[Federal Register Volume 59, Number 78 (Friday, April 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9713]


[[Page Unknown]]

[Federal Register: April 22, 1994]


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Part II





Department of Education





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34 CFR Part 641




Faculty Development Fellowship Program; Proposed Rule
DEPARTMENT OF EDUCATION

34 CFR Part 641

RIN 1840-AC04

 
Faculty Development Fellowship Program

AGENCY: Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes regulations for the Faculty Development 
Fellowship (FDF) Program. The FDF Program provides grants to 
institutions of higher education, consortia of institutions, and 
consortia of institutions and nonprofit organizations to fund 
fellowships for individuals from underrepresented minority groups to 
enter or continue in the higher education professorate. These 
regulations are needed to implement the FDF Program which was enacted 
in the Higher Education Amendments of 1992, as amended by the Higher 
Education Technical Amendments of 1993. The proposed regulations 
incorporate statutory requirements and provide rules for applying for 
and spending Federal funds under this program.

DATES: Comments must be received on or before May 23, 1994.

ADDRESSES: All comments concerning these proposed regulations should be 
addressed to Karen W. Johnson, U.S. Department of Education, 400 
Maryland Avenue, SW., Portals Building, Court Yard Level, suite C-80, 
Washington, DC 20202-5251.
    A copy of any comments that concern information collection 
requirements should also be sent to the Office of Management and Budget 
at the address listed in the Paperwork Reduction Act section of this 
preamble.

FOR FURTHER INFORMATION CONTACT: Karen W. Johnson. Telephone: (202) 
260-3209. Individuals who use a telecommunications device for the deaf 
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339 between 8 a.m. and 8 p.m., Eastern time.

SUPPLEMENTARY INFORMATION: These proposed regulations would implement 
the Faculty Development Fellowship Program, which is authorized by 
Title IX, Part E of the Higher Education Act of 1965 (HEA), as amended 
by the Higher Education Amendments of 1992, Public Law 102-325 (1992 
Amendments), and the Higher Education Technical Amendments of 1993, 
Public Law 103-208.
    The Faculty Development Fellowship Program supports the National 
Education Goals. Specifically, this program furthers Goal 6, which 
provides that by the year 2000, that every adult American will be 
literate and will possess the knowledge and skills necessary to compete 
in a global economy and exercise the rights and responsibilities of 
citizenship. This program furthers this Goal by providing grant funds 
to allow prospective faculty members to obtain doctoral degrees that 
will allow them to enter the higher education professorate, and 
experienced faculty members to engage in doctoral study or participate 
in professional development programs that will enhance their skills and 
careers.

Summary of Major Provisions

    The following is a summary of the major regulatory provisions for 
the Faculty Development Fellowship Program. The summary distinguishes 
between regulatory provisions that: (1) Incorporate statutory 
requirements and (2) other regulatory provisions. The other regulatory 
provisions contain interpretations of statutory text or provide 
standards and procedures for the program that are not stated in the 
statutory text. Commenters are requested to direct their comments to 
the other regulatory provisions.

Section 641.1  What is the Faculty Development Fellowship Program?

    The FDF Program provides grants to institutions of higher 
education, consortia of institutions, and consortia of institutions and 
nonprofit organizations to fund fellowships for individuals from 
underrepresented minority groups to enter or continue in the higher 
education professorate.
    The Secretary proposes to award three types of fellowships under 
the FDF program: prospective faculty development fellowships; 
experienced faculty development fellowships; and faculty professional 
development fellowships. Prospective faculty development fellowships 
would be awarded to talented baccalaureate degree recipients from 
underrepresented minority groups who have financial need and who wish 
to obtain a doctoral degree and enter the higher education 
professorate. Experienced faculty development fellowships would be 
awarded to talented faculty from underrepresented minority groups who 
wish to continue in the higher education professorate and obtain a 
doctoral degree. Faculty professional development fellowships would be 
awarded to talented faculty from underrepresented minority groups who 
wish to participate in short-term development programs, including 
seminars, conferences, and workshops, specifically designed to enhance 
their skills and careers. These types of fellowships would not be 
awarded for study leading to a doctoral degree. The Secretary believes 
that these fellowships should not duplicate the purposes of the 
doctoral study fellowships funded under this program.

Section 641.2  Who is Eligible for a Grant To Fund Prospective and 
Experienced Faculty Development Fellowships?

    The Secretary proposes to award grants for prospective and 
experienced faculty development fellowships to the following: (1) An 
institution with a demonstrated record of enhancing the access to 
graduate education of individuals from underrepresented minority 
groups; (2) a consortium of institutions with a demonstrated record of 
enhancing the access to graduate education of individuals from 
underrepresented minority groups; or (3) a consortium of nonprofit 
organizations and institutions with a demonstrated record of enhancing 
the access to graduate education of individuals from underrepresented 
minority groups. Section 951(a) of the HEA requires the Secretary to 
award grants only to institutions or consortia that have a 
``demonstrated record of enhancing the access'' of individuals from 
underrepresented minority groups. The Secretary would consider a 
consortium as having a demonstrated record of enhancing the access to 
graduate education of individuals from underrepresented minority groups 
if each institution in the consortium that intends to offer a program 
of doctoral study has a demonstrated record of enhancing the access to 
graduate education of individuals from underrepresented minority 
groups.
    An institution that intends to offer a program of doctoral study 
would have a demonstrated record of enhancing access to graduate 
education for individuals from underrepresented minority groups if it 
provides evidence of the following: (1) A social and academic 
environment that is supportive of the academic success of students and 
faculty who are members of underrepresented minority groups; (2) 
procedures to identify, recruit, and enhance the access of individuals 
from underrepresented minority groups to graduate education; (3) a 
successful record of completion of doctoral degree programs by 
individuals from underrepresented minority groups; and (4) a successful 
record of assisting individuals from underrepresented minority groups 
who receive doctoral degrees to enter the higher education 
professorate. The Secretary believes that this interpretation fulfills 
the purposes of the program and congressional intent.
    Finally, section 901(b)(3) of the HEA provides that no fellowship 
shall be awarded under Title IX of the HEA for study at a school or 
department of divinity. The Secretary has implemented this requirement 
in proposed Sec. 641.2(d).

Section 641.3  Who is Eligible for a Grant To Fund Faculty Professional 
Development Fellowships?

    The Secretary proposes to award grants for faculty professional 
development fellowships to the following: (1) An institution with a 
demonstrated record of enhancing the professional development of 
faculty from underrepresented minority groups; (2) a consortium of 
institutions with a demonstrated record of enhancing the professional 
development of faculty from underrepresented minority groups; or (3) a 
consortium of nonprofit organizations and institutions with a 
demonstrated record of enhancing the professional development of 
faculty from underrepresented minority groups. The Secretary would 
consider a consortium as having a demonstrated record of enhancing the 
professional development of faculty from underrepresented minority 
groups if each institution and nonprofit organization in the consortium 
that intends to offer a professional development program has a 
demonstrated record of enhancing the professional development of 
faculty from underrepresented minority groups.
    An institution or nonprofit organization that intends to offer a 
professional development program would have a demonstrated record of 
enhancing the professional development of faculty from underrepresented 
minority groups if it provides evidence that it has policies or 
procedures for assisting faculty from underrepresented minority groups 
to participate in professional development programs. This would 
include, but not be limited to, evidence of the following: (1) An 
academic environment that is responsive to advancing the careers of 
underrepresented minorities; (2) programs that have been designed to 
provide opportunities for faculty from underrepresented minority groups 
to improve on instructional methodology; and (3) a successful record of 
providing opportunities for faculty from underrepresented minority 
groups to attend workshops, seminars, and other professional 
development activities relating to their academic careers.
    Finally, the Secretary would not award a grant to fund a faculty 
professional development fellowship for study at a school or department 
of divinity. As in Sec. 641.2, this restriction is based on section 
901(b)(3) of the HEA.

Section 641.5  What is Included in the Grant?

    Each grant to fund prospective and experienced faculty development 
fellowships would consist of the stipends paid by the Secretary through 
the grantee to fellows. The stipend would provide an allowance to a 
fellow for the fellow's (and his or her dependents') subsistence and 
other expenses.
    Each grant to fund faculty professional development fellowships 
would consist of the allowable costs of the fellows' participation in 
professional development programs. The allowable costs would include: 
(1) Costs of instruction, including fees for materials and supplies; 
(2) out-of-town travel expenses, excluding foreign travel; and (3) per 
diem expenses for food and lodging during the period of instruction.

Section 641.7  What Definitions Apply?

    The Secretary has proposed certain definitions for the FDF program. 
These proposed definitions are listed in this section of the 
regulations. The Secretary believes that the proposed definitions are 
necessary to aid in the understanding of the proposed regulations. The 
proposed definitions are based on Departmental expertise, and, in many 
cases, mirror definitions used in regulations implementing other 
fellowship programs administered by the Department under Title IX of 
the HEA.

Section 641.8  What is the Duration of A Project Period?

    The maximum duration of a grant to fund prospective or experienced 
faculty development fellowships would be 60 months. The Secretary 
believes five years is an adequate amount of time for a fellow to 
complete graduate study.
    The maximum duration of a grant to fund faculty professional 
development fellowships would be 36 months. The Secretary believes that 
3 years is an adequate amount of time for a fellow to receive the 
benefits of the programs offered under these fellowships.

Section 641.10  How Does an Applicant Apply for a Grant To Fund 
Prospective and Experienced Faculty Development Fellowships?

