[Federal Register Volume 60, Number 123 (Tuesday, June 27, 1995)]
[Rules and Regulations]
[Pages 33300-33304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15655]




[[Page 33299]]

_______________________________________________________________________

Part III





Department of Education





_______________________________________________________________________



34 CFR Part 263



Indian Fellowship and Professional Development Programs; Final Rule and 
New Awards Applications for FY 1995; Notice

  Federal Register / Vol. 60, No. 123 / Tuesday, June 27, 1995 / Rules 
and Regulations   
[[Page 33300]] 

DEPARTMENT OF EDUCATION

RIN 1810-AA79

34 CFR Part 263


Indian Fellowship and Professional Development Programs

AGENCY: Department of Education.

ACTION: Final regulations.

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

SUMMARY: The Secretary amends the regulations that govern the 
competition of new fiscal year (FY) 1995 grants for the Indian 
Fellowship Program. This program is authorized under Title IX of the 
Elementary and Secondary Education Act (ESEA) of 1965, as amended by 
the Improving America's Schools Act of 1994, enacted October 20, 1994. 
These regulations identify eligible applicants for the program and the 
specific application and other program requirements that must be met in 
order to be considered for funding. These regulations also provide the 
requirements for the new payback provisions that apply to both the 
Indian Fellowship Program and the Professional Development Program. 
These regulations will govern the grant application process for new FY 
1995 awards for the Indian Fellowship Program. In addition, the new 
payback provisions apply to the FY 1995 Professional Development 
Program.

EFFECTIVE DATE: These regulations take effect July 27, 1995.

FOR FURTHER INFORMATION CONTACT: Cathie Martin. Telephone: (202) 260-
1683. 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: On October 20, 1994, the Professional 
Development Program and the Indian Fellowship Program were 
substantially revised and recodified as, respectively, sections 9122 
and 9123 of Subpart 2 of Part A of Title IX of the Elementary and 
Secondary Education Act of 1965, as amended by Pub. L. 103-382. These 
regulations identify eligible applicants for the Indian Fellowship 
program and address the specific program requirements, including 
application requirements and requirements concerning the new payback 
provisions that apply to the Indian Fellowship Program, that must be 
met in order to be considered for funding.
    In addition, certain of these regulations govern the Professional 
Development Program (Section 263.3 Definitions, and sections 263.1(b)-
(c) and 263.35-263.37, concerning the new payback provisions that also 
apply to this program).

Waiver of Proposed Rulemaking

    In accordance with the Administrative Procedure Act (5 U.S.C. 553), 
it is the practice of the Department of Education to offer interested 
parties the opportunity to comment on proposed regulations. However, in 
order to make timely grant awards in fiscal year (FY) 1995, the 
Assistant Secretary, in accordance with section 437(d)(1) of the 
General Education Provisions Act, has decided to issue these final 
regulations, which will apply only to the FY 1995 grant competitions in 
the Indian Fellowship and Professional Development Programs. These 
regulations are being published as final regulations in their entirety 
(rather than amending portions of the existing regulations) for the 
convenience of the applicants in these competitive grant programs. In 
addition, certain provisions of these regulations govern the FY 1995 
Professional Development Program.
    The Assistant Secretary will publish, later this year, a notice of 
proposed rulemaking (NPRM) for these programs and will offer interested 
parties the opportunity to comment. After comments are considered, 
another final rule will be published that will govern the grant 
competitions for FY 1996 and succeeding fiscal years. In developing the 
NPRM, the Assistant Secretary is interested in receiving suggestions 
for improving these regulations. Please send your suggestions to Cathie 
Martin, Office of Indian Education, U.S. Department of Education, 600 
Independence Avenue, SW, Portals Building, Room 4300, Washington, D.C. 
20202-6335.

Executive Order 12866

    These regulations have been reviewed in accordance with Executive 
Order 12866. Under the terms of the order the Secretary has assessed 
the potential costs and benefits of this regulatory action.
    The potential costs associated with these regulations are those 
resulting from statutory requirements and those determined by the 
Secretary to be necessary for administering this program effectively 
and efficiently. Burdens specifically associated with information 
collection requirements, if any, are identified and explained elsewhere 
in this preamble under the heading Paperwork Reduction Act of 1980.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of these regulations, the Secretary has determined 
that the benefits of the regulations justify the costs.

