[Federal Register Volume 60, Number 15 (Tuesday, January 24, 1995)]
[Rules and Regulations]
[Pages 4748-4758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1689]



      

[[Page 4747]]

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Part V





Department of Education





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34 CFR Part 645



Upward Bound Program; Notice Inviting Applications for New Awards for 
Fiscal Year (FY) 1995; Final Rule and Notice

  Federal Register / Vol. 60, No. 15 / Tuesday, January 24, 1995 / 
Rules and Regulations   
[[Page 4748]] 

DEPARTMENT OF EDUCATION

34 CFR Part 645

RIN 1840-AB65


Upward Bound Program

AGENCY: Department of Education.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The Secretary amends the regulations governing the Upward 
Bound Program in order to further implement statutory changes made to 
the Upward Bound Program by the Higher Education Amendments of 1992 and 
to clarify and simplify certain requirements governing the program. The 
selection criteria, prior experience criteria, and grantee 
accountability provisions are affected by these changes.

EFFECTIVE DATE: These regulations take effect February 23, 1995.

FOR FURTHER INFORMATION CONTACT: Prince O. Teal, Jr., U.S. Department 
of Education, 600 Independence Avenue, S.W., Suite 600, Portals 
Building, Washington, D.C. 20202-5249. Telephone: (202) 708-4804. 
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 Upward Bound Program provides grants to 
institutions of higher education; public and private agencies and 
organizations; combinations of institutions, agencies, and 
organizations; and secondary schools under special circumstances. The 
purpose of the program is to generate the skills and motivation 
necessary for success in education beyond high school.
    The purposes and allowable activities of the Upward Bound Program 
support the National Education Goals. Specifically, the program 
supports projects designed to increase high school graduation rates; 
increase competency in challenging subject matters including English, 
mathematics, science, foreign language, and literature; encourage more 
students to pursue programs that lead to careers in mathematics and 
science; and help gain parental participation in the social, emotional, 
and academic growth of their children.
    On September 2, 1994, the Secretary published a notice of proposed 
rulemaking (NPRM) for the Upward Bound Program in the Federal Register 
(59 FR 45964-70).

Analysis of Comments and Changes

    In response to the Secretary's invitation in the NPRM, 48 persons 
submitted comments on the proposed regulations. An analysis of the 
comments and of the changes made in the regulations since publication 
of the NPRM is published as an appendix to these final regulations.

Intergovernmental Review

    This program is subject to the requirements of Executive Order 
12372 and the regulations in 34 CFR 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.

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 on 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 645

    Colleges and Universities, Education of disadvantaged, Grant 
programs-education, Reporting and recordkeeping requirements, Secondary 
education.

(Catalog of Federal Domestic Assistance Number 84.047, Upward Bound 
Program)

    Dated: January 17, 1995.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
    The Secretary amends Title 34 of the Code of Federal Regulations by 
revising Part 645 to read as follows:

PART 645--UPWARD BOUND PROGRAM

Subpart A--General

Sec.
645.1  What is the Upward Bound Program?
645.2  Who is eligible for a grant?
645.3  Who is eligible to participate in an Upward Bound project?
645.4  What are the grantee requirements with respect to low income 
and first-generation participants?
645.5  What regulations apply?
645.6  What definitions apply to the Upward Bound Program?
Subpart B--What Kinds of Projects and Services Does the Secretary 
Assist Under This Program?
645.10  What kinds of projects are supported under the Upward Bound 
Program?
645.11  What services do all Upward Bound projects provide?
645.12  How are regular Upward Bound projects organized?
645.13  What additional services do Upward Bound Math and Science 
Centers provide and how are they organized?
645.14  What additional services do Veterans Upward Bound projects 
provide?

Subpart C--How Does One Apply for An Award?

645.20  How many applications for an Upward Bound award may an 
eligible applicant submit?
645.21  What assurances must an applicant include in an application?

Subpart D--How Does the Secretary Make a Grant?

645.30  How does the Secretary decide which grants to make?
645.31  What selection criteria does the Secretary use?
645.32  How does the Secretary evaluate prior experience?
645.33  How does the Secretary set the amount of a grant?
645.34  How long is a project period?

Subpart E--What Conditions Must Be Met by a Grantee?

645.40  What are allowable costs?
645.41  What are unallowable costs?
645.42  What are Upward Bound stipends?
645.43  What other requirements must a grantee meet?

    Authority: 20 U.S.C. 1070a-11 and 1070a-13, unless otherwise 
noted.

Subpart A--General


Sec. 645.1  What is the Upward Bound Program?

    (a) The Upward Bound Program provides Federal grants to projects 
designed to generate in program participants the skills and motivation 
necessary to complete a program of secondary education and to enter and 
succeed in a program of postsecondary education.
    (b) The Upward Bound Program provides Federal grants for the 
following three types of projects:
    (1) Regular Upward Bound projects.
    (2) Upward Bound Math and Science Centers.
    (3) Veterans Upward Bound projects.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13) [[Page 4749]] 


Sec. 645.2  Who is eligible for a grant?

    The following entities are eligible to apply for a grant to carry 
out an Upward Bound project:
    (a) Institutions of higher education.
    (b) Public or private agencies or organizations.
    (c) Secondary schools, in exceptional cases, if there are no other 
applicants capable of providing this program in the target area or 
areas to be served by the proposed project.
    (d) A combination of the types of institutions, agencies, and 
organizations described in paragraphs (a) and (b) of this section.

(Authority: 20 U.S.C 1070a-11 and 1070a-13)


Sec. 645.3  Who is eligible to participate in an Upward Bound project?

    An individual is eligible to participate in a Regular, Veterans, or 
a Math and Science Upward Bound project if the individual meets all of 
the following requirements:
    (a) (1) Is a citizen or national of the United States.
    (2) Is a permanent resident of the United States.
    (3) Is in the United States for other than a temporary purpose and 
provides evidence from the Immigration and Naturalization Service of 
his or her intent to become a permanent resident.
    (4) Is a permanent resident of Guam, the Northern Mariana Islands, 
or the Trust Territory of the Pacific Islands.
    (5) Is a resident of the Freely Associated States--the Federated 
States of Micronesia, the Republic of the Marshall Islands, or the 
Republic of Palau.
    (b) Is--(1) A potential first-generation college student; or
    (2) A low-income individual.
    (c) Has a need for academic support, as determined by the grantee, 
in order to pursue successfully a program of education beyond high 
school.
    (d) At the time of initial selection, has completed the eighth 
grade but has not entered the twelfth grade and is at least 13 years 
old but not older than 19, although the Secretary may waive the age 
requirement if the applicant demonstrates that the limitation would 
defeat the purposes of the Upward Bound program. However, a veteran as 
defined in Sec. 645.6, regardless of age, is eligible to participate in 
an Upward Bound project if he or she satisfies the eligibility 
requirements in paragraphs (a), (b), and (c) of this section.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.4  What are the grantee requirements with respect to low 
income and first-generation participants?

    (a) At least two-thirds of the eligible participants a grantee 
serves must at the time of initial selection qualify as both low-income 
individuals and potential first-generation college students. The 
remaining participants must at the time of initial selection qualify as 
either low-income individuals or potential first generation college 
students.
    (b) For purposes of documenting a participant's low-income status 
the following applies:
    (1) In the case of a student who is not an independent student, an 
institution shall document that the student is a low-income individual 
by obtaining and maintaining--
    (i) A signed statement from the student's parent or legal guardian 
regarding family income;
    (ii) Verification of family income from another governmental 
source;
    (iii) A signed financial aid application; or
    (iv) A signed United States or Puerto Rican income tax return.
    (2) In the case of a student who is an independent student, an 
institution shall document that the student is a low-income individual 
by obtaining and maintaining--
    (i) A signed statement from the student regarding family income;
    (ii) Verification of family income from another governmental 
source;
    (iii) A signed financial aid application; or
    (iv) A signed United States or Puerto Rican income tax return.
    (c) For purposes of documenting potential first generation college 
student status, documentation consists of a signed statement from a 
dependent participant's parent, or a signed statement from an 
independent participant.
    (d) A grantee does not have to revalidate a participant's 
eligibility after the participant's initial selection.