    To apply for a grant to fund prospective and experienced faculty 
development fellowships, an applicant would be required to submit an 
application that contains: (1) The applicant's plan for identifying and 
recruiting talented and financially needy baccalaureate degree 
recipients or talented faculty from underrepresented minority groups 
who may participate in the project; (2) a description of the program or 
programs of doctoral study for which it will award fellowships; (3) the 
applicant's plan for using minority faculty and other faculty as 
advisors, mentors, and academic resources in support of the project; 
(4) a description of other resources of the applicant, including 
tuition waivers, assistantships, or financial aid other than loans, 
that the applicant proposes to make available to fellows; and (5) if 
the applicant is a consortium, a listing of the names of the 
undergraduate institutions that are historically or predominantly black 
colleges and universities or other institutions such as Hispanic 
serving institutions or tribally controlled colleges with significant 
enrollments of individuals from minority groups that have agreed to 
cooperate with the applicant to carry out the purposes of the project. 
These application requirements are based on section 953(b) of the HEA.
    The Secretary has determined that an application need not provide, 
under section 953(b)(5) of the HEA, a description of its method of 
determining a student's financial need. Section 952 of the HEA requires 
the amount of the fellowship to be based on the financial need of the 
recipient ``in accordance with measurements of need approved by the 
Secretary.'' The Secretary proposes to define financial need to mean 
the fellow's financial need as determined under Title IV, Part F, of 
the HEA for the period of the fellow's enrollment in the approved field 
of doctoral study for which the fellowship was awarded. This definition 
is consistent with the manner in which financial need is defined in the 
other fellowship programs administered by the Secretary under Title IX 
of the HEA. The Secretary does not believe it is necessary to require 
applicants to describe their methods of determining a student's 
financial need given that there would only be one appropriate way of 
determining need under this proposed definition.
    The Secretary also proposes to require that the application 
contain: (1) If the applicant is a consortium, a signed agreement 
listing the names of the other institutions or nonprofit organizations 
included in the consortium, and terms of cooperation among the members 
of the consortium; (2) if the applicant is applying for a grant to fund 
prospective faculty development fellowships, assurances that the 
applicant will provide at least one academic term of supervised 
training in instruction to each fellow during the period of the 
fellowship, or, if the applicant is applying for a grant to fund 
experienced faculty development fellowships, assurances that the 
applicant will provide an opportunity for each fellow to improve his or 
her instructional methods; (3) assurances that the applicant will 
ensure that fellows are making satisfactory progress in, and devoting 
full time to, the doctoral study program in which they are enrolled; 
and (4) evidence that each institution that plans to offer a program of 
doctoral study to fellows has a demonstrated record of enhancing the 
access to graduate education of individuals from underrepresented 
minority groups.
    In addition to the statutory and regulatory application 
requirements set out above, the Secretary would require that an 
application respond to the selection criteria in Sec. 641.21. These 
additional application requirements are proposed under the authority of 
section 953(b) of the HEA which authorizes the Secretary to require by 
regulations other assurances and information in an application. The 
Secretary believes that the additional application requirements are 
necessary for the proper administration of these fellowships.

Section 641.11  How Does an Applicant Apply for a Grant To Fund Faculty 
Professional Development Fellowships?

    To apply for a grant to fund faculty professional development 
fellowships, an applicant would be required to submit an application 
that responds to the selection criteria in Sec. 641.22. In addition, 
the Secretary would require an application to contain: (1) The 
applicant's plan for identifying and recruiting talented faculty from 
underrepresented minority groups who wish to participate in 
professional development programs specifically designed to advance 
their careers; (2) a description of the program or programs of 
professional development the applicant plans to offer, and the ways in 
which the program or programs are specifically designed to advance the 
careers of faculty from underrepresented minority groups; (3) the 
applicant's plan for using minority and other faculty as advisors, 
mentors, and academic resources in support of the project; (4) a 
description of other resources of the applicant that the applicant 
shall make available to fellows; (5) if the applicant is a consortium, 
a signed agreement listing the names of the undergraduate institutions 
that are historically or predominantly black colleges and universities 
or other institutions such as Hispanic serving institutions or tribally 
controlled colleges with significant enrollments of individuals from 
minority groups that have agreed to cooperate to carry out the purposes 
of the project, names of the other institutions or nonprofit 
organizations included in the consortium, and the details of the terms 
of cooperation among the members of the consortium; and (6) evidence 
that each institution or nonprofit organization that plans to offer a 
faculty professional development program has a demonstrated record of 
enhancing the professional development of faculty from underrepresented 
minority groups.
    The Secretary believes that many of the requirements in section 
953(b) of the HEA are applicable only to doctoral study programs and 
are not appropriate for faculty professional development fellowships. 
The Secretary proposes application requirements for faculty 
professional development fellowships pursuant to the authority in 
section 953(a) of the HEA. The Secretary believes that the additional 
application requirements are necessary for the proper administration of 
these fellowships.

Section 641.20  How Does the Secretary Evaluate an Application?

Section 641.21  What Selection Criteria Does the Secretary Use To 
Evaluate an Application for a Grant To Fund Prospective or Experienced 
Faculty Development Fellowships?

Section 641.22  What Selection Criteria Does the Secretary Use To 
Evaluate an Application for a Grant To Fund Faculty Professional 
Development Fellowships?

    The Secretary has proposed a process for evaluating applications 
and the selection criteria to be used in selecting grantees for the 
fellowships awarded under the FDF Program. The proposed evaluation 
process and selection criteria are listed in these sections of the 
regulations. The proposed selection criteria will enable the Secretary 
to select projects that best serve fellows and carry out the purposes 
of this program.

Section 641.23  What Additional Factors Does the Secretary Consider?

    Section 951(b) of the HEA provides that, in awarding grants, the 
Secretary shall ensure: (1) An equitable geographic distribution of 
grants; and (2) that both public and private institutions are fairly 
represented among grantees. The Secretary implements these two 
requirements in Sec. 641.23 of the proposed regulations.
    In addition, the Secretary proposes to ensure an equitable 
distribution of fellowships among underrepresented minority groups. The 
Secretary believes that this is necessary to ensure that members of all 
underrepresented minority groups participate in and benefit from the 
fellowship program.

Section 641.24  What Priorities Does the Secretary Establish for Grants 
To Fund Prospective Faculty Development and Experienced Faculty 
Development Fellowships?

    In awarding grants to fund prospective and experienced faculty 
development fellowships, the Secretary proposes to award three 
additional points to applicants whose applications describe projects 
that: (1) Provide each fellow a tuition waiver; and a minimum $2,000 in 
support beyond the stipend received by each fellow or additional 
financial support in conjunction with teaching or research activities 
that are part of the fellow's doctoral program; (2) provide additional 
financial support to each fellow from non-Federal resources, either in 
cash or in-kind, such as contributions from the business community and 
civic organizations; (3) emphasize courses of study leading to the 
doctoral degree in disciplines where minorities are underrepresented; 
and (4) describe steps to ensure that a fellow will teach at an 
institution where minority undergraduate students are likely to benefit 
from the educational experience and academic achievement of the fellow. 
An applicant must meet each of the four requirements to be eligible for 
the additional points. This priority is required by section 951(e) of 
the HEA.
    The Secretary may waive all or any portion of the first 
requirement, that an applicant provide each fellow a tuition waiver and 
a minimum $2,000 in support beyond the stipend received by each fellow 
or additional financial support in conjunction with teaching or 
research activities that are part of the fellow's doctoral program, 
upon the request of any institution that has been designated as an 
eligible institution under Title III of the HEA in the year in which 
the institution, or the consortium of which the institution is a 
member, is applying for a grant under this program. In the case of a 
consortium, the waiver would only apply to the eligible Title III 
institutions and not to any other member of the consortium. To meet 
this priority, the Title III institution still would be required to 
satisfy the second, third, and fourth requirements of the priority even 
if the first requirement is waived.
    The waiver authority is based on section 951(d) of the HEA. Section 
951(d) of the HEA authorizes the Secretary to waive all or any portion 
of the requirements in ``subsection (b)'' upon request of a Title III 
institution. The Secretary believes that this cross-reference to the 
geographic distribution requirements in section 951(b) of the HEA was a 
legislative drafting error. The Secretary believes section 951(d) was 
intended to authorize the waiver of the priority in section 951(e)(1) 
of the HEA. The conference report accompanying the Higher Education 
Amendments of 1992 clearly states that the provision in the House 
version of the bill regarding the waiver for Title III institutions 
were incorporated into the bill that was enacted into law. The House 
bill authorized the Secretary to waive the requirement under section 
973(b)(1) of the House bill for eligible Title III institutions. This 
section of the House bill required institutions to provide a tuition 
waiver and a minimum of $2,000 in stipend support for fellows. The 
Secretary proposes also to interpret the waiver as applicable to the 
requirements in section 951(e)(1)(B)(ii), that an applicant provide 
additional financial support in conjunction with teaching or research 
activities that are part of the fellow's doctoral program. The statute 
gives priority to applicants to provide a tuition waiver and either a 
minimum $2,000 in support beyond the stipend received by each fellow or 
additional financial support in conjunction with teaching or research 
activities that are part of the fellow's doctoral program. The 
Secretary believes it would be illogical to allow for a waiver when an 
institution selects one option but not allow for a waiver if an 
institution selects the other option.

Section 641.25  What Other Priorities Does the Secretary Establish?

    The Secretary proposes to retain the discretion to give absolute 
priority to applications for grants to fund: (1) Prospective faculty 
development fellowships; (2) experienced faculty development 
fellowships; (3) faculty professional development fellowships; or (4) 
two or more of these categories of fellowships. The Secretary would 
annually announce the absolute priority in a notice inviting 
applications for this program published in the Federal Register. The 
effect of this may mean that only one of these fellowship categories 
may be funded in any given year.

Section 641.30  How Does a Grantee Select Fellows?

    In selecting individuals to receive fellowships, a grantee would 
consider only individuals who meet the eligibility requirements for 
each of the three types of fellowships funded under this program and 
are: (1) United States citizens or nationals; (2) permanent residents 
of the United States; (3) in the United States for other than a 
temporary purpose and intending to become citizens or permanent 
residents; or (4) permanent residents of the Trust Territory of the 
Pacific Islands (Palau). These eligibility requirements mirror those 
used in other regulations implementing fellowship programs administered 
by the Secretary under Title IX of the HEA.

Section 641.31  How Does an Individual Apply for a Fellowship?

    An individual would apply directly to the grantee for a fellowship. 
If the grantee is a consortium, one member of the consortium would be 
designated as the fiscal agent and act as the representative of the 
consortium under 34 CFR 75.129. Individuals would be required to apply 
to the designated member of the consortium rather than to the 
institution that intends to offer the program of study. The Secretary 
believes it is necessary for the fiscal agent to handle all of the 
paperwork relating to the project since it is legally responsible for 
the actions of the consortium under Sec. 75.129(a).

Section 641.32  What Special Rule Applies to the Distribution of 
Fellowships?

