[Federal Register Volume 59, Number 81 (Thursday, April 28, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10036]
[Federal Register: April 28, 1994]
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Part III
Department of Education
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34 CFR Parts 600 and 601
Institutional Eligibility Under the Higher Education Act of 1965, as
Amended; Eligibility of Foreign Medical Schools Under the Guaranteed
Student Loan Program; Rule
DEPARTMENT OF EDUCATION
34 CFR Parts 600 and 601
RIN 1840-AB88
Institutional Eligibility Under the Higher Education Act of 1965,
as Amended; Eligibility of Foreign Medical Schools Under the Guaranteed
Student Loan Program (GSLP)
AGENCY: Department of Education.
ACTION: Final regulations.
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SUMMARY: The Secretary amends the regulations for Institutional
Eligibility under the Higher Education Act of 1965, as amended (HEA),
and the regulations for Eligibility of Foreign Medical Schools under
the Guaranteed Student Loan Program (GSLP) to reflect changes made to
the HEA by the Higher Education Amendments of 1992. The Secretary
removes the latter regulations from Title 34 of the Code of Federal
Regulations, revises them, and adds them to the former regulations as a
new subpart E.
The regulations revise the procedures and criteria under which a
foreign institution establishes eligibility to apply to participate in
the Federal Family Education Loan (FFEL) programs if the institution is
comparable to an eligible institution of higher education located in
the United States.
EFFECTIVE DATE: These regulations take effect on July 1, 1994.
FOR FURTHER INFORMATION CONTACT: Ms. Joyce R. Coates, U.S. Department
of Education, 400 Maryland Avenue, SW., room 4318, Regional Office
Building 3, Washington, DC 20202-5346. Telephone: (202) 708-7888.
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, Monday through Friday.
SUPPLEMENTARY INFORMATION: The Institutional Eligibility regulations
contain requirements that apply to all postsecondary educational
institutions that seek initial or continued eligibility to apply to
participate in the programs authorized by the HEA.
On January 18, 1994, the Secretary published a notice of proposed
rulemaking (NPRM) for parts 600 and 601 in the Federal Register (59 FR
2714). The NPRM included a discussion of major issues surrounding the
proposed changes that will not be repeated here. The following list
summarizes those issues and identifies the pages of the preamble to the
NPRM on which a discussion of those issues can be found:
Purpose and scope in Sec. 600.51 (page 2714).
Definitions contained in Sec. 600.52 (page 2714).
Provisions for requesting an eligibility determination contained in
Sec. 600.53 (pages 2714-2715).
Criteria for determining the eligibility of a foreign institution
contained in Sec. 600.54 (page 2715).
Additional criteria for determining the eligibility of a foreign
graduate medical school contained in Sec. 600.55 (pages 2715-2716).
Provisions governing the duration of eligibility determinations in
Sec. 600.56 (page 2716).
These final regulations contain one significant difference from the
NPRM. In Sec. 600.54, the Secretary has added a requirement for a
foreign institution to be a public or private nonprofit institution.
Analysis of Comments and Changes
In response to the Secretary's invitation in the NPRM, 415 parties
submitted comments on the proposed regulations. Most comments were from
persons connected with two foreign graduate medical schools and were
nearly identical. An analysis of the comments and of the changes in the
regulations since publication of the NPRM follows. Substantive issues
are discussed under the section of the regulations to which they
pertain.
Technical and other minor changes--and suggested changes the
Secretary is not legally authorized to make under applicable statutory
authority--are not addressed.
Section 600.54 Criteria for Determining Whether a Foreign Institution
is Eligible To Apply To Participate in the FFEL Programs
Comments: A commenter pointed out that section 481(a)(1) of the HEA
requires a foreign institution to be comparable to an institution of
higher education as defined in section 1201(a) of the HEA, and that the
definition in section 1201(a) requires an institution to be a public or
private nonprofit institution. The commenter suggested that this
requirement be added to the regulations.
