[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29969]


[[Page Unknown]]

[Federal Register: December 6, 1994]


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Part VI





Department of Education





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Notice Inviting Applications for Designation as an Eligible Institution 
for Fiscal Year 1995 for the Strengthening Institutions and Endowment 
Challenge Grant Programs; Notice
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DEPARTMENT OF EDUCATION

[CFDA No. 84.031A, CFDA No. 84.031G]

 
Notice Inviting Applications for Designation as an Eligible 
Institution for fiscal year 1995 for the Strengthening Institutions and 
Endowment Challenge Grant Programs

PURPOSE: Institutions of higher education must meet specific statutory 
and regulatory requirements to be designated eligible to receive funds 
under the Strengthening Institutions and Endowment Challenge Grant 
Programs authorized, respectively, under Parts A and C of Title III of 
the Higher Education Act of 1965, as amended (HEA).
    In addition, section 316 of Title III of the HEA authorizes grants 
to Hispanic-serving institutions to enable them to improve and expand 
their capacity to serve Hispanic and other low-income students. Since 
Congress has provided funding for section 316 grants, the Department 
will hold a competition for new awards in Fiscal Year 1995. Hispanic-
serving institutions should note that to receive a grant under section 
316, a Hispanic-serving institution must satisfy the institutional 
eligibility requirements for the Strengthening Institutions and 
Endowment Challenge Grant Programs, as well as additional statutory 
eligibility criteria.
    For Fiscal Years 1995 and 1996, the Department will conduct 
biennial grant award competitions under the Strengthening Institutions 
Program and under section 316 of the HEA for Hispanic-serving 
institutions. Under a biennial grant award competition, an institution 
submits a grant application that may be considered for funding under 
two successive fiscal year grant award competitions. Applications are 
evaluated and ranked by field readers for the first competition. If the 
institution's application is not selected for funding under the first 
fiscal year's award competition, it will be considered for funding 
under the second fiscal year's award competition for new awards based 
upon the score it received in the first competition. As part of this 
scheme, no new applications will be accepted for the second fiscal year 
competition for new awards. Accordingly, if an institution wishes to 
apply for a new grant award under the Strengthening Institutions 
Program for Fiscal Year 1995 or Fiscal Year 1996, it must submit an 
application for Fiscal Year 1995; and if an institution wishes to apply 
for a grant award under section 316 of the HEA, it must submit an 
application for Fiscal Year 1995. The Department will publish a 
separate closing date notice for those grant applications.
    In making awards under the Strengthening Institutions Program, 
under section 313(b) of the HEA, the Secretary gives priority in 
funding to institutions that are not already receiving funding under a 
Strengthening Institutions Program grant. Therefore, in awarding grants 
in Fiscal Year 1995, the Secretary will fund in rank-order from those 
applicants that have a funding priority in Fiscal Year 1995. In 
awarding grants in Fiscal Year 1996, the Secretary will fund in rank-
order from those applicants that have a funding priority in Fiscal Year 
1996.
    The biennial grant award competition has the following 
institutional eligibility implications. To receive a grant in Fiscal 
Year 1995, an institution must submit an institutional eligibility 
application to the Department by the deadline date set forth in this 
notice and must qualify as an eligible institution. To receive a grant 
in Fiscal Year 1996, an institution must submit an institutional 
eligibility application to the Department by the deadline date set 
forth in a notice that will be published for that year and must qualify 
as an eligible institution under that notice.
    For purposes of awarding grants under section 316 of the HEA, if 
the Secretary selects an institution to receive a grant in Fiscal Year 
1996, for purposes of determining whether the institution has an 
enrollment of undergraduate full-time equivalent students that is at 
least 25 percent Hispanic students, the Secretary will consider that 
the institution submitted its application in Fiscal Year 1996.
    To receive a grant in Fiscal Year 1996, an institution does not 
have to submit an institutional eligibility application to the 
Department in Fiscal Year 1995. However, the failure to submit an 
eligibility application for Fiscal Year 1995 will preclude that 
institution from receiving any benefits that derive from being an 
eligible institution during that fiscal year.
    Institutions that wish to be considered for waivers of certain non-
Federal share requirements under the Federal Work-Study or Federal 
Supplemental Educational Opportunity Grant Programs authorized under 
Title IV of the HEA must be designated as eligible institutions under 
the Strengthening Institutions and Endowment Challenge Grant Programs.