    Section 951(c)(1) of the HEA provides that each institution or 
consortium receiving a grant under the FDF program shall ensure that 
during the period of the grant there is an equitable distribution of 
fellowships among underrepresented groups. The Secretary proposes to 
implement this section for all three types of fellowships by requiring 
each grantee to ensure that there is an equitable distribution of 
fellowships among underrepresented minority groups.
    The Secretary would define equitable distribution differently for 
each of the three types of fellowships. In the case of prospective 
faculty development fellowships, equitable distribution would mean that 
fellowships are distributed in a manner that reflects the 
representation of eligible individuals from underrepresented minority 
groups applying for prospective faculty development fellowships from 
each grantee. For experienced faculty development fellowships, the 
Secretary would define equitable distribution to mean the distribution 
of fellowships in a manner that reflects the representation of 
underrepresented minority groups among eligible non-doctoral degree 
bearing faculty applying for experienced faculty development 
fellowships at each institution from which fellows are selected. For 
faculty professional development fellowships, an equitable distribution 
would mean the distribution of fellowships in a manner that reflects 
the representation of underrepresented minority groups among the 
eligible members of the faculty applying for faculty professional 
development fellowships at each institution from which fellows are 
selected. Only those individuals who meet the requirements in 
Sec. 641.30 are eligible for a fellowship. One of the criteria for 
eligibility is that an individual be ``talented.'' Therefore, in 
determining the equitable distribution, an institution would not be 
required to award fellowships to members of a particular minority group 
if the individuals applying for fellowships from that minority group do 
not meet each of the eligibility criteria in Sec. 641.30. The Secretary 
particularly requests comment on all of the above definitions of 
equitable distribution.
    Section 951(c)(2) of the HEA, however, provides that an institution 
would not be required to grant preference or disparate treatment to the 
members of one group because the members of that group are not 
receiving fellowships under this program that are in proportion to 
their representation in any community, State, section, or other area. 
For example, the Secretary interprets this provision to mean that an 
institution would not be required to ensure that the number of 
fellowships received by the members of one minority group is 
proportionate to the representation of that group in the United States.

Section 641.40  What is the Amount of a Stipend Awarded to Prospective 
and Experienced Faculty Development Fellows?

    Section 952 of the HEA provides that a grantee shall pay a 
prospective or experienced faculty development fellow a stipend at a 
level of support equal to that provided by the National Science 
Foundation graduate fellowships or the fellow's demonstrated level of 
financial need, whichever is less. The Secretary implements this 
requirement in proposed Sec. 641.40(a). The Secretary would announce 
the amount of the maximum stipend awarded to graduate fellowship 
recipients in a notice published in the Federal Register.

Section 641.50  How Does a Grantee Disburse and Return Funds for 
Prospective and Experienced Faculty Development Fellowships?

    The Secretary proposes to require a grantee that receives grant 
funds for prospective and experienced faculty development fellowships 
to disburse the stipend to the fellow in accordance with the regular 
payment schedule of the institution in which the fellow is enrolled, 
but not less than one payment per academic term.
    If a fellow withdraws from an institution or completes his or her 
program of study before the completion of an academic term for which he 
or she received a stipend installment, the Secretary would permit a 
grantee to award the fellowship for the remainder of the project period 
to another individual who satisfies the eligibility requirements for 
the fellowship in proposed Sec. 641.30. If a fellowship is vacated and 
the grantee does not award the fellowship to another individual, a 
grantee would be required to return unexpended stipend funds to the 
Secretary, unless the Secretary authorizes the use of those funds for a 
subsequent budget period. The institution would also be required to 
return the unexpended stipend funds at a time and in a manner 
determined by the Secretary. The Secretary could permit the institution 
to retain the grant funds for that budget period and reduce the 
institution's award for the next budget period by that amount under 34 
CFR 75.253(c) or require the immediate return of the grant funds. 
Finally, if a fellow withdraws from his or her program of study before 
the completion of the academic term for which he or she received a 
stipend installment, the fellow would be required to return a prorated 
portion of the stipend installment to the institution at a time and in 
a manner determined by the Secretary. The Secretary believes that these 
requirements are necessary to ensure that fellowship funds are used for 
the intended purposes.

Section 641.51  What Training Is a Grantee Required To Provide to 
Prospective Faculty Development Fellows?

    The Secretary proposes to require each grantee that receives grant 
funds for prospective faculty development fellows to provide each 
fellow at least one academic term of supervised training. The Secretary 
believes that these fellows should be afforded with the opportunity to 
improve their teaching skills, in addition to the opportunity to 
acquire a doctoral degree. The Secretary proposes to define supervised 
training under proposed Sec. 641.7(b) to mean formal and informal 
training or instruction in teaching methods followed by the opportunity 
for a fellow to teach at the graduate or undergraduate level under the 
guidance and direction of senior faculty.

Section 641.52  What Records Are Required From a Grantee That Receives 
Grant Funds for Prospective and Experienced Faculty Development 
Fellowships?

    A grantee that receives a grant to fund prospective and experienced 
faculty development fellowships would be required to keep records 
necessary to establish the following: (1) That each fellow satisfies 
the eligibility requirements for the fellowships in Sec. 641.30; (2) 
the time and amount of all disbursements, and return of stipend 
payments by the grantee to the Secretary and the fellow to the grantee; 
and (3) that assurances provided in its application have been 
satisfied.
    After the completion of each academic year, a grantee would be 
required to provide to the Secretary a certification that the fellow is 
enrolled in, is making satisfactory progress in, and is devoting full 
time to, the doctoral program in which the fellow is enrolled. A 
grantee would be required to provide this certification prior to the 
receipt of additional grant funds for disbursement to a fellow. The 
Secretary believes that the proposed recordkeeping requirements are 
necessary for the proper administration of these fellowships.

Section 641.60  How Does a Grantee Disburse and Return Funds for 
Professional Development Fellowships?

    A grantee that receives grant funds for professional development 
fellowships would be required to disburse grant funds to a faculty 
professional development fellow in a timely manner (i.e., in a manner 
that ensures that funds are available to cover the allowable costs 
necessary to carry out the faculty professional development program). 
The Secretary believes that this requirement is necessary to ensure the 
proper disbursement of fellowship funds to these fellows.
    If a fellow withdraws from a professional development program 
before the completion of the program, the Secretary would permit a 
grantee to award the fellowship for the remainder of the project period 
to another individual who satisfies the eligibility requirements for 
the fellowship in Sec. 641.30. If a fellowship is vacated and the 
grantee does not award the fellowship to another individual, the 
grantee would be required to return unexpended grant funds to the 
Secretary, unless the Secretary authorizes the use of those funds for a 
subsequent budget period. The institution would also be required to 
return the unexpended grant funds at a time and in a manner determined 
by the Secretary. As in Sec. 641.50, the Secretary could permit the 
institution to retain the grant funds for that budget period and reduce 
the institution's award for the next budget period by that amount under 
34 CFR 75.253(c) or require the immediate return of the grant funds. 
The Secretary believes that these requirements are necessary to ensure 
that fellowship funds are used for the purposes intended.

Section 641.61  What Records Are Required From a Grantee That Receives 
Funds for Faculty Professional Development Fellowships?

    A grantee that receives funds for faculty professional development 
fellowships would be required to keep records necessary to establish 
the following: (1) That each fellow satisfies the eligibility 
requirements for the fellowship in Sec. 641.30; (2) the time and amount 
of all disbursements and return of grant funds; and (3) that all grant 
funds are used for allowable costs.

Section 641.70  What Agreement Must Be Made by Prospective and 
Experienced Faculty Development Fellows?

    Each prospective and experienced faculty development fellow would 
be required to enter into an agreement with the grantee in which he or 
she agrees to complete the requirements for a doctoral degree within 
the period in which the fellowship is awarded.
    If the fellow is a prospective faculty development fellow, the 
fellow would be required to enter into an agreement in which he or she 
agrees to teach full time, within five years after completing the 
doctoral degree for which the fellowship was awarded, for a period of 
not less than one year for each year for which financial assistance 
under this program was received, in a public or private nonprofit 
institution of higher education. This requirement implements section 
954(2) of the HEA.
    If the fellow is an experienced faculty development fellow, the 
fellow would be required to enter into an agreement in which he or she 
agrees, within five years after completing the doctoral degree for 
which the fellowship was awarded, to teach full time, for a period of 
not less than one year for each year for which financial assistance 
under this program was received, in a public or private nonprofit 
institution of higher education that has a significant minority 
enrollment. This requirement implements section 954(1) of the HEA.
    The Secretary would define significant minority enrollment in 
proposed Sec. 641.7(b) to mean an undergraduate enrollment of at least 
25 percent. The Secretary interprets the phrase ``significant minority 
enrollment'' to be the total enrollment of all minorities at an 
institution, rather than the enrollment of one particular minority 
group. The Secretary particularly solicits comment on this 
interpretation.
    A prospective or experienced faculty development fellow would be 
required to enter into an agreement in which he or she agrees to 
annually provide to the Secretary a certification that he or she is in 
compliance with the doctoral study and teaching terms of the agreement. 
Evidence that a fellow is complying with his or her teaching obligation 
would include a certification from the institution at which the fellow 
is teaching, stating that the fellow is employed as a full-time 
teacher. This requirement would implement section 954(3) of the HEA 
requiring a fellow to provide evidence of compliance with the teaching 
obligation connected to his or her fellowship.
    Finally, a fellow would be required to agree to repay the 
fellowship assistance received, in the event that he or she fails to 
fulfill the teaching obligation connected to his or her fellowship. 
This requirement implements section 954(4) of the HEA. The Secretary 
would also require repayment if a fellow fails to receive a doctoral 
degree within the period in which the fellowship is awarded. The 
purpose of these fellowships is to allow a fellow to acquire a doctoral 
degree. Therefore, the Secretary believes that a fellow should be 
required to agree to receive a doctoral degree as part of his or her 
reciprocal obligation for receiving the fellowship.

Section 641.71  What are the Requirements for a Prospective or 
Experienced Faculty Development Fellow To Receive Fellowship Payments?

    The grantee would be required to disburse grant funds to each 
prospective and experienced faculty development fellow who: (1) Is 
selected in accordance with the eligibility criteria established under 
proposed Sec. 641.30; (2) signs an agreement under proposed 
Sec. 641.70; (3) is enrolled as a full-time student in a program of 
doctoral study in an institution of higher education; and (4) is 
maintaining satisfactory progress towards a doctoral degree. The 
Secretary believes that these requirements are necessary for the proper 
administration of the program.

Section 641.72  What Are the Repayment Provisions for Prospective and 
Experienced Faculty Development Fellowships?