Discussion: The Secretary agrees with the commenter that a change
is necessary to make clear that a for-profit institution is not
eligible under these regulations.
Changes: Section 600.54 has been revised to require a foreign
institution to be a public or private nonprofit educational
institution.
Section 600.55 Additional Criteria for Determining Whether a Foreign
Graduate Medical School is Eligible To Apply To Participate in the FFEL
Programs.
Comments: Most commenters opposed the requirement that a training
program for foreign medical students be approved by all medical
licensing boards and evaluating bodies whose views are considered
relevant by the Secretary on the grounds that the Secretary might rely
on the judgments of inappropriate bodies. Some commenters were
concerned that the Secretary might seek the judgment of a State body
over a program located in a different State, if the second State had no
such approving body. One commenter suggested that the Secretary require
the views of boards and evaluating bodies only in those States where
such bodies exist.
Discussion: One purpose of these regulations is to make certain
that facilities, curriculum, equipment, and faculty are comparable in
quality to those of medical schools in the United States. The Secretary
requires the assurance of that comparability through appropriate
impartial and qualified third parties. The Secretary does not consider
it unreasonable for an educational program or portion of a program
located in a State to obtain the approval of an appropriate medical
licensing board or other evaluating body. Which licensing boards and
evaluating bodies the Secretary considers relevant will depend on the
State in which the program is located, and the time that the
application is filed among other relevant factors.
Changes: None.
Comments: Most commenters opposed the requirement for an
institution, rather than the Educational Commission for Foreign Medical
Graduates (ECFMG), to provide pass rate data on its students and
graduates to the Secretary. One commenter believed that the ECFMG would
refuse to release data to institutions, thus effectively denying their
eligibility.
Discussion: It is the responsibility of an institution seeking to
participate in the FFEL programs to establish that it complies with the
requirements for eligibility for that participation. Accordingly, the
institution must furnish the Secretary with the necessary information
for the Secretary to make a determination on the institution's
compliance. Institutions are urged to work with the ECFMG and their
graduates to obtain the relevant data.
Changes: None.
Comment: A few commenters opposed the requirement that a school's
clinical training program be approved by a State as of January 1, 1992,
and remain currently approved by that State. One commenter claimed that
because few States approve clinical training programs for foreign
medical schools, Congress would not have intended to require that
approval.
Discussion: States can and do approve clinical training programs
for foreign medical schools; thus, Congress specifically referred to
that approval in section 481(a)(2) of the HEA for programs approved as
of January 1, 1992. The Congress made clear throughout the Higher
Education Amendments of 1992 the need for strict accountability of
educational institutions to States, accrediting agencies, and the
Federal government. The Secretary would be remiss in his duty to
exercise responsible oversight of the administration of the FFEL
programs if participating institutions were to be permitted to obtain
or maintain eligibility for clinical training programs that, although
once approved by a State, lost such approval. Further, approval of the
clinical training program is among the criteria in the HEA used to
demonstrate comparability to institutions in the United States. A
school that lost its State approval after January 1, 1992 fails this
criterion.
Changes: None.
Assessment of Educational Impact
In the notice of proposed rulemaking, the Secretary requested
comments on whether the proposed regulations would require transmission
of information that is being gathered by or is available from any other
agency or authority of the United States.
Based on the response to the proposed rules and its own review, the
Department has determined that the regulations in this document do not
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 600
Administrative practice and procedure, Colleges and universities,
Consumer protection, Education, Grant programs-education, Loan
programs-education, Reporting and recordkeeping requirements, Student
aid.
Dated: April 11, 1994.
Richard W. Riley,
Secretary of Education.
(Catalog of Federal Domestic Assistance Number does not apply.)
The Secretary amends title 34 of the Code of Federal Regulations by
amending part 600 and by removing part 601 as follows:
PART 600--INSTITUTIONAL ELIGIBILITY UNDER THE HIGHER EDUCATION ACT
OF 1965, AS AMENDED
1. The authority citation for part 600 continues to read as
follows:
Authority: 20 U.S.C. 1082, 1085, 1088, 1094, and 1141, unless
otherwise noted.