(Approved by the Office of Management and Budget under control 
number 1840-0550)

(Authority: 20 U.S.C. 1070a-11)


Sec. 645.5  What regulations apply?

    The following regulations apply to the Upward Bound Program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR Part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations);
    (2) 34 CFR Part 75 (Direct Grant Programs), except for Sec. 75.511;
    (3) 34 CFR Part 77 (Definitions that Apply to Department 
Regulations), except for the definition of ``secondary school'' in 34 
CFR 77.1;
    (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 645.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.6  What definitions apply to the Upward Bound Program?

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

Applicant
Application
Award
Budget
Budget period
EDGAR
Equipment
Facilities
Grant
Grantee
Project
Project period
Secretary
State
Supplies

    (b) Other Definitions. The following definitions also apply to this 
part:
    Family taxable income means--
    (1) With regard to a dependent student, the taxable income of the 
individual's parents;
    (2) With regard to a dependent student who is an orphan or ward of 
the court, no taxable income;
    (3) With regard to an independent student, the taxable income of 
the student and his or her spouse.
    HEA means the Higher Education Act of 1965, as amended.
    Independent student means a student who--
    (1) Is an orphan or ward of the court;
    (2) Is a veteran of the Armed Forces of the United States (as 
defined in this section);
    (3) Is a married individual; or
    (4) Has legal dependents other than a spouse.
    Institution of higher education means an educational institution as 
defined in sections 1201(a) and 481 of the HEA.
    Limited English proficiency with reference to an individual, means 
an individual whose native language is other than English and who has 
[[Page 4750]] sufficient difficulty speaking, reading, writing, or 
understanding the English language to deny that individual the 
opportunity to learn successfully in classrooms in which English is the 
language of instruction.
    Low-income individual means an individual whose family taxable 
income did not exceed 150 percent of the poverty level amount in the 
calendar year preceding the year in which the individual initially 
participates in the project. The poverty level amount is determined by 
using criteria of poverty established by the Bureau of the Census of 
the U.S. Department of Commerce.
    Organization/Agency means an entity that is legally authorized to 
operate programs such as Upward Bound in the State where it is located.
    Participant means an individual who--
    (1) Is determined to be eligible to participate in the project 
under Sec. 645.3;
    (2) Resides in the target area, or is enrolled in a target school 
at the time of acceptance into the project; and
    (3) Has been determined by the project director to be committed to 
the project, as evidenced by being allowed to continue in the project 
for at least--
    (i) Ten days in a summer component if the individual first enrolled 
in an Upward Bound project's summer component; or
    (ii) Sixty days if the individual first enrolled in an Upward Bound 
project's academic year component.
    Potential first-generation college student means--
    (1) An individual neither of whose natural or adoptive parents 
received a baccalaureate degree; or
    (2) A student who, prior to the age of 18, regularly resided with 
and received support from only one natural or adoptive parent and whose 
supporting parent did not receive a baccalaureate degree.
    Secondary school means a school that provides secondary education 
as determined under State law.
    Target area means a discrete local or regional geographical area 
designated by the applicant as the area to be served by an Upward Bound 
project.
    Target school means a school designated by the applicant as a focus 
of project services.
    Veteran means a person who served on active duty as a member of the 
Armed Forces of the United States--
    (1) For a period of more than 180 days, any part of which occurred 
after January 31, 1955, and who was discharged or released from active 
duty under conditions other than dishonorable; or
    (2) After January 31, 1955, and who was discharged or released from 
active duty because of a service-connected disability.

(Authority: 20 U.S.C. 1001 et seq., 1070a-11, 1070a-13, 1088, 1141, 
1141a, and 3283(a)).

Subpart B--What Kinds of Projects and Services Does the Secretary 
Assist Under This Program?


Sec. 645.10  What kinds of projects are supported under the Upward 
Bound Program?

    The Secretary provides grants to the following three types of 
Upward Bound projects:
    (a) Regular Upward Bound projects designed to prepare high school 
students for programs of postsecondary education.
    (b) Upward Bound Math and Science Centers designed to prepare high 
school students for postsecondary education programs that lead to 
careers in the fields of math and science.
    (c) Veterans Upward Bound projects designed to assist veterans to 
prepare for a program of postsecondary education.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.11  What services do all Upward Bound projects provide?

    (a) An Upward Bound project that has received funds under this part 
for at least two years shall include as part of its core curriculum, 
instruction in--
    (1) Mathematics through pre-calculus;
    (2) Laboratory science;
    (3) Foreign language;
    (4) Composition; and
    (5) Literature.
    (b) All Upward Bound projects may provide such services as--
    (1) Instruction in subjects other than those listed in 
Sec. 645.11(a) that are necessary for success in education beyond high 
school;
    (2) Personal counseling;
    (3) Academic advice and assistance in secondary school course 
selection;
    (4) Tutorial services;
    (5) Exposure to cultural events, academic programs, and other 
educational activities not usually available to disadvantaged youths;
    (6) Activities designed to acquaint youths participating in the 
project with the range of career options available to them;
    (7) Instruction designed to prepare youths participating in the 
project for careers in which persons from disadvantaged backgrounds are 
particularly underrepresented;
    (8) Mentoring programs involving elementary or secondary school 
teachers, faculty members at institutions of higher education, 
students, or any combination of these persons and other professional 
individuals; and
    (9) Programs and activities such as those described in paragraphs 
(b)(1) through (b)(8) of this section that are specifically designed 
for individuals with limited proficiency in English.

(Authority: 20 U.S.C. 1070a-13)


Sec. 645.12  How are regular Upward Bound projects organized?

    (a) Regular Upward Bound projects--
    (1) Must provide participants with a summer instructional component 
that is designed to simulate a college-going experience for 
participants, and an academic year component; and
    (2) May provide a summer bridge component to those Upward Bound 
participants who have graduated from secondary school and intend to 
enroll in an institution of higher education in the following fall 
term. A summer bridge component provides participants with services and 
activities, including college courses, that aid in the transition from 
secondary education to postsecondary education.
    (b) A summer instructional component shall--
    (1) Be six weeks in length unless the grantee can demonstrate to 
the Secretary that a shorter period will not hinder the effectiveness 
of the project nor prevent the project from achieving its goals and 
objectives, and the Secretary approves that shorter period; and
    (2) Provide participants with one or more of the services described 
in Sec. 645.11 at least five days per week.
    (c)(1) Except as provided in paragraph (c)(2) of this section, an 
academic year component shall provide program participants with one or 
more of the services described in Sec. 645.11 on a weekly basis 
throughout the academic year and, to the extent possible, shall not 
prevent participants from fully participating in academic and 
nonacademic activities at the participants' secondary school.
    (2) If an Upward Bound project's location or the project's staff 
are not readily accessible to participants because of distance or lack 
of transportation, the grantee may, with the Secretary's permission, 
provide project services to participants every two weeks during the 
academic year.

(Authority: 20 U.S.C. 1070a-13)


Sec. 645.13  What additional services do Upward Bound Math and Science 
Centers provide and how are they organized?

    (a) In addition to the services that must be provided under 
Sec. 645.11(a) and may be provided under Sec. 645.11(b), an Upward 
Bound Math and Science Center must provide--
    (1) Intensive instruction in mathematics and science, including 
[[Page 4751]] hands-on experience in laboratories, in computer 
facilities, and at field-sites;
    (2) Activities that will provide participants with opportunities to 
learn from mathematicians and scientists who are engaged in research 
and teaching at the applicant institution, or who are engaged in 
research or applied science at hospitals, governmental laboratories, or 
other public and private agencies;
    (3) Activities that will involve participants with graduate and 
undergraduate science and mathematics majors who may serve as tutors 
and counselors for participants; and
    (4) A summer instructional component that is designed to simulate a 
college-going experience that is at least six weeks in length and 
includes daily coursework and other activities as described in this 
section as well as in Sec. 645.11.
    (b) Math Science Upward Bound Centers may also include--
    (1) A summer bridge component consisting of math and science 
related coursework for those participants who have completed high 
school and intend on enrolling in an institution of higher education in 
the following fall term; and
    (2) An academic year component designed by the applicant to enhance 
achievement of project objectives in the most cost-effective way taking 
into account the distances involved in reaching participants in the 
project's target area.