    If a fellow is found to be in noncompliance with the agreement 
entered into under proposed Sec. 641.70, the fellow would be required 
to: (1) Repay the amount of the grant funds received, prorated 
according to the fraction of the teaching obligation not completed; (2) 
pay a simple, per annum interest charge on the outstanding principal; 
and (3) pay all reasonable collection costs. This requirement 
implements section 955 of the HEA.
    Under the proposed regulations, a fellow required to repay his or 
her fellowship would enter repayment status on the first day of the 
first calendar month after the Secretary has determined that the fellow 
is no longer pursuing a course of study leading to a doctoral degree on 
a full-time basis and has not received a doctoral degree; the date the 
fellow informs the grantee or the Secretary that he or she does not 
plan to obtain a doctorate or to fulfill his or her teaching 
obligation; or the latest date on which a fellow must have begun 
teaching in order to have completed his or her teaching obligation 
within 5 years after completing the doctoral degree for which the 
fellowship was awarded. A fellow would be required to make monthly or 
quarterly payments to the Secretary that cover principal, interest, and 
reasonable collection costs according to a schedule established by the 
Secretary that calls for complete repayment within 10 years after the 
fellow enters repayment status, except that the amount repaid must 
amount annually to no less than $1,800 or the unpaid balance, whichever 
is less.
    The interest charge paid by a fellow would accrue from the date of 
the disbursement of the initial fellowship payment if: (1) The 
Secretary determines that the fellow is no longer pursuing a course of 
full-time study leading to a doctoral degree; or (2) the fellow informs 
the grantee or the Secretary that he or she does not plan to fulfill 
the teaching obligation under proposed Sec. 641.70(b). Otherwise, the 
interest charge would accrue from the latest date on which a fellow 
must have begun teaching in order to have completed his or her teaching 
obligation within 5 years after completing the degree for which the 
fellowship was awarded.
    The interest charge would be calculated annually for the program 
for the twelve-month period extending from July 1 of each year through 
June 30 of the subsequent year and be set at a rate that is the greater 
of the following rates established pursuant to section 427A of the HEA 
for the same twelve-month period: (1) The rate charged to new borrowers 
under the Robert T. Stafford Federal Student Loan Program (Title IV, 
Part B of the HEA); or (2) the rate charged to new borrowers under the 
Federal Supplemental Loans for Students and Federal PLUS Programs 
(section 428A and 428B of the HEA, respectively) as published in the 
Federal Register.
    For a fellow required to repay his or her fellowship, the interest 
charge applicable to the period extending from the date on which 
interest begins to accrue until the date on which the fellow's 
repayment period begins is adjusted annually and is set at the rate 
established for the program. The interest charge applicable during the 
repayment period would be the rate established for the program that is 
in effect on the date on which the fellow's repayment period begins.
    A fellow would not be required to make repayments amounting to more 
than $3,600 annually unless higher payments are needed to complete the 
entire repayment within the ten-year period in which the fellowship 
must be repaid. The Secretary believes that these repayment provisions 
are necessary for the proper administration of the program.

Section 641.73  What Are Grounds for Deferral From the Repayment 
Schedule?

    Section 956(a) of the HEA provides that a fellow shall not be 
considered in violation of the agreement to repay his or her fellowship 
during the time in which the fellow is: (1) Pursuing a full-time course 
of doctoral study; (2) serving, for a period not to exceed 3 years, as 
a member of the armed services of the United States; (3) temporarily 
totally disabled for a period of time not to exceed 3 years as 
established by sworn affidavit of a qualified physician; (4) seeking 
and unable to find full-time employment for a single period not to 
exceed 12 months; or (5) engaged in full-time employment as a teacher 
in a public or private nonprofit preschool, elementary or secondary 
school, or a public or private nonprofit preschool education program. 
The Secretary has implemented these statutory grounds for deferral in 
proposed Sec. 641.73.
    The Secretary also proposes to add the following grounds for 
deferral: (1) Serving as a Peace Corps volunteer or as a volunteer 
under the Domestic Service Volunteer Act of 1973; and (2) the inability 
to secure employment for a period of time not to exceed 12 months 
because the fellow is providing care, such as continuous nursing, 
required by a spouse or another member of the fellow's immediate family 
who is disabled. The Secretary proposes these additional grounds for 
deferral pursuant to section 956(a)(7) of the HEA which authorizes the 
Secretary to prescribe further grounds for deferral through regulation.
    During the time a fellow meets any of the grounds for deferral 
listed above, he or she would not be required to make repayments and 
interest would not accrue during this period. The Secretary would also 
extend the 10-year repayment period established for repayment under 
proposed Sec. 641.72(c)(2) by a period equal to the length of time a 
fellow meets any of the grounds for deferral.
    A fellow would be required to provide a certification annually to 
the Secretary that he or she qualifies for one or more of the 
conditions for deferral. This requirement is provided for in proposed 
Sec. 641.73(d).
    Finally, section 956(b) of the HEA provides that a fellow shall be 
excused from repayment of any fellowship assistance received under this 
program if the fellow becomes permanently totally disabled as 
established by sworn affidavit of a qualified physician. This provision 
is implemented in proposed Sec. 641.73. The Secretary also proposes 
under Sec. 641.73(e) that a fellow be excused from repayment if the 
fellow has died, as established by a death certificate or other 
evidence conclusive under State law.

Section 641.74  What Exceptions Apply to the Agreement To Complete the 
Requirements for Doctoral Study Within the Period in Which the 
Fellowship is Awarded?

    A prospective or an experienced fellow would not be in violation of 
the agreement, under proposed Sec. 641.70(a), to complete the 
requirements for a doctoral degree within the period for which the 
fellowship is awarded if the fellow is: (1) Serving, for a period not 
to exceed 3 years, as a member of the armed services of the United 
States; (2) temporarily totally disabled for a period not to exceed 3 
years as established by sworn affidavit of a qualified physician; (3) 
unable to continue study for a period of time not to exceed 12 months 
because the fellow is providing care, such as continuous nursing, 
required by a spouse or another member of the fellow's immediate family 
who is disabled; or (4) enrolled in a doctoral study program full-time 
and is making satisfactory progress towards receiving the doctoral 
degree. These proposed exceptions to Sec. 641.70(a) are based on the 
Secretary's authority in section 956(a)(7) of the HEA to establish 
additional exceptions to fellows' repayment obligations. The Secretary 
believes that these exceptions are reasonable grounds to temporarily 
excuse a fellow's non-compliance with the agreement entered into under 
Sec. 641.70(a).
    The proposed exceptions differ from the proposed grounds for 
deferral in proposed Sec. 641.73. An individual that satisfies one of 
the grounds for deferral would have his or her repayment and interest 
obligations tolled, but would still be in breach of the agreement under 
Sec. 641.70 and responsible for repayment of the fellowship assistance. 
An individual who satisfies one of the exceptions, meanwhile, would not 
be in breach of his or her agreement.

Executive Order 12866

1. Assessment of Costs and Benefits

    These proposed regulations have been reviewed in accordance with 
Executive Order 12866. Under the terms of the order the Secretary has 
assessed the potential costs and benefits of this regulatory action.
    The potential costs associated with the proposed regulations are 
those resulting from statutory requirements and those determined by the 
Secretary to be necessary for administering this program effectively 
and efficiently. Burdens specifically associated with information 
collection requirements, if any, are identified and explained elsewhere 
in this preamble under the heading Paperwork Reduction Act of 1980.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of these proposed regulations, the Secretary has 
determined that the benefits of the proposed regulations justify the 
costs.
    To assist the Department in complying with the specific 
requirements of Executive Order 12866, the Secretary invites comment on 
whether there may be further opportunities to reduce any potential 
costs or increase potential benefits resulting from these proposed 
regulations without impeding the effective and efficient administration 
of the program.

2. Clarity of the Regulations

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand.
    The Secretary invites comments on how to make these proposed 
regulations easier to understand, including answers to questions such 
as the following: (1) Are the requirements in the proposed regulations 
clearly stated? (2) Do the regulations contain technical terms or other 
wording that interferes with their clarity? (3) Does the format of the 
regulations (grouping and order of sections, use of headings, 
paragraphing etc.) aid or reduce their clarity? Would the regulations 
be easier to understand if they were divided into more (but shorter) 
sections? (A ``section'' is preceded by the symbol ``Sec. '' and a 
numbered heading; for example, Sec. 641.1 What is the Faculty 
Development Fellowship Program?) (4) Is the description of the 
regulations in the ``Supplementary Information'' section of this 
preamble helpful in understanding the regulations? How could this 
description be more helpful in making the regulations easier to 
understand? (5) What else could the Department do to make the 
regulations easier to understand?
    A copy of any comments that concern how the Department could make 
these proposed regulations easier to understand should be sent to 
Stanley M. Cohen, Regulations Quality Officer, U.S. Department of 
Education, 400 Maryland Avenue, SW. (room 5125, FOB-6), Washington, DC 
20202-2241.

Regulatory Flexibility Act Certification

    The Secretary certifies that these proposed regulations would not 
have a significant economic impact on a substantial number of small 
entities.
    The small entities that would be affected by these proposed 
regulations are institutions of higher education receiving Federal 
funds under this program. However, the regulations would not have a 
significant economic impact on the institutions affected because the 
regulations would not impose excessive regulatory burdens or require 
unnecessary Federal supervision. The regulations would impose minimal 
requirements to ensure the proper accounting for expenditures of 
program funds.

Paperwork Reduction Act of 1980

    Sections 641.11, 641.21, 641.22, 641.24, 641.52, and 641.61 contain 
information collection requirements. As required by the Paperwork 
Reduction Act of 1980, the Department of Education will submit a copy 
of these sections to the Office of Management and Budget (OMB) for its 
review. (44 U.S.C. 3504(h))
    Institutions of higher education are eligible to apply for grants 
under these regulations. The Department needs and uses the information 
to make grants. Annual public reporting burden for this collection of 
information is estimated to average 32 hours per response for 100 
respondents, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    Organizations and individuals desiring to submit comments on the 
information collection requirements should direct them to the Office of 
Information and Regulatory Affairs, OMB, room 3002, New Executive 
Office Building, Washington, DC 20503; Attention: Daniel J. Chenok.

Intergovernmental Review

    This program is subject to the requirements of Executive Order 
12372 and the regulations in 34 part 79. The objective of the Executive 
order is to foster an intergovernmental partnership and a strengthened 
federalism by relying on processes developed by State and local 
governments for coordination and review of proposed Federal financial 
assistance.
    In accordance with the order, this document is intended to provide 
early notification of the Department's specific plans and actions for 
this program.

Invitation To Comment

    Interested persons are invited to submit comments and 
recommendations regarding these proposed regulations.
    All comments submitted in response to these proposed regulations 
will be available for public inspection, during and after the comment 
period, in room 3022, ROB-3, 7th and D Streets SW., Washington, DC, 
between the hours of 8:30 a.m. and 4 p.m., Monday through Friday of 
each week except Federal holidays.