2. A new subpart E is added to part 600 to read as follows:
* * * * *
Subpart E--Eligibility of Foreign Institutions To Apply To Participate
in the Federal Family Education Loan (FFEL) Programs
Sec.
600.51 Purpose and scope.
600.52 Definitions.
600.53 Requesting an eligibility determination.
600.54 Criteria for determining whether a foreign institution is
eligible to apply to participate in the FFEL programs.
600.55 Additional criteria for determining whether a foreign
graduate medical school is eligible to apply to participate in the
FFEL programs.
600.56 Duration of eligibility determination.
* * * * *
Subpart E--Eligibility of Foreign Institutions To Apply To
Participate in the Federal Family Education Loan (FFEL) Programs
Sec. 600.51 Purpose and scope.
(a) A foreign institution is eligible to apply to participate in
the Federal Family Education Loan (FFEL) programs if it is comparable
to an eligible institution of higher education located in the United
States and has been approved by the Secretary in accordance with the
provisions of this subpart.
(b) This subpart E contains the procedures and criteria under which
a foreign institution may be deemed eligible to apply to participate in
the FFEL programs.
(c) This subpart E does not include the procedures and criteria by
which a foreign institution that is deemed eligible to apply to
participate in the FFEL programs actually applies for that
participation. Those procedures and criteria are contained in the
regulations for the FFEL programs, 34 CFR part 682, subpart F.
(Authority: 20 U.S.C. 1082, 1088)
Sec. 600.52 Definitions.
The following definitions apply to this subpart E:
Foreign graduate medical school: A foreign institution that
qualifies to be listed in, and is listed as a medical school in, the
most current edition of the World Directory of Medical Schools
published by the World Health Organization (WHO).
Foreign institution: An institution that is not located in a State.
Passing score: The minimum passing score as defined by the
Educational Commission for Foreign Medical Graduates (ECFMG).
Secondary school: A school that provides secondary education as
determined under the laws of the country in which the school is
located.
(Authority: 20 U.S.C. 1082, 1088)
Sec. 600.53 Requesting an eligibility determination.
(a) To be designated as eligible to apply to participate in the
FFEL programs or to continue to be eligible beyond the scheduled
expiration of the institution's current period of eligibility, a
foreign institution must--
(1) Apply on the form prescribed by the Secretary; and
(2) Provide all the information and documentation requested by the
Secretary to make a determination of that eligibility.
(b) If a foreign institution fails to provide, release, or
authorize release to the Secretary of information that is required in
this subpart E, the institution is ineligible to apply to participate
in the FFEL programs.
(Approved by the Office of Management and Budget under control
number 1840-0673)
(Authority: 20 U.S.C. 1082, 1088)
Sec. 600.54 Criteria for determining whether a foreign institution is
eligible to apply to participate in the FFEL programs.
The Secretary considers a foreign institution to be comparable to
an eligible institution of higher education in the United States and
eligible to apply to participate in the FFEL programs if the foreign
institution is a public or private nonprofit educational institution
that--
(a) Admits as regular students only persons who--
(1) Have a secondary school completion credential; or
(2) Have the recognized equivalent of a secondary school completion
credential;
(b) Is legally authorized by an appropriate authority to provide an
eligible educational program beyond the secondary school level in the
country in which the institution is located; and
(c) Provides an eligible education program--
(1) For which the institution is legally authorized to award a
degree that is equivalent to an associate, baccalaureate, graduate, or
professional degree awarded in the United States;
(2) That is at least a two-academic-year program acceptable for
full credit toward the equivalent of a baccalaureate degree awarded in
the United States; or
(3) That is equivalent to at least a one-academic-year training
program in the United States that leads to a certificate, degree, or
other recognized educational credential and prepares students for
gainful employment in a recognized occupation.
(Authority: 20 U.S.C. 1082, 1088)
Sec. 600.55 Additional criteria for determining whether a foreign
graduate medical school is eligible to apply to participate in the FFEL
programs.