(Approved by the Office of Management and Budget under control 
number 1840-0550)

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.14  What additional services do Veterans Upward Bound projects 
provide?

    In addition to the services that must be provided under 
Sec. 645.11(a) and may be provided under Sec. 645.11(b), a Veterans 
Upward Bound project must--
    (a) Provide intensive basic skills development in those academic 
subjects required for successful completion of a high school 
equivalency program and for admission to postsecondary education 
programs;
    (b) Provide short-term remedial or refresher courses for veterans 
who are high school graduates but who have delayed pursuing 
postsecondary education. If the grantee is an institution of higher 
education, these courses shall not duplicate courses otherwise 
available to veterans at the institution; and
    (c) Assist veterans in securing support services from other locally 
available resources such as the Veterans Administration, State veterans 
agencies, veterans associations, and other State and local agencies 
that serve veterans.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Subpart C--How Does One Apply for An Award?


Sec. 645.20  How many applications for an Upward Bound award may an 
eligible applicant submit?

    (a) The Secretary accepts more than one application from an 
eligible entity so long as an additional application describes a 
project that serves a different participant population.
    (b) Each application for funding under the Upward Bound Program 
shall state whether the application proposes a Regular Upward Bound 
project, an Upward Bound Math and Science Center, or a Veterans Upward 
Bound project.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.21  What assurances must an applicant include in an 
application?

    An applicant must assure the Secretary that--
    (a) Not less than two-thirds of the project's participants will be 
low-income individuals who are potential first generation college 
students; and
    (b) That the remaining participants be either low-income 
individuals or potential first generation college students.

(Authority 20 U.S.C. 1070a-13)

Subpart D--How Does the Secretary Make a Grant?


Sec. 645.30  How does the Secretary decide which grants to make?

    (a) The Secretary evaluates an application for a grant as follows:
    (1)(i) The Secretary evaluates the application on the basis of the 
selection criteria in Sec. 645.31.
    (ii) The maximum score for all the criteria in Sec. 645.31 is 100 
points. The maximum score for each criterion is indicated in 
parentheses with the criterion.
    (2)(i) If an applicant for a new grant proposes to continue to 
serve substantially the same target population or schools that the 
applicant is serving under an expiring project, the Secretary evaluates 
the applicant's prior experience in delivering services under the 
expiring Upward Bound project on the basis of the criteria in 
Sec. 645.32.
    (ii) The maximum score for all the criteria in Sec. 645.32 is 15 
points. The maximum score for each criterion is indicated in 
parentheses with the criterion.
    (b) The Secretary makes grants in rank order on the basis of the 
application's total scores under paragraphs (a)(1) and (a)(2) of this 
section.
    (c) If the total scores of two or more applications are the same 
and there are insufficient funds for these applications after the 
approval of higher-ranked applications, the Secretary uses whatever 
remaining funds are available to serve geographic areas that have been 
underserved by the Upward Bound Program.
    (d) The Secretary may decline to make a grant to an applicant that 
carried out a project that involved the fraudulent use of funds under 
section 402A(c)(2)(B) of the HEA.

(Authority: 20 U.S.C. 1070a-11, 1070a-13)


Sec. 645.31  What selection criteria does the Secretary use?

    The Secretary uses the following criteria to evaluate an 
application for a grant:
    (a) Need for the project (24 points). In determining need for an 
Upward Bound project, the Secretary reviews each type of project 
(Regular, Math and Science, or Veterans) using different need criteria. 
The criteria for each type of project contain the same maximum score of 
24 points and read as follows:
    (1) The Secretary evaluates the need for a Regular Upward Bound 
project in the proposed target area on the basis of information 
contained in the application which clearly demonstrates that--
    (i) The income level of families in the target area is low;
    (ii) The education attainment level of adults in the target area is 
low;
    (iii) Target high school dropout rates are high;
    (iv) College-going rates in target high schools are low;
    (v) Student/counselor ratios in the target high schools are high; 
and
    (vi) Unaddressed academic, social and economic conditions in the 
target area pose serious problems for low-income, potentially first-
generation college students.
    (2) The Secretary evaluates the need for an Upward Bound Math and 
Science Center in the proposed target area on the basis of--
    (i) The extent to which student performance on standardized 
achievement and assessment tests in mathematics and science in the 
target area is lower than State or national norms.
    (ii) The extent to which potential participants attend schools in 
the target area that lack the resources and coursework that would help 
prepare persons for entry into postsecondary programs in mathematics, 
science, or engineering; [[Page 4752]] 
    (iii) The extent to which such indicators as attendance data, 
dropout rates, college-going rates and student/counselor ratios in the 
target area indicate the importance of having additional educational 
opportunities available to low-income, first-generation students; and
    (iv) The extent to which there are eligible students in the target 
area who have demonstrated interest and capacity to pursue academic 
programs and careers in mathematics and science, and who could benefit 
from an Upward Bound Math and Science program.
    (3) The Secretary evaluates the need for a Veterans Upward Bound 
project in the proposed target area on the basis of clear evidence that 
shows--
    (i) The proposed target area lacks the services for eligible 
veterans that the applicant proposes to provide;
    (ii) A large number of veterans who reside in the target area are 
low income and potential first generation college students;
    (iii) A large number of veterans who reside in the target area who 
have not completed high school or, have completed high school but have 
not enrolled in a program of postsecondary education; and
    (iv) Other indicators of need for a Veterans Upward Bound project, 
including the presence of unaddressed academic or socio-economic 
problems of veterans in the area.
    (b) Objectives (9 points). The Secretary evaluates the quality of 
the applicant's proposed project objectives on the basis of the extent 
to which they--
    (1) Include both process and outcome objectives relating to the 
purpose of the applicable Upward Bound programs for which they are 
applying;
    (2) Address the needs of the target area or target population; and
    (3) Are measurable, ambitious, and attainable over the life of the 
project.
    (c) Plan of operation (30 points). The Secretary determines the 
quality of the applicant's plan of operation by assessing the quality 
of--
    (1) The plan to inform the faculty and staff at the applicant 
institution or agency and the interested individuals and organizations 
throughout the target area of the goals and objectives of the project;
    (2) The plan for identifying, recruiting, and selecting 
participants to be served by the project;
    (3) The plan for assessing individual participant needs and for 
monitoring the academic progress of participants while they are in 
Upward Bound;
    (4) The plan for locating the project within the applicant's 
organizational structure;
    (5) The curriculum, services and activities that are planned for 
participants in both the academic year and summer components;
    (6) The planned timelines for accomplishing critical elements of 
the project;
    (7) The plan to ensure effective and efficient administration of 
the project, including, but not limited to, financial management, 
student records management, and personnel management;
    (8) The applicant's plan to use its resources and personnel to 
achieve project objectives and to coordinate the Upward Bound project 
with other projects for disadvantaged students;
    (9) The plan to work cooperatively with parents and key 
administrative, teaching, and counseling personnel at the target 
schools to achieve project objectives; and
    (10) A follow-up plan for tracking graduates of Upward Bound as 
they enter and continue in postsecondary education.
    (d) Applicant and community support (16 points). The Secretary 
evaluates the applicant and community support for the proposed project 
on the basis of the extent to which--
    (1) The applicant is committed to supplementing the project with 
resources that enhance the project such as: space, furniture and 
equipment, supplies, and the time and effort of personnel other than 
those employed in the project.
    (2) The applicant has secured written commitments of support from 
schools, community organizations, and businesses, including the 
commitment of resources that will enhance the project as described in 
paragraph (d)(1) of this section.
    (e) Quality of personnel (8 points). To determine the quality of 
personnel the applicant plans to use, the Secretary looks for 
information that shows--
    (1) The qualifications required of the project director, including 
formal training or work experience in fields related to the objectives 
of the project and experience in designing, managing, or implementing 
similar projects;
    (2) The qualifications required of each of the other personnel to 
be used in the project, including formal training or work experience in 
fields related to the objectives of the project;
    (3) The quality of the applicant's plan for employing personnel who 
have succeeded in overcoming barriers similar to those confronting the 
project's target population.
    (f) Budget and cost effectiveness (5 points). The Secretary reviews 
each application to determine the extent to which--
    (1) The budget for the project is adequate to support planned 
project services and activities; and
    (2) Costs are reasonable in relation to the objectives and scope of 
the project.
    (g) Evaluation plan (8 points). The Secretary evaluates the quality 
of the evaluation plan for the project on the basis of the extent to 
which the applicant's methods of evaluation--
    (1) Are appropriate to the project and include both quantitative 
and qualitative evaluation measures; and
    (2) Examine in specific and measurable ways the success of the 
project in making progress toward achieving its process and outcomes 
objectives.