Assessment of Educational Impact

    The Secretary particularly requests comments on whether the 
proposed regulations in this document would require transmission of 
information that is being gathered by or is available from any other 
agency or authority of the United States.

List of Subjects in 34 CFR Part 641

    College and universities, Grant program-education, Reporting and 
recordkeeping requirements.

    Dated: April 4, 1994.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.

(Catalog of Federal Domestic Assistance Number 84-271A--Faculty 
Development Fellowship Program)
    The Secretary proposes to amend Title 34 of the Code of Federal 
Regulations by adding a new part 641 to read as follows:

Part 641--FACULTY DEVELOPMENT FELLOWSHIP PROGRAM

Subpart A--General

Sec.
641.1  What is the Faculty Development Fellowship Program?
641.2  Who is eligible for a grant to fund prospective and 
experienced faculty development fellowships?
641.3  Who is eligible for a grant to fund faculty professional 
development fellowships?
641.4  What activities may the Secretary fund?
641.5  What is included in the grant?
641.6  What regulations apply?
641.7  What definitions apply?
641.8  What is the duration of a project period?

Subpart B--How Does One Apply for a Grant?

641.10  How does an applicant apply for a grant to fund prospective 
or experienced faculty development fellowships?
641.11  How does an applicant apply for a grant to fund faculty 
professional development fellowships?

Subpart C--How Does the Secretary Make an Award?

641.20  How does the Secretary evaluate an application?
641.21  What selection criteria does the Secretary use to evaluate 
an application for a grant to fund prospective and experienced 
faculty development fellowships?
641.22  What selection criteria does the Secretary use to evaluate 
an application for a grant to fund faculty professional development 
fellowships?
641.23  What additional factors does the Secretary consider?
641.24  What priorities does the Secretary establish for grants to 
fund prospective and experienced faculty development fellowships?
641.25  What other priorities does the Secretary establish?

Subpart D--How Are Fellows Selected?

641.30  How does a grantee select fellows?
641.31  How does an individual apply for a fellowship?
641.32  What special rule applies to the distribution of 
fellowships?
Subpart E--How Does the Secretary Distribute Funds?
641.40  What is the amount of a stipend awarded to prospective and 
experienced faculty development fellows?
Subpart F--What Are the Administrative Responsibilities of the Grantee 
That Receives Funds for Prospective and Experienced Faculty Development 
Fellowships?
641.50  How does a grantee disburse and return funds for prospective 
or experienced faculty development fellowships?
641.51  What training is a grantee required to provide to 
prospective faculty development fellows?
641.52  What records are required from a grantee that receives grant 
funds for prospective or experienced faculty development 
fellowships?
Subpart G--What Are the Administrative Responsibilities of the Grantee 
That Receives Funds for Faculty Professional Development Fellowships?
641.60  How does a grantee disburse and return funds for faculty 
professional development fellowships?
641.61  What records are required from a grantee that receives funds 
for faculty professional development fellowships?
Subpart H--What Conditions Apply to Prospective and Experienced Faculty 
Development Fellowships?
641.70  What agreement must be made by prospective and experienced 
faculty development fellows?
641.71  What are the requirements for a prospective or experienced 
faculty development fellow to receive fellowship payments?
641.72  What are the repayment provisions for prospective and 
experienced faculty development fellowships?
641.73  What are grounds for deferral from the repayment schedule?
641.74  What exceptions apply to the agreement to complete the 
requirements for doctoral study within the period in which the 
fellowship is awarded?

    Authority: 20 U.S.C. 1134r-1134r-6, unless otherwise noted.

Subpart A--General


Sec. 641.1  What is the Faculty Development Fellowship Program?

    (a) The Faculty Development Fellowship Program provides grants to 
institutions of higher education, consortia of institutions, and 
consortia of institutions and nonprofit organizations to fund 
fellowships for individuals from underrepresented minority groups to 
enter or continue in the higher education professorate.
    (b) Under the program, the Secretary awards grants for the 
following types of fellowships:
    (1) Prospective faculty development fellowships, as described in 
Sec. 641.4(a).
    (2) Experienced faculty development fellowships, as described in 
Sec. 641.4(b).
    (3) Faculty professional development fellowships, as described in 
Sec. 641.4(c).

(Authority: 20 U.S.C. 1134r)


Sec. 641.2  Who is eligible for a grant to fund prospective and 
experienced faculty development fellowships?

    (a) The Secretary awards grants for prospective and experienced 
faculty development fellowships to the following:
    (1) An institution with a demonstrated record of enhancing the 
access to graduate education of individuals from underrepresented 
minority groups.
    (2) A consortium of institutions with a demonstrated record of 
enhancing the access to graduate education of individuals from 
underrepresented minority groups.
    (3) A consortium of nonprofit organizations and institutions with a 
demonstrated record of enhancing the access to graduate education of 
individuals from underrepresented minority groups.
    (b) A consortium has a demonstrated record of enhancing the access 
to graduate education of individuals from underrepresented minority 
groups if each institution in the consortium that intends to offer a 
program of doctoral study has a demonstrated record of enhancing the 
access to graduate education of individuals from underrepresented 
minority groups.
    (c) An institution that intends to offer a program of doctoral 
study has a demonstrated record of enhancing access to graduate 
education if it provides evidence of the following:
    (1) A social and academic environment that is supportive of the 
academic success of students and faculty who are members of 
underrepresented minority groups.
    (2) Procedures to identify, recruit, and enhance the access of 
individuals from underrepresented minority groups to graduate 
education.
    (3) A successful record of completion of doctoral degree programs 
by individuals from underrepresented minority groups.
    (4) A successful record of assisting individuals from 
underrepresented minority groups who receive doctoral degrees enter the 
higher education professorate.
    (d) The Secretary does not award a grant under this part for study 
at a school or department of divinity.

(Authority: 20 U.S.C. 1134, 1134r)


Sec. 641.3  Who is eligible for a grant to fund faculty professional 
development fellowships?

    (a) The Secretary awards grants for faculty professional 
development fellowships to the following:
    (1) An institution with a demonstrated record of enhancing the 
professional development of faculty from underrepresented minority 
groups.
    (2) A consortium of institutions with a demonstrated record of 
enhancing the professional development of faculty from underrepresented 
minority groups.
    (3) A consortium of nonprofit organizations and institutions with a 
demonstrated record of enhancing the professional development of 
faculty from underrepresented minority groups.
    (b) A consortium has a demonstrated record of enhancing the 
professional development of faculty from underrepresented minority 
groups if each institution and nonprofit organization in the consortium 
that intends to offer a professional development program has a 
demonstrated record of enhancing the professional development of 
faculty from underrepresented minority groups.
    (c) An institution or nonprofit organization that intends to offer 
a professional development program has a demonstrated record of 
enhancing the professional development of faculty from underrepresented 
minority groups if it provides evidence that it has policies or 
procedures for assisting faculty from underrepresented minority groups 
to participate in professional development programs. This evidence, 
includes, but is not limited to the following:
    (1) An academic environment that is responsive to advancing the 
careers of underrepresented minorities.
    (2) Programs that have been designed to provide opportunities for 
faculty from underrepresented minority groups to improve instructional 
methodology.
    (3) A successful record of providing opportunities for faculty from 
underrepresented minority groups to attend workshops, seminars, and 
other professional development activities relating to their academic 
careers.
    (d) The Secretary does not award a grant under this part for study 
at a school or department of divinity.

(Authority: 20 U.S.C. 1134r)


Sec. 641.4  What activities may the Secretary fund?

    The Secretary awards grants to fund the following types of 
fellowships:
    (a) Prospective faculty development fellowships: Fellowships for 
talented baccalaureate degree recipients from underrepresented minority 
groups who have financial need and who wish to obtain a doctoral degree 
and enter the higher education professorate.
    (b) Experienced faculty development fellowships: Fellowships for 
talented faculty from underrepresented minority groups who wish to 
continue in the higher education professorate and obtain a doctoral 
degree.
    (c) (1) Faculty professional development fellowships: Fellowships 
for talented faculty from underrepresented minority groups who wish to 
participate in short-term professional development programs, including 
seminars, conferences, and workshops, specifically designed to enhance 
their skills and careers.
    (2) Grant funds for faculty professional development fellowships 
may not be used to fund study leading to a doctoral degree.

(Authority: 20 U.S.C. 1134r)


Sec. 641.5  What is included in the grant?

    (a) Each grant to fund prospective and experienced faculty 
development fellowships consists of the stipends paid by the Secretary 
through the grantee to fellows. The stipend provides an allowance to a 
fellow for the fellow's (and his or her dependents') subsistence and 
other expenses.
    (b) (1) Each grant to fund faculty professional development 
fellowships consists of the allowable costs of the fellows' 
participation in professional development programs.
    (2) For the purposes of paragraph (b)(1) of this section, allowable 
costs are the following:
    (i) Costs of instruction, including fees for materials and 
supplies.
    (ii) Out-of-town travel expenses, excluding foreign travel.
    (iii) Per diem expenses for food and lodging during the period of 
instruction.

(Authority: 20 U.S.C. 1134r, 1134r-1)


Sec. 641.6  What regulations apply?

    The following regulations apply to the Faculty Development 
Fellowship Program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 82 (New Restrictions on Lobbying).
    (6) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)).
    (7) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part.

(Authority: 20 U.S.C. 1134r)


Sec. 641.7  What definitions apply?

