measure academic 
progress in credit hours.
    Accreditation means the certification of an institution of higher 
education by a sanctioned national or regional accrediting agency or 
association recognized by the Secretary of Education.
    Assistant Secretary means the Assistant Secretary--Indian Affairs, 
Department of the Interior.
    Bureau means the Bureau of Indian Affairs.
    Campus-based aid means the Federal financial aid programs [i.e., 
Supplemental Educational Opportunity Grants (SEOG), College Work-Study 
(CWS), and Perkins Loan] administered by the Financial Aid Office.
    Continuing student means a grant recipient who is currently 
enrolled in an eligible institution, and is maintaining satisfactory 
progress in his or her course of study according to the institution's 
standards of satisfactory progress.
    Department of Education means the United States Department of 
Education.
    Director means the Director, Office of Indian Education Programs, 
Bureau of Indian Affairs.
    Eligible institution means an institution of higher education that 
is accredited by a national or regional accrediting agency or is a 
candidate for accreditation, or is a Tribally Controlled Community 
College or has qualified under the three institutional certification 
method, established under section 1201(a)(5)(b) of the Higher Education 
Act of 1965 (20 U.S.C. 1141(a)).
    Financial Aid Office means the office of an institution of higher 
education that has responsibility for institutionally administered 
financial aid.
    Financial aid package means the institution's document(s) that 
identifies (identify) the amounts and types of financial aid awarded by 
the institution and the amount of unmet need.
    Full-time student means an enrolled student who is carrying a full-
time academic workload (other than by correspondence) as determined by 
the eligible institution, under standards applicable to all students 
enrolled in that student's particular program.
    Higher Education Office means the Bureau Education Line Office 
administering funds appropriated to the Bureau for higher education 
grants to eligible Indian students.
    Indian means a person who is a member of, or is at least a \1/4\ 
degree Indian blood descendent of a member of, a federally recognized 
Indian tribe eligible to receive services from the Department of the 
Interior.
    Indian tribe means any Indian Tribe, Band, Nation, Rancheria, 
Pueblo, Colony or Community, including any Alaska Native village, that 
is Federally recognized by the United States Government, through the 
Secretary of the Interior, for special programs and services provided 
by the Secretary to Indians because of their status as Indians.
    Near reservation means those areas or communities adjacent or 
contiguous to reservations which are designated by the Assistant 
Secretary--Indian Affairs upon recommendations of the local BIA 
Superintendent. These recommendations shall be based upon consultation 
with the tribal governing body of those reservations, as locales 
appropriate for the extension of financial assistance and/or social 
services, on the basis of the following general criteria:
    (a) Number of Indian people native to the reservation residing in 
the area;
    (b) Written designation by the tribal governing body that members 
of their tribe and family members who are Indian residing in the area 
are socially, culturally and economically affiliated with their tribe 
and reservation;
    (c) Geographical proximity of the area to the reservation; and
    (d) Administrative feasibility of providing an adequate level of 
services to the area. The Assistant Secretary--Indian Affairs shall 
designate each approved area and publish the designations in the 
Federal Register.
    Pell Grant Program means the program of financial aid for 
undergraduate students authorized by Title IV-A Subpart 1 of the Higher 
Education Act of 1965, as amended, and governed by regulations 
contained in 34 CFR part 690.
    Program plan means an individualized course of study in which the 
student, in conjunction with the degree granting institution of higher 
education, outlines the required courses for the desired degree.
    Secretary means the Secretary of the Interior.
    Unmet need means the difference between the student's cost of 
education and the resources available to defray those costs. Resources 
available include federal, state and institutional financial aid, 
excluding Bureau grants.
    The Higher Education Office may adjust the unmet need in accordance 
with the criteria found in 34 CFR part 668.


Sec. 40.3  Program objective.

    The objective of the Bureau's Higher Education Grant Program is to 
provide financial aid to eligible Indian students to obtain an 
undergraduate degree from an eligible institution.


Sec. 40.4  Information collection.

    The information and record-keeping requirements contained in this 
Part have been submitted to the Office of Management and Budget for 
approval as required by 44 U.S.C. 350 1 et seq. The collection of 
information will not be required until it has been approved by the 
Office of Management and Budget. The information is collected to 
determine the eligibility of Indian applicants. The reporting burden of 
this form is estimated to be an average of three hours per response, 
which includes time needed for review, gathering and maintaining this 
form. The information will be used to award grants to Indians for 
student assistance.