(Approved by the Office of Management and Budget under control 
number 1840-0550)

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.32  How does the Secretary evaluate prior experience?

    (a) In the case of an application described in Sec. 645.30(a)(2), 
the Secretary reviews information relating to an applicant's 
performance under its expiring Upward Bound grant. This information 
includes information derived from annual performance reports, audit 
reports, site visit reports, project evaluation reports, and any other 
verifiable information submitted by the applicant.
    (b) The Secretary evaluates the applicant's prior experience in 
delivering services on the basis of the following criteria:
    (1) (3 points) Whether the applicant serves the number of 
participants agreed to under the approved application;
    (2) (3 points) The extent to which project participants have 
demonstrated improvement in academic skills and competencies as 
measured by standardized achievement tests and grade point averages;
    (3) (3 points) The extent to which project participants continue to 
participate in the Upward Bound Program until they complete their 
secondary education program;
    (4) The extent to which participants who complete the project, or 
were scheduled to complete the project, undertake programs of 
postsecondary education; and
    (5) (3 points) The extent to which participants who complete the 
project, or were scheduled to complete the project, succeed in 
education beyond high school, including the extent to 
[[Page 4753]] which they graduate from postsecondary education 
programs.

(Approved by the Office of Management and Budget under control 
number 1840-0550)

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.33  How does the Secretary set the amount of a grant?

    (a) The Secretary sets the amount of a grant on the basis of--
    (1) 34 CFR 75.232 and 75.233, for new grants; and
    (2) 34 CFR 75.253, for the second and subsequent years of a project 
period.
    (b) If the circumstances described in section 402A(b)(3) of the HEA 
exist, the Secretary uses the available funds to set the amount of the 
grant at the lesser of--
    (1) $190,000; or
    (2) The amount requested by the applicant.

(Authority: 20 U.S.C. 1070a-11)


Sec. 645.34  How long is a project period?

    (a) Except as provided in paragraph (b) of this section, a project 
period under the Upward Bound Program is four years.
    (b) The Secretary approves a project period of five years for 
applicants that score in the highest ten percent of all applicants 
approved for new grants under the criteria in Sec. 645.31.

(Authority: 20 U.S.C. 1070a-11)

Subpart E--What Conditions Must Be Met by a Grantee?


Sec. 645.40  What are allowable costs?

    The cost principles that apply to the Upward Bound Program are in 
34 CFR part 74, subpart Q. Allowable costs include the following if 
they are reasonably related to the objectives of the project:
    (a) In-service training of project staff.
    (b) Rental of space if space is not available at the host 
institution and the space rented is not owned by the host institution.
    (c) For participants in an Upward Bound residential summer 
component, room and board--computed on a weekly basis--not to exceed 
the weekly rate the host institution charges regularly enrolled 
students at the institution.
    (d) Room and board for those persons responsible for dormitory 
supervision of participants during a residential summer component.
    (e) Educational pamphlets and similar materials for distribution at 
workshops for the parents of participants.
    (f) Student activity fees for Upward Bound participants.
    (g) Admissions fees, transportation, Upward Bound T-shirts, and 
other costs necessary to participate in field trips, attend educational 
activities, visit museums, and attend other events that have as their 
purpose the intellectual, social, and cultural development of 
participants.
    (h) Costs for one project-sponsored banquet or ceremony.
    (i) Tuition costs for postsecondary credit courses at the host 
institution for participants in the summer bridge component.
    (j)(1) Accident insurance to cover any injuries to a project 
participant while participating in a project activity; and
    (2) Medical insurance and health service fees for the project 
participants while participating full-time in the summer component.
    (k) Courses in English language instruction for project 
participants with limited proficiency in English and for whom English 
language proficiency is necessary to succeed in postsecondary 
education.
    (l) Transportation costs of participants for regularly scheduled 
project activities.
    (m) Transportation, meals, and overnight accommodations for staff 
members when they are required to accompany participants in project 
activities such as field trips.
    (n) Purchase of computer hardware, computer software, or other 
equipment for student development, project administration and 
recordkeeping, if the applicant demonstrates to the Secretary's 
satisfaction that the equipment is required to meet the objectives of 
the project more economically or efficiently.
    (o) Fees required for college admissions applications or entrance 
examinations if--
    (1) A waiver of the fee is unavailable;
    (2) The fee is paid by the grantee to a third party on behalf of a 
participant.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.41  What are unallowable costs?

    Costs that may not be charged against a grant under this program 
include the following:
    (a) Research not directly related to the evaluation or improvement 
of the project.
    (b) Meals for staff except as provided in Sec. 645.40 (d) and (m) 
and in paragraph (c) of this section.
    (c) Room and board for administrative and instructional staff 
personnel who do not have responsibility for dormitory supervision of 
project participants during a residential summer component unless these 
costs are approved by the Secretary.
    (d) Room and board for participants in Veterans Upward Bound 
projects.
    (e) Construction, renovation or remodeling of any facilities.
    (f) Tuition, stipends, or any other form of student financial aid 
for project staff beyond that provided to employees of the grantee as 
part of its regular fringe benefit package.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.42  What are Upward Bound stipends?

    (a) An Upward Bound project may provide stipends for all 
participants who participate on a full-time basis.
    (b) In order to receive the stipend, the participant must show 
evidence of satisfactory participation in activities of the project 
including--
    (1) Regular attendance; and
    (2) Performance in accordance with standards established by the 
grantee and described in the application.
    (c) The grantee may prorate the amount of the stipend according to 
the number of scheduled sessions in which the student participated.
    (d) The following rules govern the amounts of stipends a grantee is 
permitted to provide:
    (1) For Regular Upward Bound projects and Upward Bound Math and 
Science Centers--
    (i) For the academic year component, the stipend may not exceed $40 
per month; and
    (ii) For the summer component, the stipend may not exceed $60 per 
month.
    (2) For Veterans Upward Bound projects, the stipend may not exceed 
$40 per month.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)


Sec. 645.43  What other requirements must a grantee meet?

    (a) Number of participants. (1) In each budget period, Regular 
Upward Bound projects shall serve between 50 and 150 participants and 
Upward Bound Math and Science projects shall serve between 50 and 75 
participants.
    (2) Veterans Upward Bound projects shall serve a minimum of 120 
veterans in each budget period.
    (3) The Secretary may waive the requirements of paragraphs (a)(1) 
and (a)(2) of this section if the applicant can demonstrate that the 
project will be more cost effective and consistent with the objectives 
of the program if a greater or lesser number of participants will be 
served.
    (b) Project director. (1) A grantee shall employ a full-time 
project director unless paragraph (b)(3) of this section applies.
    (2) The grantee shall give the project director sufficient 
authority to administer the project effectively. [[Page 4754]] 
    (3) The Secretary waives the requirement in paragraph (b)(1) of 
this section if the applicant demonstrates that the requirement will 
hinder coordination--
    (i) Among the Federal TRIO Programs; or
    (ii) Between the programs funded under sections 402A through 410 of 
the HEA and similar programs funded through other sources.
    (c) Recordkeeping. For each participant, a grantee shall maintain a 
record of--
    (1) The basis for the grantee's determination that the participant 
is eligible to participate in the project under Sec. 645.3;
    (2) The basis for the grantee's determination that the participant 
has a need for academic support in order to pursue successfully a 
program of education beyond secondary school;
    (3) The services that are provided to the participant;
    (4) The educational progress of the participant during high school 
and, to the degree possible, during the participant's pursuit of a 
postsecondary education program.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13).