Assessment of Educational Impact

    Based on the Department's review, the Secretary has determined that 
these regulations 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 263

    Grant programs-education, Indians-education, Reporting and 
recordkeeping requirements, Scholarships and fellowships.
(Catalog of Federal Domestic Assistance Numbers: 84.087 Indian 
Education--Fellowships for Indian Students; and 84.299 Indian 
Education--Special Programs)

    Dated: June 9, 1995.
Thomas W. Payzant,
Assistant Secretary for Elementary and Secondary Education.

    The Secretary amends Title 34 of the Code of Federal Regulations by 
revising Part 263 to read as follows:

PART 263--INDIAN FELLOWSHIP AND PROFESSIONAL DEVELOPMENT PROGRAMS

Subpart A--General

Sec.
263.1  What are the Indian Fellowship and Professional Development 
Programs?
263.2  Who is eligible to apply under the Indian Fellowship Program?
263.3  What definitions apply to the Indian Fellowship and 
Professional Development Programs?
263.4  What are the allowable fields of study in the Indian 
Fellowship Program?
263.5  What does a fellowship award include?
263.6  What is the time period for a fellowship award?
Subpart B--How Does the Secretary Select Fellows?
263.20  What priority is given to certain applicants?
263.21  What should the fellowship application contain?
263.22  How does the Secretary evaluate applications?
Subpart C--What Conditions Must be Met by Fellows?
263.30  What are the basic requirements of a Fellow?
263.31  What information must be submitted after a fellowship is 
awarded?
263.32  What are the requirements for a leave of absence?
263.33  What is required for continued funding under a fellowship?
263.34  When is a fellowship discontinued?
263.35  What are the payback requirements? [[Page 33301]] 
263.36  When does payback begin?
263.37  What are the payback reporting requirements?

Subpart D--How are Fellowship Payments Made?

263.40  How are payments made?
    Authority: 20 U.S.C. 7832 and 7833, unless otherwise noted.

Subpart A--General


Sec. 263.1  What are the Indian Fellowship and Professional Development 
Programs?

    (a) The Indian Fellowship Program provides fellowships to enable 
Indian students to pursue a course of study leading to--
    (1) A postbaccalaureate degree in medicine, law, education, 
psychology, clinical psychology, or related field; or
    (2) An undergraduate or postbaccalaureate degree in business 
administration, engineering, natural resources, or a related field.
    (b) The Professional Development Program provides grants to 
eligible entities to--
    (1) Increase the number of qualified Indian individuals in 
professions that serve Indian people;
    (2) Provide training to qualified Indian individuals to become 
teachers, administrators, teacher aides, social workers, and ancillary 
educational personnel; and
    (3) Improve the skills of qualified Indian individuals who serve in 
the capacities described in paragraph (b)(2) of this section.
    (c) The Indian Fellowship and Professional Development Programs 
require individuals who receive training under either program to--
    (1) Perform work related to the training received under either 
program and that benefits Indian people, or to repay all or a prorated 
part of the assistance received under the program; and
    (2) Report to the Secretary on the individual's compliance with the 
work requirement.

(Authority: 20 U.S.C. 7832 and 7833)


Sec. 263.2  Who is eligible to apply under the Indian Fellowship 
Program?

    In order to be eligible for a fellowship an applicant must be--
    (a) An Indian as defined in Sec. 263.3 of this part;
    (b) A United States citizen; and
    (c)(1) Currently in attendance or have been accepted for admission 
as a full-time undergraduate or graduate student at an accredited 
institution of higher education in one of the fields listed in 
Sec. 263.4 or a related field; and
    (2) Recognized by the institution as a degree candidate.
    (d) Eligible under 34 CFR 75.60.
(Authority: 20 U.S.C. 7833; 20 U.S.C. 1221e-3(a)(1) and 3474)


Sec. 263.3  What definitions apply to the Indian Fellowship and 
Professional Development Programs?