DEADLINE FOR TRANSMITTAL OF APPLICATIONS: January 23, 1995 for 
institutions of higher education that anticipate competing for new 
awards under the Strengthening Institutions and Endowment Challenge 
Grant Programs, for Hispanic-serving institutions that anticipate 
competing for new awards authorized under section 316 of the HEA, and 
for institutions that plan to obtain non-Title III benefits from 
qualifying as an eligible institution under the Strengthening 
Institutions and Endowment Challenge Grant Programs.

APPLICATIONS AVAILABLE: December 21, 1994.

ELIGIBILITY INFORMATION: To qualify as an eligible institution under 
the Strengthening Institutions and Endowment Challenge Grant Programs, 
an applicant must (1) be accredited or preaccredited by a nationally 
recognized accrediting agency; (2) be legally authorized by the State 
in which it is located to be a junior or community college or to 
provide a bachelors degree program; and (3) have a high enrollment of 
needy students. In addition, its educational and general (E&G) 
expenditures per full-time equivalent (FTE) undergraduate student must 
be low in comparison with the average E&G expenditures per FTE 
undergraduate student of institutions that offer similar instruction. 
The complete eligibility requirements are found in the Strengthening 
Institutions Program regulations, 34 CFR 607.2-607.5, as revised in the 
Federal Register on August 15, 1994 (59 FR 41914, 41922).

ENROLLMENT OF NEEDY STUDENTS: Under 34 CFR 607.3(a), an institution is 
considered to have a high enrollment of needy students if--(1) at least 
50 percent of its degree students received financial assistance under 
one or more of the following programs: Pell Grant, Supplemental 
Educational Opportunity Grant, College Work Study, or Perkins Loan 
Program; or (2) the percentage of its undergraduate degree students who 
were enrolled on at least a half-time basis and received Pell Grants 
exceeded the median percentage of undergraduate degree students who 
were enrolled on at least a half-time basis and received Pell Grants at 
comparable institutions that offer similar instruction. To qualify 
under this latter criterion, an institution's Pell Grant percentage for 
base year 1992-93 must be more than the median for its category of 
comparable institutions provided on the table in this notice.

E&G EXPENDITURES PER FTE STUDENT: An institution should compare its 
average E&G expenditure/FTE student to the average E&G expenditure/FTE 
student for its category of comparable institutions contained in the 
table in this notice. If the institution's average E&G expenditure for 
the 1992-93 base year is less than the average for its category of 
comparable institutions, it meets this eligibility requirement.
    The institution's E&G expenditures are the total amount it expended 
during the base year for instruction, research, public service, 
academic support, student services, institutional support, operation 
and maintenance, scholarships and fellowships, and mandatory transfers.
    The following table identifies the relevant median Pell Grant 
percentages and the average E&G expenditures per FTE student for the 
1992-93 base year for the four categories of comparable institutions:

------------------------------------------------------------------------
                                                                Average 
                                                     Median     E&G per 
                                                   Pell grant     FTE   
                                                   percentage   student 
------------------------------------------------------------------------
2-year public institutions.......................       30.20     $6,565
2-year non-profit private institutions...........       33.95     10,959
4-year public institutions.......................       29.62     12,004
4-year non-profit private institutions...........       30.23     15,724
------------------------------------------------------------------------