    (a) Definitions in EDGAR. The following term(s) used in this part 
are defined in 34 CFR 77.1:

Applicant
Application
Award
Budget
Budget Period
Department
EDGAR
Grant
Grantee
Nonprofit
Project
Project Period
Secretary

    (b) Other Definitions: The following definitions also apply to this 
part:
    Academic field means an area of study in an academic department 
within an institution of higher education other than a school or 
department of divinity.
    Academic year means the 12-month period beginning with the fall 
instructional term of the institution.
    Consortium of institutions of higher education means two or more 
institutions of higher education that have entered into a cooperative 
arrangement for the purpose of carrying out common objectives.
    Doctoral study means a postbaccalaureate program of study leading 
to a degree in any academic field of graduate study that requires a 
dissertation.
    Fellow means a recipient of a fellowship under this part.
    Fellowship means an award made by a grantee to an individual under 
this part.
    Financial need means the fellow's financial need as determined 
under Title IV, Part F, of the HEA for the period of the fellow's 
enrollment in the approved field of doctoral study for which the 
fellowship was awarded.
    HEA means the Higher Education Act of 1965, as amended.
    Historically black colleges and universities (HBCUs) means those 
institutions listed in 34 CFR 608.2 (Strengthening Historically Black 
Colleges and Universities Program) and 34 CFR 609.2 (Strengthening 
Historically Black Graduate Institutions Program).
    Institution of higher education (institution) means an institution 
of higher education, other than a school or department of divinity, as 
defined in section 1201(a) of the HEA.
    Minority means Alaskan Native, American Indian, Asian-American, 
Black (African-American), Hispanic American, Native Hawaiian, or 
Pacific Islander.
    Predominantly black colleges and universities means those 
institutions whose undergraduate enrollment consists of more than fifty 
percent black students.
    Satisfactory progress means that a fellow meets or exceeds the 
institution's criteria and standards established for a student's 
continued status as a candidate for the degree in the academic field 
for which the fellowship was awarded.
    School or department of divinity means an institution, or an 
academic department of an institution, whose program is specifically 
for the education of students to prepare them to become ministers of 
religion or to enter into some other religious vocation or to prepare 
them to teach theological subjects.
    Significant enrollment means an undergraduate enrollment of at 
least 25 percent.
    Supervised training means formal and informal training or 
instruction in teaching methods followed by the opportunity for a 
fellow to teach at the graduate or undergraduate level under the 
guidance and direction of senior faculty.
    Temporarily totally disabled means the inability by virtue of an 
injury or illness to be gainfully employed during a reasonable period 
of recovery.
    Underrepresented means proportionate representation, as measured by 
degree recipients, that is less than the proportionate representation 
in the general population--
    (i) As indicated by--
    (A) The most current edition of the Department's Digest of 
Educational Statistics;
    (B) The National Research Council's Doctorate Recipients from 
United States Universities; or
    (C) Other standard statistical references, as announced annually in 
the Federal Register notice inviting applications for new awards under 
this program; or
    (ii) As documented by national survey data submitted to and 
accepted by the Secretary on a case-by-case basis.

(Authority: 20 U.S.C. 1134r)


Sec. 641.8  What is the duration of a project period?

    (a) The maximum duration of a grant to fund prospective or 
experienced faculty development fellowships is 60 months.
    (b) The maximum duration of a grant to fund faculty professional 
development fellowships is 36 months.

(Authority: 20 U.S.C. 1134r).

Subpart B--How Does One Apply for a Grant?


Sec. 641.10  How does an applicant apply for a grant to fund 
prospective and experienced faculty development fellowships?

    To apply for a grant to fund prospective and experienced faculty 
development fellowships, an applicant shall submit an application 
that--
    (a) Responds to the appropriate selection criteria in Sec. 641.21; 
and
    (b) Contains--
    (1) The applicant's plan for identifying and recruiting talented 
and financially needy baccalaureate degree recipients or talented 
faculty from underrepresented minority groups who may participate in 
the project;
    (2) A description of the program or programs of doctoral study for 
which it will award fellowships;
    (3) The applicant's plan for using minority faculty and other 
faculty as advisors, mentors, and academic resources in support of the 
project;
    (4) A description of other resources of the applicant, including 
tuition waivers, assistantships, or financial aid other than loans, 
that the applicant shall make available to fellows;
    (5) If the applicant is a consortium--
    (i) The signed agreement listing the--
    (A) Names of the undergraduate institutions that are historically 
or predominantly black colleges and universities or other institutions 
with significant enrollments of individuals from minority groups that 
have agreed to cooperate with the applicant to carry out the purposes 
of the project; and
    (B) Names of the other institutions or nonprofit organizations 
included in the consortium; and
    (ii) The terms of cooperation among the members of the consortium;
    (6)(i) If the applicant is applying for a grant to fund prospective 
faculty development fellowships, assurances that the applicant will 
provide at least one academic term of supervised training in 
instruction to each fellow during the period of the fellowship; or
    (ii) If the applicant is applying for a grant to fund experienced 
faculty development fellowships, assurances that the applicant will 
provide an opportunity for each fellow to improve his or her 
instructional methods;
    (7) Assurances that the applicant will ensure that fellows are 
making satisfactory progress in, and devoting full time to, the 
doctoral study program in which they are enrolled; and
    (8) Evidence that each institution that plans to offer a program of 
doctoral study to fellows has a demonstrated record of enhancing the 
access to graduate education of individuals from underrepresented 
minority groups, as required in Sec. 641.2(c).

(Authority: 20 U.S.C. 1134r-2)


Sec. 641.11  How does an applicant apply for a grant to fund faculty 
professional development fellowships?

    To apply for a grant to fund faculty professional development 
fellowships, an applicant shall submit an application that--
    (a) Responds to the selection criteria in Sec. 641.22; and
    (b) Contains--
    (1) The applicant's plan for identifying and recruiting talented 
faculty from underrepresented minority groups who wish to participate 
in professional development programs specifically designed to advance 
their careers;
    (2) A description of the program or programs of professional 
development the applicant plans to offer, and the ways in which the 
program or programs are specifically designed to advance the careers of 
faculty from underrepresented minority groups;
    (3) The applicant's plan for using minority and other faculty as 
advisors, mentors, and academic resources in support of the project;
    (4) A description of other resources of the applicant that the 
applicant shall make available to fellows; and
    (5) If the applicant is a consortium--
    (i) The signed agreement listing the--
    (A) Names of the undergraduate institutions that are historically 
or predominantly black colleges and universities or other institutions 
with significant enrollments of individuals from minority groups that 
have agreed to cooperate to carry out the purposes of the project; and
    (B) Names of the other institutions or nonprofit organizations 
included in the consortium; and
    (ii) The terms of cooperation among the members of the consortium; 
and
    (6) Evidence that each institution or nonprofit organization that 
plans to offer a faculty professional development program has a 
demonstrated record of enhancing the professional development of 
faculty from underrepresented minority groups, as required in 
Sec. 641.3(c).

(Authority: 20 U.S.C. 1134r)

Subpart C--How Does the Secretary Make an Award?


Sec. 641.20  How does the Secretary evaluate an application?

    (a) The Secretary evaluates an application for a grant to fund 
prospective or experienced faculty development fellowships on the basis 
of the selection criteria in Sec. 641.21, the additional considerations 
in Sec. 641.23, and the priorities in Sec. 641.24.
    (b) The Secretary evaluates an application for a grant to fund 
faculty professional development fellowships on the basis of the 
selection criteria in Sec. 641.22 and the additional considerations in 
Sec. 641.23.
    (c) The Secretary awards up to 100 points for the selection 
criteria in Sec. 641.21 and up to 100 points for the selection criteria 
in Sec. 641.22.
    (d) The maximum possible score for each criterion is indicated in 
parentheses.

(Authority: 20 U.S.C. 1134r-2)


Sec. 641.21  What selection criteria does the Secretary use to evaluate 
an application for a grant to fund prospective or experienced faculty 
development fellowships?

    The Secretary uses the following criteria to evaluate an 
application for a grant to fund prospective or experienced faculty 
development fellowships:
    (a) Applicant's commitment. (24 points) The Secretary reviews each 
application to determine the overall strength of the applicant's 
commitment to meet the needs of fellows, including consideration of the 
extent to which--
    (1) The social and academic environment of each institution that 
plans to offer a program of doctoral study is supportive of the 
academic success of students and faculty who are members of 
underrepresented minority groups;
    (2) The applicant plans to identify, recruit, and enhance the 
access of individuals from underrepresented minority groups to graduate 
education;
    (3) Each institution that plans to offer a program of doctoral 
study has a successful record of individuals from underrepresented 
minority groups completing doctoral degree programs;
    (4) Each institution that plans to offer a program of doctoral 
study has a successful record of assisting individuals from 
underrepresented minority groups who receive doctoral degrees to enter 
the higher education professorate;
    (5) If the applicant is a consortium, the applicant has the 
commitment of institutions that are historically and predominantly 
black or other institutions with significant enrollments of individuals 
from underrepresented minority groups to cooperate with the applicant 
to carry out the purposes of the project; and
    (6) Individuals from underrepresented minority groups are 
represented among the administrators and faculty of each institution 
that plans to offer a program of doctoral study.
    (b) Meeting the purposes of the program. (14 points). The Secretary 
reviews each application to determine how well the project will meet 
the purposes of the program, including the extent to which--
    (1) The applicant's general and specific objectives for the project 
are realistic and measurable; and
    (2) The applicant's objectives for the project seek to increase the 
number of individuals from underrepresented minority groups to enter or 
continue in the higher education professorate.
    (c) Quality of implementation strategy. (32 points). The Secretary 
reviews each application to determine--
    (1) The potential effectiveness of the applicant's plan for 
identifying and recruiting, to participate in the project, talented--
    (i) Faculty; or
    (ii) Baccalaureate degree recipients (8 points);
    (2) The quality of the program or programs of doctoral study that 
the applicant plans to offer, including--
    (i) If the applicant applies for a grant to fund prospective 
faculty development fellowships, one academic term of supervised 
teaching opportunities for these fellows; or
    (ii) If the applicant applies for a grant to fund experienced 
faculty development fellowships, opportunities for fellows to improve 
their instructional methods (14 points);
    (3) The quality of the applicant's policies and procedures to 
monitor whether a fellow is making satisfactory progress towards 
receiving a doctoral degree (5 points); and
    (4) The extent to which the policies and procedures the applicant 
proposes to institute for administering the project are likely to 
ensure efficient and effective project implementation, including 
assistance to and oversight of the project director (5 points).
    (d) Quality of key personnel. (12 points).
    (1) The Secretary reviews each application to determine the quality 
of key personnel the applicant plans to use on the project, including--
    (i) The qualifications of the project director (3 points);
    (ii) The qualifications of each of the key faculty to be used on 
the project (4 points);
    (iii) The time that each person referred to in paragraphs (d)(1)(i) 
and (ii) of this section will commit to the project (3 points); and
    (iv) How the applicant, as part of its nondiscriminatory employment 
practices, will ensure that its personnel are selected without regard 
to race, color, national origin, religion, gender, age, or disabling 
condition, except pursuant to a lawful affirmative action plan (2 
points).
    (2) To determine personnel qualifications under paragraphs 
(d)(1)(i) and (ii) of this section, the Secretary considers--
    (i) The past work experiences and training of key professional 
personnel as directly related to the stated project purposes and 
objectives; and
    (ii) Any other qualifications of the key professional personnel 
that pertain to the quality of the project.
    (e) Adequacy of resources. (9 points). The Secretary reviews each 
application to determine the extent of the resources the applicant 
plans to make available to fellows, including--
    (1) Tuition waivers, assistantships, or financial aid other than 
loans that will be available to fellowship recipients;
    (2) Use of faculty from underrepresented minority groups and other 
faculty as advisors, mentors, and academic resources in support of the 
project; and
    (3) Space and equipment.
    (f) Evaluation plan. (9 points). The Secretary reviews each 
application to determine the quality of the evaluation plan for the 
project, including the extent to which the applicant's evaluation 
methods--
    (1) Relate to the specific goals and measurable objectives of the 
project;
    (2) Include both process and product evaluation measures that are 
objective and designed to produce data that are quantifiable; and
    (3) Describe how the applicant will analyze and report the data so 
that it can make adjustments and improvements on a regular basis.