Appendix--Analysis of Comments and Responses

(Note: This appendix will not be codified in the Code of Federal 
Regulations.)

    The following is an analysis of the comments and the changes in 
the regulations since publication of the NPRM on September 2, 1994 
(59 FR 45964). Substantive issues are discussed under the section of 
the regulations to which they pertain. Minor changes made to the 
language published in the NPRM--and suggested changes the Secretary 
is not legally authorized to make under applicable statutory 
authority--are generally not addressed.

What is the Upward Bound Program? (Sec. 645.1)

    Comments: Many commenters objected to the stated purpose in 
Sec. 645.1(a) of the proposed regulations because of the phrase ``to 
generate in program participants the skills and motivation necessary 
to persist in completing a program of secondary education and enter 
and complete a program of postsecondary education.'' Some commenters 
suggested that the phrase extends the stated purpose of the Upward 
Bound program beyond the scope of the purpose as defined in the law. 
Other commenters stated that this language would put an unwarranted 
burden upon grantees to collect enrollment and persistence data on 
participants through completion of a postsecondary education 
program.
    Discussion: The Secretary does not believe that the regulations 
extend the purpose of the program beyond that stated in the law. The 
Secretary believes that the most important measure of success in 
education beyond secondary school is the completion of a 
postsecondary education program, but the Secretary recognizes that 
there may be other measures of success in postsecondary education 
besides graduation.
    Changes: This section of the regulations has been changed to 
show that the purpose of Upward Bound is to ``complete a program of 
secondary education and to enter and succeed in a program of 
postsecondary education.''
    Comments: Several commenters objected to the omission of the 
words ``regional center'' in Sec. 645.1(b)(2) (Upward Bound Math and 
Science Centers) of the proposed regulations. The commenters did not 
want projects limited to local target areas.
    Discussion: The Secretary believes that it is unwise to add 
``regional centers'' to Sec. 645.1(b)(2) of the regulations since it 
would indicate that the Secretary would fund only projects with a 
regional concept. The regulations as written do not eliminate the 
regional concept; in fact, the Secretary supports the regional 
concept of Upward Bound Math and Science Centers. The Secretary 
believes, however, that substituting the word ``center'' for the 
word ``project'' will better emphasize the broader mission and scope 
of the Upward Bound Math and Science Centers.
    Changes: The word ``project'' has been replaced with the word 
``center'' throughout the regulations. The definition of ``target 
area'' has also been revised to reinforce the Secretary's support of 
regional centers.
    Who is eligible to participate in an Upward Bound project? 
(Sec. 645.3): Two commenters observed that Sec. 645.3 does not 
include a waiver that would allow an Upward Bound project to serve 
youths who are less than 13 or who have not completed eighth grade, 
if the secondary schools in the project's target area have an 
unusually high dropout rate. The commenters felt that this waiver, 
which has been in all Upward Bound regulations since 1977, should be 
included in these Upward Bound regulations.
    Discussion: The Secretary agrees with the commenters.
    Changes: Section 645.3 has been revised to include a waiver of 
the age limit requirement.
    Comments: One commenter objected to the omission of a provision 
that awards additional points, equal to 10 percent of the 
applicant's score, to applications from Guam, the Virgin Islands, 
American Samoa, the Trust Territory of the Pacific Islands, and the 
Northern Mariana Islands. The commenter stated that the bonus points 
enable the applicants from these areas to compete for TRIO projects.
    Discussion: The requirement that priority be given to proposals 
submitted by the territories was required by the Higher Education 
Amendments of 1992 but has been deleted from the Higher Education 
Act by the Higher Education Technical Amendments of 1993.
    Changes: None.

Documentation of Low-income Status. (Sec. 645.4(b) (1) and (2))

    Comments: One commenter stated that this section was confusing. 
The commenter suggested that the section leads one to believe that 
verification of low-income status must include a signed statement 
from a parent or guardian, an independent verification of family 
income, a signed financial aid application, and a signed income tax 
return. The commenter also stated that high school students would be 
required to complete financial aid applications. The commenter 
believes that the Secretary is requesting that all of these items be 
submitted in determining low-income status.
    Discussion: The commenter is in error. The conditions described 
in Sec. 645.4(b)(1) and (2) are alternative requirements, as 
indicated by the word ``or'' between the next to last and last 
conditions. The Secretary does not require all of these forms of 
documentation for each participant. Low-income status can be 
determined by submitting any one of the items listed.
    Changes: None.

What Definitions Apply to the Upward Bound Program? (Sec. 645.6)

    Comments: Several commenters disagreed with the definition of 
``participant.'' Some commenters stated that the proposed 
definition, which requires that an individual receive more than one 
month of project services prior to being considered a participant of 
the project, was too restrictive. Others stated that the new 
definition would require grantees to devote significant resources 
for follow-up activities for many more participants. They further 
stated that the restrictive definition would not allow project staff 
to determine when an individual has engaged in sufficient project 
activities necessary to demonstrate the individual's commitment to 
the project.
    Discussion: The Secretary agrees with the commenter that a fixed 
30-day period may be too inflexible. Therefore, the Secretary has 
adopted a dual time period depending on whether the student first 
participated in a summer component or, an academic year component.
    Because summer components only last six weeks and provide 
intensive services to students, the Secretary believes that if a 
project director allows a student to participate in that component 
for at least 10 days, which is approximately 25 percent of the 
summer component, the project director believes that the student is 
committed to the project. On the other hand, given the nature of an 
academic year component, the Secretary believes a 60-day period may 
be needed to establish an individual's commitment to the program.
    Changes: The Secretary has revised the definition of 
``participant.''
    Comments: Several commenters questioned whether the proposed 
definition of ``participant,'' which requires that a participant be 
enrolled in a target school, would prohibit individuals who reside 
in the target area but attend school outside of the target area from 
participating in an Upward Bound project. The commenters further 
stated that individuals whose families choose private education or 
participate in either voluntary or involuntary desegregation plans 
might be eliminated from receiving the benefits of an Upward Bound 
project. [[Page 4755]] 
    Discussion: The Secretary has determined that limiting 
participation in an Upward Bound project to individuals who are 
enrolled in a target school is too restrictive and may prevent some 
unintended individuals from benefitting from the services of an 
Upward Bound project. However, the Secretary still believes that it 
is important that the majority of individuals who are selected as 
participants be enrolled in a target school so they can benefit from 
the cooperative relationship that exists between the target school 
staff and the staff of the project.
    Changes: The Secretary has revised the definition of participant 
to allow individuals who reside in the target area to benefit from 
the services provided by an Upward Bound project.
    Comments: Some commenters stated that the definition of 
``Potential first-generation college student'' was not clear and 
would cause confusion in the field regarding foster parents and 
stepparents. The commenters suggested that the words ``natural or 
adoptive'' be inserted before parent(s) in both subparagraph (1) and 
(2) of the definition.
    Discussion: The Secretary agrees with the commenters.
    Changes: The definition has been revised to include ``natural or 
adoptive'' in the definition.
    Comments: One commenter expressed concern that the definition of 
``veteran'' was restrictive and did not allow all veterans to 
receive the services provided by an Upward Bound project.
    Discussion: The proposed definition of ``veteran'' has been used 
since the Upward Bound Veterans program was established in 1972. The 
Secretary believes that this definition remains as valid as it was 
in 1972 and sees no need to change the definition.
    Changes: None.