Sec. 40.5  Prioritization of grants.

    The Bureau's Higher Education Grant Program shall be implemented 
for the benefit of eligible Indians, in accordance with a priority plan 
established for/by the tribes affected by the program. The tribe may 
decide to set standards in addition to those established under this 
part.


Sec. 40.6  Allowable administrative costs.

    (a) Not more than 15 percent of the funds available may be used to 
pay for the direct costs chargeable to the program.
    (b) The Higher Education Office shall consider the following as 
direct costs chargeable to the program:
    (1) Compensation of employees for the time and effort devoted 
specifically to the program;
    (2) Cost of materials acquired, consumed, or expended specifically 
for the purpose of the program;
    (3) Equipment and other approved capital expenditures; and
    (4) Other expenses incurred specifically to carry out the program.
    (c) No less than 85 percent of the funds must be used for grants to 
eligible students.

Subpart B--Direct Student Grants


Sec. 40.11  Eligible applicants.

    To be eligible for assistance from funds appropriated to the Bureau 
for the Higher Education Grant Program, an applicant must:
    (a) Be an Indian as defined in Section 40.2;
    (b) Be admitted for enrollment as a student in an eligible 
institution;
    (c) Apply for all available campus-based aid in a timely manner.
    (d) Have unmet financial need as determined by the eligible 
institution's Financial Aid Office according to the U.S. Department of 
Education's standard formula used to evaluate information the student 
supplies on their standard application form as required under 34 CFR 
part 668, Student Assistance General Provisions.


Sec. 40.12  Filing applications.

    The ``Bureau of Indian Affairs Higher Education Grant Application'' 
form shall be used by all applicants for grants under this part. The 
form shall be available at the Higher Education Office.
    (a) Applications for grants under this Part shall be submitted to 
the Higher Education Office administering the program for the affected 
tribe(s). Those offices shall establish time-frames, including 
submission deadlines.
    (b) A complete application package consists of the following:
    (1) A fully completed Bureau Higher Education Grant Application 
Form;
    (2) A current Certificate of Indian Blood (CIB) from the tribe or 
the Bureau certifying that the applicant is a member of a tribe, or if 
not a member, appropriate documentation to support claim to descent;
    (3) A letter of acceptance from an eligible institution (required 
only for new applicants, transfers and previously suspended students); 
and
    (4) A ``financial aid package'', prepared and certified by the 
institution's Financial Aid Office, indicating the student's unmet 
needs.
    (c) Any applications received after the stated closing date will be 
considered only if funds remain available after grants are made to 
eligible applicants who met the deadline.
    (d) A separate application must be submitted for a summer school 
program.


Sec. 40.13  Application review.

    (a) The Higher Education Office shall review each completed 
application, including the financial aid package, and verify a 
student's unmet financial need with the Financial Aid Office. Any 
changes must be supported with appropriate documentation from the 
applicant or other directly involved party.
    (b) Approval of eligible applicants for grants under this Part is 
to be made by the Education Line Officer in accordance with the tribe's 
priority plan.
    (c) The Higher Education Office may award students no more than the 
unmet need amount.
    (d) Students who reside on the Indian reservations or trust or 
restricted lands under the jurisdiction of the Bureau shall receive 
first priority in funding, in accordance with the priority established 
under Sec. 40.5. Those residing near the reservation shall be 
considered afterward.


Sec. 40.14  Time period for a grant.

    (a) Grants made under this Part are subject to the availability of 
funds.
    (b) Grants may only cover the period of time required by students 
to complete their first undergraduate baccalaureate course of study 
under the limitations set out in Sec. 40.16.


Sec. 40.15  Duration of student eligibility.

    (a) A student is eligible to receive a grant for the period 
required to complete an undergraduate baccalaureate course of study, as 
determined by the institution.
    (b) The period required to complete the undergraduate baccalaureate 
course of study may not exceed the full-time equivalent of:
    (1) Five (5) academic years for an undergraduate degree or 
certificate program that normally requires four (4) academic years, or 
less, of study to complete; or (2) Six (6) academic years for an 
undergraduate degree or certificate program that normally requires more 
than four academic years of study to complete, as determined by the 
institution.
    (c) The Higher Education Office may, with appropriate supporting 
documentation, waive the limitations contained in paragraph (b) of this 
section, if it determines that the student's failure to complete the 
program in the time set forth in this section resulted from an undue 
hardship caused by one of the following:
    (1) The death of a relative of the student;
    (2) An injury or illness of the student; or
    (3) Other special circumstances.
    (d) To verify progress toward the completion of an undergraduate 
baccalaureate course of study, all continuing students shall submit 
grade reports or transcript(s), as issued by the institution for each 
term, to the Higher Education Office on an annual basis.


