[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]
BILLING CODE 4000-01-P