What Kinds of Projects Are Supported Under the Upward Bound 
Program? (Sec. 645.10)

    Comments: Several commenters suggested that the Secretary was 
expanding the expected outcomes of an Upward Bound Math and Science 
project by stating that a project is designed to prepare high school 
students for postsecondary education programs and for careers in the 
fields of math and science. The commenters stated that the Upward 
Bound Math and Science project should be required to prepare 
participants to enter postsecondary education programs prepared to 
study in fields of math and science. Preparation for careers in math 
and science is then the responsibility of the institution offering 
the postsecondary program.
    Discussion: The Secretary agrees with the commenters.
    Changes: The language of this section has been revised to 
reflect the suggestions of the commenters.

What Services Do All Upward Bound Projects Provide? (Sec. 645.11)

    Comments: Several commenters stated that Sec. 645.11 should be 
revised to eliminate literature, foreign language, and mathematics 
through pre-calculus from the required core curriculum of the Upward 
Bound projects.
    Discussion: The requirement for a core curriculum is mandated in 
section 402 of the Higher Education Act and cannot be revised by the 
Secretary.
    Changes: None.
    Comments: Several commenters suggested that the core curriculum 
required by Sec. 645.11 should be offered during the summer 
component, the academic year component, or both.
    Discussion: The Secretary will not specify when the curriculum 
should be offered. The Secretary believes that applicants should 
have the flexibility to design projects around the needs of the 
participants. Nonetheless, the Secretary clearly expects that most 
of the core curriculum will be offered in the summer component.
    Changes: None.

How Are Regular Upward Bound Projects Organized? (Sec. 645.12)

    Comments: Many commenters felt that Sec. 645.12(b)(2), which 
requires that the services described in Sec. 645.11 be offered on a 
daily basis, was not clear. The commenters stated that the 
regulations require projects to provide all services on a daily 
basis.
    Discussion: The Secretary agrees that the section is unclear. A 
project must provide some of the project's services and activities 
at least five days a week. It does not have to provide every service 
and activity on a daily basis.
    Changes: Section 645.12(b)(2) has been revised to require a 
project to provide participants with one or more of the services as 
described in Sec. 645.11 at least five days a week in a summer 
component. Section 645.12 (c)(1) has also been revised to allow a 
project to provide program participants with one or more of the 
services on a weekly basis throughout the academic year component.

What Additional Services Do Math and Science Upward Bound Centers 
Provide and How Are They Organized? (Sec. 645.13)

    Comments: Several commenters objected to the use of ``state-of- 
the-art'' computer facilities in Sec. 645.13(a)(1) because the 
phrase is vague and extremely subjective.
    Discussion: The Secretary agrees with the commenters.
    Changes: The phrase ``state-of-the-art'' has been deleted from 
this section of the regulations.
    Comments: Several commenters suggested that Sec. 645.13(a)(2) 
was too restrictive. The commenters stated that restricting project 
participants to contact with research faculty from the applicant 
institution prevents an institution that does not have research 
faculty from using persons in the community or private industry who 
have math and science expertise.
    Discussion: The Secretary agrees with the commenters that the 
language is restrictive and does not allow a project to use 
professionals in the community.
    Changes: Section 645.13(a)(2) has been revised to allow a 
project to use math and science professionals from the community.
    Comments: One commenter suggested that the Math and Science 
Upward Bound Project should allow participants the opportunity to 
participate in a summer bridge experience. The commenter felt that 
participants could benefit from the experience provided by a summer 
bridge component.
    Discussion: The Secretary agrees with the commenter; however, 
the Secretary feels that the courses offered to participants in a 
Upward Bound Math and Science bridge component should be courses 
that are math and science related.
    Changes: Language has been added to Sec. 645.13 that allows 
Upward Bound Math and Science projects to offer a summer bridge 
component, provided the courses a participant enrolls in are math 
and science related.

How Many Applications for an Upward Bound Project Award May an 
Eligible Applicant Submit? (Sec. 645.20)

    Comments: Two commenters stated that the proposed regulations 
redefined and extended the definition of different populations 
beyond that used in the Higher Education Amendments of 1992.
    Discussion: The Secretary disagrees with the commenters. The 
Secretary believes that the examples of different populations as 
defined in the NPRM are valid examples.
    Changes: The Secretary has deleted language that provided 
examples of different populations. The deletion of this language 
will place the responsibility for demonstrating that the project 
outlined in a second application will serve a different population 
on the applicant.

What selection criteria does the Secretary use? (Sec. 645.31)