WAIVER INFORMATION: Institutions of higher education that are unable to 
meet the needy student enrollment requirement or the E&G expenditure 
requirement may apply to the Secretary for waivers of these 
requirements, as described in 34 CFR 607.3(b) and 607.4 (c) and (d). As 
discussed in the preamble to the final regulations published in the 
Federal Register on August 15, 1994 (59 FR 41914-41917), the Secretary 
has developed a set of more specific instructions relating to the 
waiver provisions for institutions unable to meet the needy student 
enrollment requirement. Institutions requesting a waiver of this 
requirement must include detailed information as set forth in the 
instructions for completing the application.
    Under the waiver authority provided in 34 CFR 607.3(b)(2), an 
institution must demonstrate that at least 30 percent of the students 
it served in base year 1992-93 were from low-income families. The 
regulations define ``low-income'' as an amount that does not exceed 150 
percent of the amount equal to the poverty level as established by the 
U.S. Bureau of the Census, 34 CFR 607.3(c). For the purposes of this 
waiver provision, the following table sets forth the low-income levels 
for the various sizes of families:

                       Base Year Low-Income Levels                      
------------------------------------------------------------------------
                                 Contiguous 48                          
                                  States, the                           
                                  District of                           
      Size of family unit        Columbia, and     Alaska       Hawaii  
                                    outlying                            
                                 jurisdictions                          
------------------------------------------------------------------------
1..............................       $10,215       $12,750      $11,745
2..............................        13,785        17,220       15,855
3..............................        17,355        21,690       19,965
4..............................        20,925        26,160       24,075
5..............................        24,495        30,630       28,185
6..............................        28,065        35,100       32,295
7..............................        31,635        39,570       36,405
8..............................        35,250        44,040       40,515
------------------------------------------------------------------------

    For family units with more than eight members add the following 
amount for each additional family member: $3,570 for the contiguous 48 
states, the District of Columbia and outlying jurisdictions; $4,470 for 
Alaska; and $4,110 for Hawaii.
    The figures shown as low-income levels represent amounts equal to 
150 percent of the family income levels established by the U.S. Bureau 
of the Census for determining poverty status. The Census levels were 
published by the U.S. Department of Health and Human Services in the 
Federal Register on February 14, 1992 (57 FR 5455-5457).
    In reference to the waiver option specified in Sec. 607.3(b)(4) of 
the regulations, information about ``metropolitan statistical areas'' 
may be obtained by requesting the Metropolitan Statistical Areas, 1993, 
order number PB93-192664, from the National Technical Information 
Services, Document Sales, 5285 Port Royal Road, Springfield, Virginia 
22161, telephone number (703) 487-4650. There is a charge for this 
publication. For general information about ``metropolitan statistical 
areas'', institutions of higher education may contact the Strengthening 
Institutions Program Branch.

APPLICABLE REGULATIONS: Regulations applicable to the eligibility 
process include: (a) the Strengthening Institutions Program Regulations 
in 34 CFR Part 607, as revised in the Federal Register on August 15, 
1994 (59 FR 41914); (b) the Endowment Challenge Grant Program 
Regulations in 34 CFR Part 628; and (c) the Education Department 
General Administrative Regulations in 34 CFR Parts 74, 75, 77, 82, 85, 
and 86.

FOR APPLICATIONS OR INFORMATION CONTACT: Strengthening Institutions 
Program Branch, Division of Institutional Development, U.S. Department 
of Education, 600 Independence Avenue, S.W., Room 3042 ROB-3, 
Washington, D.C. 20202-5335. Telephone: (202) 708-8839. 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.
    Information about the Department's funding opportunities, including 
copies of application notices for discretionary grant competitions, can 
be viewed on the Department's electronic bulletin board (ED Board), 
telephone (202) 260-9950; or on the Internet Gopher Server at 
GOPHER.ED.GOV (under Announcements, Bulletins and Press Releases). 
However, the official application notice for a discretionary grant 
competition is the notice published in the Federal Register.

PROGRAM AUTHORITY: 20 U.S.C. 1057, 1059c and 1065a.

    Dated: November 30, 1994.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 94-29969 Filed 12-5-94; 8:45 am]
BILLING CODE 4000-01-P