(Authority: 20 U.S.C. 1134r-2)


Sec. 641.22  What selection criteria does the Secretary use to evaluate 
an application for a grant to fund faculty professional development 
fellowships?

    The Secretary uses the following criteria to evaluate an 
application for a grant to fund faculty professional development 
fellowships:
    (a) Meeting the purposes of the program. (20 points). The Secretary 
reviews each application to determine how well the project will meet 
the purposes of the program, including the extent to which--
    (1) The applicant proposes a project specifically designed to 
advance the careers of faculty from underrepresented minority groups; 
and
    (2) The applicant's general and specific objectives for the project 
are realistic and measurable.
    (b) Quality of implementation strategy. (40 points). The Secretary 
reviews each application to determine--
    (1) The potential effectiveness of the applicant's plan for 
identifying and recruiting faculty from underrepresented minority 
groups who wish to remain in the higher education professorate and 
participate in a professional development program specifically designed 
to advance their careers (10 points);
    (2) The quality of the program or programs to be offered to the 
faculty and the extent to which these programs are structured to 
advance the careers of underrepresented minorities (15 points);
    (3) The extent to which the applicant plans to measure or monitor 
whether the faculty is benefitting from the program or programs 
designed to advance their careers (5 points);
    (4) The extent to which the program or programs include 
opportunities for faculty to improve their teaching methods (5 points); 
and
    (5) The extent to which individuals from underrepresented minority 
groups are represented among the administrators and faculty of the 
project (5 points).
    (c) Grant management. (12 points). The Secretary reviews each 
application to determine the applicant's ability to provide for the 
overall administration of the grant award, including providing 
assistance to and oversight of the project director in order to achieve 
the stated project purposes and objectives.
    (d) Adequacy of resources. (9 points). The Secretary reviews each 
application to determine the adequacy of resources the applicant plans 
to devote to the project, including--
    (1) The use of faculty from underrepresented minority groups and 
other faculty as advisors, mentors, and academic resources in support 
of the project; and
    (2) Space, materials, and equipment.
    (e) Budget. (10 points). The Secretary reviews each application to 
determine the extent to which--
    (1) The budget is adequate to support the project; and
    (2) Costs are reasonable in relation to the objectives of the 
project.
    (f) Evaluation plan. (9 points). The Secretary reviews each 
application to determine the quality of the evaluation plan for the 
project, including the extent to which the applicant's evaluation 
methods--
    (1) Relate to the specific goals and measurable objectives of the 
project;
    (2) Include both process and product evaluation measures that are 
objective and designed to produce data that are quantifiable; and
    (3) Describe how the applicant will analyze and report the data so 
that it can make adjustments and improvements on a regular basis.

(Authority: 20 U.S.C. 1134r-2)


Sec. 641.23  What additional factors does the Secretary consider?

    In awarding grants to fund prospective faculty development 
fellowships, experienced faculty development fellowships, and faculty 
professional development fellowships, the Secretary ensures--
    (a) An equitable geographic distribution of grants;
    (b) That both public and private institutions are fairly 
represented among grantees; and
    (c) That there is an equitable distribution of fellowships among 
underrepresented minority groups.

(Authority: 20 U.S.C. 1134r)


Sec. 641.24  What priorities does the Secretary establish for grants to 
fund prospective and experienced faculty development fellowships?

    (a) In awarding grants to fund prospective and experienced faculty 
development fellowships, the Secretary awards 3 additional points to 
applicants whose applications describe projects that--
    (1) Provide each fellow--
    (i) A tuition waiver; and
    (ii)(A) A minimum $2,000 in support beyond the stipend received by 
each fellow under Sec. 641.4(a) or (b); or
    (B) Additional financial support in conjunction with teaching or 
research activities that are part of the fellow's doctoral program;
    (2) Provide additional financial support to each fellow from non-
Federal resources, either in cash or in-kind, such as contributions 
from the business community and civic organizations;
    (3) Emphasize courses of study leading to the doctoral degrees in 
disciplines where minorities are underrepresented; and
    (4) Describe steps to ensure that a fellow will teach at an 
institution where minority undergraduate students are likely to benefit 
from the educational experience and academic achievement of the fellow.
    (b) (1) The Secretary may waive all or any portion of the 
requirements in paragraphs (a)(1) of this section upon the request of 
any institution that has been designated as an eligible institution 
under Title III of the Act in the year in which the institution, or the 
consortium of which the institution is a member, is applying for a 
grant under this program.
    (2) In the case of a consortium, the waiver in paragraph (b)(1) of 
this section applies only to the eligible Title III institution(s) and 
not to any other member of the consortium.

(Authority: 20 U.S.C. 1134r)


Sec. 641.25  What other priorities does the Secretary establish?

    (a) The Secretary may give absolute priority to applications for 
grants to fund--
    (1) Prospective faculty development fellowships;
    (2) Experienced faculty development fellowships;
    (3) Faculty professional development fellowships; or
    (4) Two or more of the categories of fellowships listed in 
paragraphs (a)(1), (2), and (3) of this section.
    (b) Each year, the Secretary announces the absolute priority under 
paragraph (a) of this section in a notice inviting applications for 
this program published in the Federal Register.

(Authority: 20 U.S.C. 1134r)

Subpart D--How are Fellows Selected?


Sec. 641.30  How does a grantee select fellows?

    In selecting individuals to receive fellowships, a grantee shall 
consider only individuals who are--
    (a) Identified under Sec. 641.4; and
    (b) (1) United States citizens or nationals;
    (2) Permanent residents of the United States;
    (3) In the United States for other than a temporary purpose and 
intend to become citizens or permanent residents; or
    (4) Permanent residents of the Trust Territory of the Pacific 
Islands (Palau).

(Authority: 20 U.S.C. 1134, 1144a)


Sec. 641.31  How does an individual apply for a fellowship?

    An individual shall apply directly to the grantee.

(Authority: 20 U.S.C. 1134)


Sec. 641.32  What special rule applies to the distribution of 
fellowships?

    (a) Each grantee receiving a grant to fund prospective faculty 
development fellowships shall ensure that there is an equitable 
distribution of fellowships among underrepresented minority groups. For 
the purposes of this paragraph, an equitable distribution means the 
distribution of fellowships in a manner that reflects the 
representation of eligible individuals from underrepresented minority 
groups applying for prospective faculty development fellowships from 
each grantee.
    (b) Each grantee receiving a grant to fund experienced faculty 
development fellowships shall ensure that there is an equitable 
distribution of fellowships among underrepresented minority groups. For 
purposes of this paragraph, an equitable distribution means the 
distribution of fellowships in a manner that reflects the 
representation of underrepresented minority groups among eligible non-
doctoral degree bearing faculty applying for experienced faculty 
development fellowships at each institution from which fellows are 
selected.
    (c) Each grantee receiving a grant to fund faculty professional 
development fellowships shall ensure that there is an equitable 
distribution of fellowships among underrepresented minority groups. For 
the purposes of this paragraph, an equitable distribution means the 
distribution of fellowships in a manner that reflects the 
representation of underrepresented minority groups among eligible 
members of the faculty applying for faculty professional development 
fellowships at each institution from which fellows are selected.
    (d) Nothing in paragraphs (a), (b), or (c) of this section requires 
a grantee to grant preference or disparate treatment to the members of 
one group because the members of a group are not receiving fellowships 
under this part that are in proportion to their representation in any 
community, State, section, or other area.

(Authority: 20 U.S.C. 1134r)

Subpart E--How Does the Secretary Distribute Funds?


Sec. 641.40  What is the amount of a stipend awarded to prospective and 
experienced faculty development fellows?

    (a) The grantee shall pay the fellow a stipend at a level of 
support equal to that provided by the National Science Foundation 
graduate fellowships or the fellow's demonstrated level of financial 
need, whichever is less.
    (b) The Secretary announces the amount of the maximum stipend 
awarded to graduate fellowship recipients in a notice published in the 
Federal Register.

(Authority: 20 U.S.C. 1134r-1)

Subpart F--What Are the Administrative Responsibilities of the 
Grantee that Receives Funds for Prospective and Experienced Faculty 
Development Fellowships?


Sec. 641.50  How does a grantee disburse and return funds for 
prospective or experienced faculty development fellowships?

    (a) A grantee shall disburse a stipend to a prospective or 
experienced faculty development fellow in accordance with the regular 
payment schedule of the institution in which the fellow is enrolled, 
but shall not make less than one payment per academic term.
    (b) If a fellow withdraws from an institution or completes his or 
her program of study before the completion of an academic term for 
which he or she received a stipend installment, the grantee may award 
the fellowship for the remainder of the project period to another 
individual who satisfies the requirements in Sec. 641.30.
    (c) If a fellowship is vacated and the grantee does not award the 
fellowship to another individual, the grantee shall return unexpended 
stipend funds to the Secretary, unless the Secretary authorizes the use 
of those funds for a subsequent budget period. The institution shall 
return the unexpended stipend funds at a time and in a manner 
determined by the Secretary.
    (d) If a fellow withdraws from his or her program of study before 
the completion of the academic term for which he or she received a 
stipend installment, the fellow shall return a prorated portion of the 
stipend installment to the institution at a time and in a manner 
determined by the Secretary.

(Authority: 20 U.S.C. 1134r)


Sec. 641.51  What training is a grantee required to provide to 
prospective faculty development fellows?

    The grantee shall provide prospective faculty development fellows 
at least one academic term of supervised training.

(Authority: 20 U.S.C. 1134r)


Sec. 641.52  What records are required from a grantee that receives 
grant funds for prospective or experienced faculty development 
fellowships?