    Comments: Several commenters proposed that Sec. 645.31(a)(1)(v), 
which requests information on families within the target area, be 
changed to the collection of information on individuals. The 
commenters felt that information on families was not readily 
available.
    Discussion: The Secretary agrees with the commenters.
    Changes: The criterion that requests the education attainment 
levels of adults has been changed to reflect the collection of data 
on ``adults'' rather than data on families.
    Comments: Several commenters suggested that Sec. 645.31(a)(2) be 
revised to include an Upward Bound Math and Science target area as 
well as Upward Bound Math and Science target schools. The commenters 
felt that by adding target areas to the criterion the applicant 
would be able to better document the need for a project, if that 
project proposes to serve participants from large geographical areas 
such as States or regions.
    Discussion: The Secretary agrees with the commenters.
    Changes: Section 645.31(a)(2) has been revised to allow 
applicants to provide data that consider the target area as well as 
the target schools.
    Comments: Many commenters suggested that Sec. 645.31(a)(1) and 
Sec. 645.31(c) could be improved by reordering certain questions to 
encourage brevity in proposals and a more logical flow in 
applications. The commenters also expressed the view that reordering 
the criteria would allow the peer reviewers to better evaluate the 
application. [[Page 4756]] 
    Discussion: The Secretary agrees with the commenters.
    Changes: Section 645.31 has been revised to address the 
suggested reordering. The Secretary has also revised several of the 
subsections to assure that each subsection is clear.
    Comments: Several commenters suggested that the numerical score 
for each individual subsection under the ``need'' and ``plan of 
operation'' criteria in Sec. 645.31 should be included in the 
regulations. The commenters feared that without a score, the peer 
reviewers would not properly score the applications.
    Discussion: The Secretary does not agree that the inclusion of 
subsection scores would greatly assist the peer reviewers in 
properly scoring applications. The Secretary acknowledges that in 
these cases the weighting for each subsection is roughly equal.
    Changes: None.
    Comments: Several commenters suggested that reference to 
performance on aptitude tests should not be included in 
Sec. 645.31(a)(2)(i). One commenter suggested that the inclusion of 
scores from aptitude tests as part of the need criteria may suggest 
that Upward Bound Math and Science projects are designed to serve 
only students who are performing at the highest level in their 
secondary education program. Other commenters suggested that 
``aptitude'' testing is too politically sensitive and the term 
should be avoided.
    Discussion: The Secretary disagrees with the commenters. The 
Secretary does not believe that the inclusion of ``aptitude tests'' 
in these regulations would in any way suggest that the Math and 
Science Upward Bound Centers are designed to serve students who are 
performing at the highest level in their secondary education 
program. As used in this criterion, the Secretary sought to give 
greater priority to projects that were serving students who were 
attending high schools that had relatively low average scores on 
standardized tests.
    Changes: The Secretary has modified the criteria to more fully 
describe the use of tests in measuring differences in school 
environments.
    Comments: Several commenters suggested that Sec. 645.31(c)(3) 
should be revised to require a follow-up plan for tracking the 
academic accomplishments of participants only after they have 
completed the Upward Bound project. The commenters stated that the 
proposed regulations would require the project to follow up on all 
persons who participated in the project. The commenters also felt 
that requiring the project to follow up on all participants would be 
extremely costly and place a considerable collection burden on 
projects.
    Discussion: The Secretary agrees that mandatory postsecondary 
tracking of all persons participating in a project may be 
cumbersome.
    Changes: Section 645.31(c)(3) has been reordered to 
Sec. 645.31(c)(10) and has been changed to require a follow-up plan 
for tracking only those participants who are graduates of the Upward 
Bound project.
    Comments: One commenter suggested that ``applicant community'' 
in Sec. 645.31(c)(4) be changed to ``target area community.'' The 
commenter felt that the phrase ``applicant community'' left the 
reader of the regulations confused as to the specific community that 
needed to be informed, i.e., university target area community, or 
any other self-described community identified by the applicant.
    Discussion: The Secretary agrees that this phrase may be 
confusing.
    Changes: The Secretary has revised the criterion to describe 
more specifically the applicant's institutional community and the 
individuals and groups that should be informed throughout the target 
area.
    Comments: One commenter suggested that the word ``appropriate'' 
as a modifier of ``timelines'' in Sec. 645.31(c)(6) should be 
deleted because varied and different interpretations can be inferred 
by the applicant and the peer reviewers.
    Discussion: The Secretary agrees with this commenter. The 
Secretary believes that it is the applicant's responsibility to 
present a clear and concise plan that contains timelines that cover 
all of the major services to be provided. The criterion will be 
amended to make this clarification.
    Changes: The Secretary has revised the criterion to read--
assessing the quality of the planned timelines for accomplishing 
critical elements of the project.
    Comments: Several commenters suggested that the word ``quality'' 
be deleted from the applicant's plan in Sec. 645.31(c)(9). The 
commenters suggest deleting the word ``quality'' because it is 
redundant and can be interpreted in different ways by the readers.
    Discussion: The Secretary agrees with the commenters that use of 
the term is redundant but at the same time all of the sub-criteria 
in the Plan of Operation sub-section are about ``quality'' plans 
which will produce intended project outcomes. The Secretary believes 
that the evaluation of the quality of all parts of the plan of 
operation is at the heart of the peer review process.
    Changes: Because the word quality is a part of the opening 
sentence in Sec. 645.31(c), the word quality has been deleted from 
this section because it is redundant.
    Comments: One commenter suggested that the phrase ``quality 
control'' be deleted from Sec. 645.31(c)(8). The commenter felt that 
this term was not normally used to define an educational process or 
procedure. The commenter also indicated that the term could be 
misinterpreted since no definition is provided.
    Discussion: The Secretary disagrees with the commenter. 
``Quality control'' is a term used to define processes that lead to 
improved service delivery and better outcomes. It is not unfamiliar 
to educators but is probably more associated with the business 
sector. However, the Secretary will delete the words ``quality 
control'' from this criterion since the criterion requires that the 
applicant present an effective and efficient plan for the 
administrative oversight of the project, which would imply a measure 
of quality control.
    Changes: The criterion has been revised for purposes of greater 
clarity.
    Comments: One commenter noted that the regulations do not 
include a request for a plan to recruit underrepresented students. 
The commenter stated that by not including a provision that would 
require applicants to submit such a plan it might imply that an 
Upward Bound project would not focus on providing underrepresented 
students with an opportunity to be successful in postsecondary 
education.
    Discussion: The Secretary disagrees with the commenter. The 
Secretary believes that the Upward Bound program has and will 
continue to provide services to exclusively underrepresented 
populations. Thus a plan to do this is unnecessary.
    Changes: None.
    Comments: Several commenters felt that Sec. 645.31(e)(1) would 
prevent projects from considering the work experience of individuals 
when hiring the project director. Another commenter felt that the 
requirement that directors have formal training in fields related to 
the objectives of the projects was too restrictive and would require 
all Upward Bound Math and Science directors to have formal education 
degrees in the fields of math and science.
    Discussion: The Secretary agrees with the commenters that work 
experience should be considered when evaluating and determining the 
suitability of a project director.
    Changes: The Secretary has revised this section to include work 
experience. The inclusion of work experience in this section will 
allow persons to substitute for formal training in fields related to 
the objectives of the project.
    Comments: Several commenters suggested that clarity of 
Sec. 645.31(g)(2) could be improved by combining the two 
subsections.
    Discussion: The Secretary agrees with the commenters.
    Changes: The two subsections have been combined into one 
statement.

How Does the Secretary Evaluate Prior Experience? (Sec. 645.32)

    Comments: Several commenters suggested that the word 
``consistently'' in Sec. 645.32(b)(1) be deleted. The commenters 
felt that the word ``consistently'' was not defined and would have 
to be interpreted by each project.
    Discussion: The Secretary agrees with the commenter.
    Changes: The word ``consistently'' has been deleted from the 
section.
    Comments: Many commenters suggested that aptitude and motivation 
as stated in Sec. 645.32(b)(2) are difficult to measure. The 
commenters further suggested that this section of the regulations 
should emphasize the achievement levels and academic progress of 
participants. Several commenters suggested new wording for the 
section; some asked for the deletion of aptitude and motivation 
while others suggested that motivation remain a part of the section. 
One commenter further suggested that project retention, high school 
graduation, postsecondary enrollment and success in postsecondary 
education are better indicators of academic growth.
    Discussion: The Secretary agrees with the commenters who 
suggested that improvements in motivation and aptitude are difficult 
to measure. The Secretary, however, believes that the project must 
be held accountable for assisting participants in the 
[[Page 4757]] project to develop skills that are necessary for entry 
into an educational program beyond high school. The Secretary also 
agrees with the commenter who suggested that a project's success 
should be measured by the success of the project's participants.
    Changes: The Secretary has deleted aptitude and motivation from 
this criterion. The criterion now focuses on demonstrated 
improvement in academic skills and competencies as measured by 
standardized achievement tests and grade point averages.
    Comments: Many commenters expressed concerns in 
Sec. 645.32(b)(3) regarding the Department's efforts to highlight 
the need for retention of participants in the projects throughout 
their secondary school experience. Some commenters thought that the 
inclusion of retention in the project as a part of the prior 
experience criteria would affect the manner in which projects 
selected participants. They expressed concern that higher risk 
participants traditionally served by Upward Bound projects would be 
overlooked. Others felt that if this criterion remains in the prior 
experience section, some projects will be more likely to serve 
students who have higher motivation but who may not be the students 
with the greatest need for project services. One commenter asks that 
the Secretary consider the harm that this requirement could have on 
the Upward Bound Program and to delete the inclusion of this 
requirement until much more discussion and study have taken place.
    Discussion: The Secretary disagrees with the commenters. The 
Secretary believes that the retention of participants in a project 
is significant for determining the success of a project. The 
Secretary believes that the consequences suggested by commenters 
that would arise if this criteria is retained do not override the 
disadvantages posed by a high turnover of participants. As in many 
intervention programs, it has been proven that the longer the 
participation, the far more likely is the chance for success.
    Changes: This criteria has been revised for purposes of improved 
clarity.
    Comments: Several commenters suggested that, as written, 
subsections (b)(4) and (b)(5) require that every participant, 
whether or not they have completed high school and the Upward Bound 
program would need to be tracked to determine whether they entered 
and completed postsecondary education. Instead, they suggested 
postsecondary continuation should be tracked for only Upward Bound 
and high school graduates.
    Discussion: The Secretary's intent was not to have projects 
track Upward Bound participants who drop from the project prior to 
graduation from high school. However, the Secretary believes that 
Sec. 645.32 (b)(4) and (b)(5) best measure the success of a project 
by comparing participants who enroll in a postsecondary education 
program and do well in college against all project participants, 
both those who complete the project and those who were initially 
scheduled to complete the project.
    Changes: The criterion has been revised for purpose of clarity.

How Long Is a Project Period? (Sec. 645.34)

    Comments: One commenter suggested that the language in 
Sec. 645.34(b) be changed to include ``highest 10 percent of all 
applicants approved for new grants''.
    Discussion: The length of an Upward Bound project period is 
defined in the Higher Education Act. Section 645.34(b) of these 
regulations merely reflects the statutory requirement.
    Changes: None.