(a) The Secretary considers a foreign graduate medical school to be
eligible to apply to participate in the FFEL programs if, in addition
to satisfying the criteria in Sec. 600.54, the school satisfies all of
the following criteria:
(1) The school provides, and in the normal course requires its
students to complete, a program of clinical and classroom medical
instruction of not less that 32 months in length, that is supervised
closely by members of the school's faculty and that is provided
either--
(i) Outside the United States, in facilities adequately equipped
and staffed to afford students comprehensive clinical and classroom
medical instruction; or
(ii) In the United States, through a training program for foreign
medical students that has been approved by all medical licensing boards
and evaluating bodies whose views are considered relevant by the
Secretary.
(2) The school has graduated classes during each of the two twelve-
month periods immediately preceding the date the Secretary receives the
school's request for an eligibility determination.
(3) The school employs for the program described in paragraph
(a)(1) of this section only those faculty members whose academic
credentials are the equivalent of credentials required of faculty
members teaching the same or similar courses at medical schools in the
United States.
(4)(i) The school has been approved by an accrediting body--
(A) That is legally authorized to evaluate the quality of graduate
medical school educational programs and facilities in the country where
the school is located; and
(B) Whose standards of accreditation of graduate medical schools--
(1) Have been evaluated by the advisory panel of medical experts
established by the Secretary; and
(2) Have been determined to be comparable to standards of
accreditation applied to medical schools in the United States; or
(ii) The school is a public or private nonprofit educational
institution that satisfies the requirements in Sec. 600.4(a)(5)(i).
(5)(i)(A) During the academic year preceding the year for which any
of the school's students seeks an FFEL program loan, at least 60
percent of those enrolled as full-time regular students in the school
and at least 60 percent of the school's most recent graduating class
were persons who did not meet the citizenship and residency criteria
contained in 34 CFR 668.7(a)(4)(i) through (iii); and
(B) At least 60 percent of the school's students and graduates who
took any step of the examinations administered by the Educational
Commission for Foreign Medical Graduates (ECFMG) (including the ECFMG
English test) in the year preceding the year for which any of the
school's students seeks an FFEL program loan received passing scores on
the exams; or
(ii) The school's clinical training program was approved by a State
as of January 1, 1992, and is currently approved by that State.
(b) In performing the calculation required in paragraph
(a)(5)(i)(B) of this section, a foreign graduate medical school shall
count as a graduate each person who graduated from the school during
the three years preceding the year for which the calculation is
performed.
(Authority: 20 U.S.C. 1082, 1088)
Sec. 600.56 Duration of eligibility determination.
(a) The eligibility of a foreign institution under this subpart
expires four years after the date of the Secretary's determination that
the institution is eligible to apply for participation, except that the
Secretary may specify a shorter period of eligibility. In the case of a
foreign graduate medical school, continued eligibility is dependent
upon annual submission of the data and information required under
Sec. 600.55(a)(5)(i), subject to the terms described in Sec. 600.53(b).
(b) A foreign institution that has been determined eligible loses
its eligibility on the date that the institution no longer meets any of
the criteria in this subpart E.
(c) Notwithstanding the provisions of 34 CFR 668.25(c)(2), if a
foreign institution loses its eligibility under this subpart E, an
otherwise eligible student, continuously enrolled at the institution
before the loss of eligibility, may receive an FFEL program loan for
attendance at that institution for the academic year succeeding the
academic year in which that institution lost its eligibility, if the
student actually received an FFEL program loan for attendance at the
institution for a period during which the institution was eligible
under this subpart E.
(Authority: 20 U.S.C. 1082, 1088, 1099c)
PART 601--ELIGIBILITY OF FOREIGN MEDICAL SCHOOLS UNDER THE
GUARANTEED STUDENT LOAN PROGRAM (GSLP)
3. Part 601 of Title 34 of the Code of Federal Regulations is
removed and reserved.
[FR Doc. 94-10036 Filed 4-26-94; 8:45 am]
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