    (a) A grantee that receives funds for prospective and experienced 
faculty development fellowships shall keep records necessary to 
establish--
    (1) That each fellow satisfies the eligibility requirements in 
Sec. 641.30;
    (2) (i) The time and amount of all disbursements; and
    (ii) Return of stipend payments under Sec. 641.50 (c) and (d); and
    (3) That assurances provided in its application have been 
satisfied.
    (b) After the completion of each academic year, a grantee shall 
provide to the Secretary, prior to the receipt of additional grant 
funds for disbursement to a prospective or experienced faculty 
development fellow, a certification that the fellow is enrolled in, is 
making satisfactory progress in, and is devoting full time to, the 
doctoral program in which the fellow is enrolled.

(Authority: 20 U.S.C. 1134r)

Subpart G--What Are the Administrative Responsibilities of the 
Grantee that Receives Funds for Faculty Professional Development 
Fellowships?


Sec. 641.60  How does a grantee disburse and return funds for faculty 
professional development fellowships?

    (a) A grantee that receives grant funds for professional 
development fellowships shall disburse grant funds to a faculty 
professional development fellow in a timely manner.
    (b) If a fellow withdraws from a professional development program 
before the completion of the program, the grantee may award the 
fellowship for the remainder of the project period to another 
individual who satisfies the requirements in Sec. 641.30.
    (c) If a fellowship is vacated and the grantee does not award the 
fellowship to another individual, the grantee shall return unexpended 
grant funds to the Secretary, unless the Secretary authorizes the use 
of those funds for a subsequent budget period. The institution shall 
return the unexpended grant funds at a time and in a manner determined 
by the Secretary.

(Authority: 20 U.S.C. 1134r)

Sec. 641.61  What records are required from a grantee that receives 
funds for faculty professional development fellowships?

    A grantee that receives funds for faculty professional development 
fellowships shall keep records necessary to establish--
    (a) That each fellow satisfies the eligibility requirements in 
Sec. 641.30;
    (b) The time and amount of all disbursements and the return of 
unexpended grant funds; and
    (c) That all grant funds are used for allowable costs.

(Authority: 20 U.S.C. 1134r)

Subpart H--What Conditions Apply to Prospective and Experienced 
Faculty Development Fellowships?


Sec. 641.70  What agreement must be made by prospective and experienced 
faculty development fellows?

    Each prospective and experienced faculty development fellow shall 
enter into an agreement with the grantee in which he or she agrees--
    (a) To complete the requirements for a doctoral degree within the 
period for which the fellowship is awarded.
    (b) If the fellow is a prospective faculty development fellow, to 
teach full time, within five years after completing the doctoral degree 
for which the fellowship was awarded, for a period of not less than one 
year for each year for which financial assistance under this program 
was received, in a public or private nonprofit institution of higher 
education;
    (c) If the fellow is an experienced faculty development fellow, to 
teach full time, within five years after completing the doctoral degree 
for which the fellowship was awarded, for a period of not less than one 
year for each year for which financial assistance under this program 
was received, in a public or private nonprofit institution of higher 
education that has a significant minority enrollment;
    (d) (1) To annually provide to the Secretary evidence that the 
fellow is in compliance with paragraphs (a), and (b) or (c), as 
appropriate, of this section.
    (2) Evidence that a fellow is in compliance with his or her 
teaching obligation under paragraphs (b) or (c) of this section must 
include a certification from the institution in which the fellow is 
teaching certifying that the fellow is employed as a full-time teacher.
    (e) To repay the fellowship assistance received in accordance with 
Sec. 641.72(a), in the event the conditions of paragraphs (a), (b), or 
(c), as appropriate, or (d) of this section are not complied with by 
the fellow.

(Authority: 20 U.S.C. 1134r-3)


Sec. 641.71  What are the requirements for a prospective or experienced 
faculty development fellow to receive fellowship payments?

    The grantee shall disburse grant funds to each prospective and 
experienced faculty development fellow who--
    (a) Is selected in accordance with the criteria established under 
Sec. 641.30;
    (b) Signs an agreement under Sec. 641.70;
    (c) Is enrolled as a full-time student in a program of doctoral 
study in an institution of higher education; and
    (d) Is maintaining satisfactory progress towards a doctoral degree.

(Authority: 20 U.S.C. 1134r)


Sec. 641.72  What are the repayment provisions for prospective and 
experienced faculty development fellowships?

    (a) If a fellow is found to be in noncompliance with the agreement 
entered into under Sec. 641.70, the fellow shall--
    (1) Repay the amount of the grant funds received, prorated 
according to the fraction of the teaching obligation not completed, as 
determined by the Secretary in accordance with paragraph (b) of this 
section;
    (2) Pay a simple, per annum interest charge on the outstanding 
principal, as determined by the Secretary, in accordance with paragraph 
(c) of this section; and
    (3) Pay all reasonable collection costs, as determined by the 
Secretary, in accordance with 34 CFR part 682.
    (b) A fellow required by paragraph (a) of this section to repay his 
or her fellowship shall--
    (1) Enter repayment status on the first day of the first calendar 
month after--
    (i) The Secretary has determined that the fellow is no longer 
pursuing a full-time course of study leading to a doctoral degree and 
has not received a doctoral degree;
    (ii) The date the fellow informs the grantee or the Secretary that 
he or she does not plan to fulfill the teaching obligation under 
Sec. 641.70(b) or (c); or
    (iii) The latest date on which a fellow must have begun teaching in 
order to have completed his or her teaching obligation under 
Sec. 641.70(b) or (c); and
    (2) Make monthly or quarterly payments to the Secretary that--
    (i) Cover principal, interest, and reasonable collection costs 
according to a schedule established by the Secretary that calls for 
complete repayment within 10 years after the fellow enters repayment 
status, except as provided in paragraph (b)(2)(ii) of this section; and
    (ii) Amount annually to no less than $1,800 or the unpaid balance, 
whichever is less.
    (c) The interest charge referred to in paragraph (a)(2) of this 
section accrues from--
    (1) The date of the disbursement of the initial fellowship payment 
if--
    (i) The Secretary determines that the fellow is no longer pursuing 
a course of full-time study leading to a doctoral degree; or
    (ii) The fellow informs the grantee or the Secretary that he or she 
does not plan to fulfill the teaching obligation under Sec. 641.70(b) 
or (c); or
    (2) The latest date on which a fellow must have begun teaching in 
order to have completed his or her teaching obligation within 5 years 
after completing the degree for which the fellowship was awarded.
    (d) (1) The interest charge referred to in paragraph (a)(2) of this 
section is calculated annually for the program for the twelve-month 
period extending from July 1 of each year through June 30 of the 
subsequent year and is set at a rate that is the greater of the 
following rates established pursuant to section 427A of the HEA for the 
same twelve-month period:
    (i) The rate charged to new borrowers under the Robert T. Stafford 
Federal Student Loan Program (Title IV, Part B of the HEA).
    (ii) The rate charged to new borrowers under the Federal 
Supplemental Loans for Students and Federal PLUS Programs (section 428A 
and 428B of the HEA, respectively) as published in the Federal 
Register.
    (2) For a fellow required to repay his or her fellowship--
    (i) The interest charge applicable to the period extending from the 
date on which interest begins to accrue (determined in accordance with 
paragraph (c) of this section) until the date on which the fellow's 
repayment period begins (determined in accordance with paragraph (b) of 
this section) is adjusted annually and is set at the rate established 
for the program in accordance with paragraph (d)(1) of this section; 
and
    (ii) The interest charge applicable during the repayment period is 
the rate established for the program in accordance with paragraph 
(d)(1) of this section that is in effect on the date on which the 
fellow's repayment period begins.
    (e) A fellow is not required to make repayments amounting to more 
than $3,600 annually unless higher payments are needed to complete the 
entire repayment within the ten-year period described in paragraph 
(b)(2) of this section.

(Authority: 20 U.S.C. 1134r-4)


Sec. 641.73  What are grounds for deferral from the repayment schedule?

    (a) A fellow is not in violation of the repayment schedule entered 
into under Sec. 641.72 during any period in which the fellow is--
    (1) Pursuing a full-time course of doctoral study;
    (2) Serving, for a period not to exceed 3 years, as a member of the 
armed services of the United States;
    (3) Serving as a Peace Corps volunteer, or as a volunteer under the 
Domestic Service Volunteer Act of 1973;
    (4) Temporarily totally disabled for a period of time not to exceed 
3 years as established by sworn affidavit of a qualified physician;
    (5) Unable to secure employment for a period of time not to exceed 
12 months because the fellow is providing care, such as continuous 
nursing, required by a spouse or another member of fellow's immediate 
family who is disabled;
    (6) Seeking and unable to find full-time employment for a single 
period not to exceed 12 months; or
    (7) Engaged in full-time employment as a teacher in a public or 
private nonprofit preschool, elementary or secondary school, or a 
public or private nonprofit preschool, education program.
    (b) During the time a fellow meets any of the conditions listed in 
paragraph (a) of this section, he or she need not make the repayments 
required by Sec. 641.72 and interest does not accrue.
    (c) The Secretary extends the 10-year repayment period established 
under Sec. 641.72(c)(2) by a period equal to the length of time a 
fellow meets any of the conditions listed in paragraph (a) of this 
section.
    (d) A fellow shall provide a certification annually to the 
Secretary that he or she qualifies for one or more of the conditions 
for deferral listed in paragraph (a) of this section.
    (e) A fellow shall be excused from repayment of any fellowship 
assistance received under this program if--
    (1) The fellow becomes permanently totally disabled as established 
by sworn affidavit of a qualified physician; or
    (2) The fellow has died, as established by a death certificate or 
other evidence conclusive under State law.

(Authority: 20 U.S.C. 1134r-5)


Sec. 641.74  What exceptions apply to the agreement to complete the 
requirements for doctoral study within the period in which the 
fellowship is awarded?

    A prospective or an experienced faculty development fellow is not 
in violation of the agreement to complete the requirements for a 
doctoral degree during the period for which the fellowship is awarded, 
under Sec. 641.70(a), if he or she is--
    (a) Serving, for a period not to exceed 3 years, as a member of the 
armed services of the United States;
    (b) Temporarily totally disabled for a period not to exceed 3 years 
as established by sworn affidavit of a qualified physician;
    (c) Unable to continue study for a period of time not to exceed 12 
months because the fellow is providing care, such as continuous 
nursing, required by a spouse or another member of the fellow's 
immediate family who is disabled; or
    (d) Enrolled in a doctoral study program full-time and is making 
satisfactory programs towards receiving a doctoral degree.

(Authority: 20 U.S.C. 1134r-5)
[FR Doc. 94-9713 Filed 4-21-94; 8:45 am]
BILLING CODE 4000-01-P