What Are Allowable Costs? (Sec. 645.40)

    Comments: Many commenters suggested that the Secretary amend 
Sec. 645.40 of the proposed regulations to include college admission 
fees and college entrance examination fees in the list of allowable 
costs.
    Discussion: The Secretary has found that college admissions 
application fees are often barriers that prevent low-income students 
from filing applications to postsecondary programs. The Secretary 
has also found that waivers of college admissions application fees 
are not always available to low-income students. Some State-
supported institutions are legally prohibited from waiving admission 
application fees, and private institutions may or may not waive 
admissions application fees for low-income applicants. The high cost 
of admission application fees and the unavailability of fee waivers 
have the detrimental effect of preventing Upward Bound participants 
from completing applications to certain four-year colleges and 
universities. The Secretary has concluded that admissions fees 
should be included in the list of allowable costs under certain 
circumstances described in the regulations.
    Upward Bound participants have historically benefited from 
having testing materials available in order to prepare students for 
the SAT, ACT, and other standardized tests. The Secretary believes 
that it is also appropriate to allow Upward Bound projects to pay 
for testing administered by a third party. Therefore, the Secretary 
has included entrance examination fees in the circumstances 
described in the regulations in the list of allowable costs.
    Changes: The Secretary has changed Sec. 645.40 so that the list 
of allowable costs includes fees required for college admissions 
applications or entrance examinations if (1) a waiver of the fee is 
unavailable; and (2) the fee is paid by the grantee to a third party 
on behalf of the participant.
    Comments: One commenter suggested that allowable costs be 
expanded to include costs to cover medical insurance and health 
services fees for participants during the academic year component. 
The commenter stated that the regulations should be expanded to 
allow for coverage in the event of accidents during visits to campus 
sites and while on field trips.
    Discussion: The Secretary believes that students participating 
in an Upward Bound project should be protected by medical insurance 
and accident insurance at all times while participating in project 
activities. The Secretary believes that Sec. 645.40(j) (1) and (2) 
is inclusive enough to cover participants at all times while 
participating in a project activity.
    Changes: None.
    Comments: One commenter questioned the requirement of 
Sec. 645.40(h), which limits the grantee to one project-sponsored 
banquet or ceremony per year. The commenter suggested that projects 
be given the flexibility to provide as many banquets or ceremonies 
as they feel will motivate students toward successful completion of 
secondary and postsecondary education.
    Discussion: The Secretary believes that motivational activities 
such as banquets should be supported by grant funds. However, the 
Secretary believes that one banquet paid for out of grant funds is 
reasonable.
    Changes: None.
    Comments: One commenter suggested that the word ``bridge'' 
should be deleted from Sec. 645.40(i). The commenter's justification 
for deleting the word ``bridge'' is to allow beginning seniors the 
opportunity to take college credit courses during the summer 
component. The commenter felt that the program should be responsible 
for providing funds for participants while they pursue a secondary 
diploma and postsecondary program concurrently.
    Discussion: The Secretary believes that all students who are 
able to enroll in a secondary education program and postsecondary 
education program concurrently should do so. However, the Secretary 
does not believe that program funds should be used to support the 
cost of tuition until the student has completed a program of 
secondary education.
    Changes: None.
    Comments: One commenter stated that Sec. 645.40 should allow the 
project to pay for meals for parents of participants when these 
persons volunteer to serve as staff during field trips. The 
commenter felt that when parents serve as volunteers on field trips 
they should receive meals like other staff members.
    Discussion: The Secretary agrees with the commenter that 
volunteers, whether parents or other members of the community, 
should at least receive meals while accompanying students on field 
trips. The Secretary believes that involvement in the program by 
parents is key to the success of a project.
    Changes: None. Parents will be voluntary staff members and can 
receive meals as allowed under Sec. 645.40(m) of these regulations.
    Comments: Several commenters suggested that Sec. 645.40(k) be 
deleted since the legislation and Sec. 645.11(b)(9) of the 
regulations allow and encourage a project to provide programs and 
activities that are specifically designed for individuals with 
limited English proficiency. The commenter argued that 
Sec. 645.40(k) contradicts Sec. 645.11(b)(9).
    Discussion: The Secretary partially agrees with the commenters. 
However, the Secretary does wish to reemphasize the point that 
instruction in the English language for students who need to improve 
their proficiency in order to pursue postsecondary education may be 
offered by the project.
    Changes: The section has been revised to agree with 
645.11(b)(9).

What Are Unallowable Costs? (Sec. 645.41)

    Comments: One commenter suggested that Sec. 645.41(f) be revised 
to allow for tuition, [[Page 4758]] stipends or any other form of 
student financial support for project staff ``beyond that provided 
to employees of a grantee as a part of its regular fringe benefit 
package.'' The commenter did not offer any reason for suggesting the 
change.
    Discussion: The Secretary disagrees with the commenter. A 
project staff member should receive fringe benefits which are 
consistent with the standard package offered to other employees of 
the grantee.
    Changes: None.

What Are Upward Bound Stipends? (Sec. 645.42)

    Comments: Several commenters suggested raising the stipend 
amount given to Upward Bound participants during the summer to 
$80.00 per month to compete with summer jobs.
    Discussion: The legislation authorizing the Upward Bound Program 
establishes the maximum amounts allowable for monthly payment of 
stipends.
    Changes: None
    Comments: One commenter noted that the legislation authorizes 
the payment of stipends in the amount of up to $60 per month during 
the months of June, July, and August. However, the proposed 
regulations (Sec. 645.42(d)(1)(ii)) do not specify that June, July, 
and August constitute a summer session.
    Discussion: The Secretary agrees with the commenter that the law 
authorizes the payment of up to $60 per month during the summer 
component, which occurs for a six-week period sometime during the 
months of June, July, and August. The regulations authorize the 
payment of up to $60 per month, prorated as seen necessary, during 
the time the summer component is in session.
    Changes: None.

What Other Requirements Must a Grantee Meet? (Sec. 645.43)

    Comments: One commenter suggested that the word ``academic'' be 
deleted from Sec. 645.43(c)(2) of the proposed regulations. The 
commenter stated that in order to take a holistic approach to a 
participant's need, emotional, cultural, social, as well as 
academic, support must be included.
    Discussion: The Secretary agrees that a Upward Bound project 
should be designed to meet the needs of each participant. The 
Secretary believes that the services that a project can provide to 
participants as outlined in Secs. 645.11 and 645.14 allow a project 
to meet the total needs of a participant. Section 645.43(c) does not 
establish the required services that a project must provide to 
participants, but outlines the recordkeeping requirements. All 
participants of an Upward Bound project must meet the eligibility 
requirements as defined in Sec. 645.3 of the regulations. Section 
645.43(c) establishes that, at a minimum, a project must keep 
records which document that all participants who enroll in an Upward 
Bound project have a need for academic support as well as meet the 
other eligibility requirements of Sec. 645.3. This does not preclude 
maintaining other information on participants.
    Changes: None.
    Comments: A number of commenters suggested that following a 
student's educational progress throughout postsecondary education 
would be very time consuming and potentially very costly. The 
commenters also stated that this requirement exceeds the legislative 
authority for the program.
    Discussion: The Secretary believes that section 402(C) of the 
Higher Education Act gives the Secretary the authority to require 
that Upward Bound projects establish procedures for follow-up on 
participants who have completed the Upward Bound project to 
determine their success in postsecondary education. The Secretary 
believes that the level of tracking necessary once an Upward Bound 
graduate is enrolled should consist of annual contacts to determine 
persistence or completion.
    The Secretary believes that a system of follow-up is necessary 
for determining the effectiveness of the Upward Bound Program. This 
system should include or provide a method for determining if an 
Upward Bound participant who completed the project and enrolled in a 
postsecondary education program remains enrolled in the 
postsecondary program to completion.
    Changes: None.

[FR Doc. 95-1689 Filed 1-23-95; 8:45 am]
BILLING CODE 4000-01-P