Sec. 40.16  Notification of grant award or denial.

    The Higher Education Office shall notify each applicant and the 
Financial Aid Office in writing of their approval or denial. Denial 
notification shall provide supporting reason for such determination.


Sec. 40.17  Payment of grant.

    (a) Grants made by the Higher Education Office shall be made 
available to the applicant in care of the Financial Aid Office of the 
eligible institution in which he or she is enrolled.
    (b) Financial Aid Offices shall disburse grants made under this 
Part to the recipients according to the disbursement policy of the 
institution.


Sec. 40.18  Effect of termination of enrollment.

    (a) A grant recipient who, without justifiable circumstances, fails 
to enroll; officially or unofficially withdraws; is expelled before 
completion of the academic term, semester, trimester, or quarter; or 
fails to meet the academic standards required by the institution during 
a probation period, shall repay the amount of the grant received from 
the institution to the Higher Education Office.
    (b) A grant recipient who does not enroll, who withdraws, or who is 
expelled during an academic term shall submit a written notification to 
the Higher Education Office, within 10 days of his/her failure to 
enroll, withdrawal or expulsion, with the following information:
    (1) The date of withdrawal, expulsion, or failure to enroll
    (2) A statement with supporting documentation indicating the reason 
for withdrawal or expulsion or failure to enroll, including mitigating 
circumstances, if any; and
    (3) A copy of the student's request made to the institution to 
return, by check or money order payable to the Higher Education Office, 
any remaining balance of the grant for that academic term.
    (c) The student must demonstrate justifiable circumstances to avoid 
repayment of the grant amount expended upon termination of enrollment 
for the academic term. Failure to provide documentation for justifiable 
circumstances will result in termination of the student's eligibility 
for future grants under this Part and may require the student to repay 
any portion of the amount received for the academic term. The 
justifiable circumstances include, but are not limited to:
    (1) Withdrawal due to an injury or illness of the student; and
    (2) Other special circumstances.
    (d) Within 30 days of receipt of the information required in 
paragraphs (b) and (c) of this section, the Higher Education Office 
shall determine the portion of the grant that must be repaid, and 
notify the student.
    (e) The Higher Education Office shall make a reasonable effort to 
contact the student and make arrangements for recovery of the 
determined amount.


Sec. 40.19  Effect of academic probation or suspension.

    (a) Grant recipients shall continue to be eligible for a grant 
under this Part as long as they maintain the academic standards 
required by the institution, subject to the time limitations set forth 
in Sec. 40.16.
    (b) A grant recipient on academic probation must complete 12 or 
more quarter/semester hours during the term and obtain the GPA required 
by the institution for removal from probationary status.


Sec. 40.20  Appeals.

    The decisions of any BIA official under this Part may be appealed 
pursuant to the procedures in 25 CFR Part 2.


Sec. 40.21  Records and reporting.

    (a) The Higher Education Office shall maintain student files, a 
ledger of all costs, and related records necessary to identify all 
transactions involving expenditure of funds made available under this 
Part. Such records shall:
    (1) Identify each recipient's award and status;
    (2) Demonstrate the eligibility of each student assisted under the 
Program;
    (3) Indicate the amount of each award and the manner in which the 
need was calculated and met; and
    (4) Identify the students who have terminated their enrollment.
    (b) The Higher Education Office shall submit Higher Education Grant 
Program Annual Reports, for the preceding academic year program, to the 
Director by December 1.
    (c) The Higher Education Office shall maintain a listing of grant 
recipients.
    (d) Each Higher Education Office shall submit any records and 
information that the Director requires in connection with the 
administration of the program and shall comply with such requirements 
as the Director may find necessary to ensure the accuracy of such 
reports.

    Dated: January 31, 1994.
Ada E. Deer,
Assistant Secretary--Indian Affairs.
[FR Doc. 94-9260 Filed 4-15-94; 8:45 am]
BILLING CODE 4310-02-P