    The following definitions apply to the Indian Fellowship and the 
Professional Development Programs:
    Department means the U.S. Department of Education.
    Dependent allowance means costs for the care of minor children who 
reside with the Fellow.
    Expenses means tuition and required fees; required university 
health insurance; room, personal living expenses, and board at or near 
the institution; dependent allowance; instructional supplies; and 
reasonable travel and research costs associated with doctoral 
dissertation completion.
    Fellow means the recipient of a Fellowship under the Indian 
Fellowship Program. The term ``Fellow'' also includes individual 
project participants under the Professional Development Program with 
regard to the payback provisions contained in sections 263.35-263.37 of 
this part.
    Fellowship means an award under the Indian Fellowship Program.
    Full course load means the number of credit hours that the 
institution requires of a full-time student.
    Full-time student means a student who--
    (1) Is a degree candidate;
    (2) Carries a full course load; and
    (3) Is not employed for more than 20 hours a week.
    Good standing means a cumulative grade point average of at least 
2.0 on a 4.0 grade point scale in which failing grades are computed as 
part of the average, or another appropriate standard established by the 
institution.
    Graduate degree means a postbaccalaureate degree awarded by an 
institution of higher education beyond the undergraduate level.
    Indian means an individual who is--
    (1) A member of an Indian tribe or band, as membership is defined 
by the Indian tribe or band, including any tribe or band terminated 
since 1940, and any tribe or band recognized by the State in which the 
tribe or band resides; or
    (2) A descendant, in the first or second degree, of an individual 
described in paragraph (1) of this definition; or
    (3) Considered by the Secretary of the Interior to be an Indian for 
any purpose; or
    (4) An Eskimo, Aleut, or other Alaska Native; or
    (5) A member of an organized Indian group that received a grant 
under the Indian Education Act of 1988 as it was in effect October 19, 
1994.
    Institution of higher education means an accredited college or 
university within the United States leading to a baccalaureate or 
postbaccalaureate degree.
    Payback means work-related service or cash reimbursement to the 
Department of Education for the training received under the Indian 
Fellowship or Professional Development Program.
    Secretary means the Secretary of the Department of Education or an 
official or employee of the Department acting for the Secretary under a 
delegation of authority.
    Stipend means that portion of an award that is used for room and 
board and personal living expenses.
    Undergraduate degree means a baccalaureate (bachelor's) degree 
awarded by an institution of higher education.

(Authority: 20 U.S.C. 7832 and 7833)


Sec. 263.4  What are the allowable fields of study in the Indian 
Fellowship Program?
    (a) The following are allowable fields for an undergraduate degree 
under this program:
    (1) Business Administration.
    (2) Engineering.
    (3) Natural Resources.
    (b) The following are allowable fields for a graduate degree under 
this program:
    (1) Medicine.
    (2) Clinical Psychology.
    (3) Law.
    (4) Education.
    (5) Psychology.
    (6) Engineering.
    (7) Natural Resources.
    (8) Business Administration.
    (c) The Secretary considers under paragraphs (a) and (b), on a 
case-by-case basis, the eligibility of applications for fellowships in 
related fields of study.

(Authority: 20 U.S.C. 7833)


Sec. 263.5  What does a fellowship award include?

    (a) The Secretary awards a fellowship in an amount up to, but not 
more than, the expenses as defined in this part. The assistance 
provided by the program either--
    (1) Fully finances a student's educational expenses; or
    (2) Supplements other financial aid, including Federal funding, 
other than loans, for meeting educational expenses.
    (b) The Secretary announces the expected maximum amounts for 
subsistence and other fellowship costs in the annual application notice 
published in the Federal Register.

(Authority: 20 U.S.C. 7833) [[Page 33302]] 


Sec. 263.6  What is the time period for a fellowship award?

    (a) The Secretary awards a fellowship for a period of time not 
exceeding--
    (1) Four academic years for an undergraduate or doctorate degree; 
and
    (2) Two academic years for a master's degree.
    (b) With prior approval from the Secretary, summer school may be 
allowed for eligible continuation students after completion of the 
first academic year.

(Authority: 20 U.S.C. 7833)

Subpart B--How Does the Secretary Select Fellows?


Sec. 263.20  What priority is given to certain applicants?

    The Secretary awards not more than 10 percent of the fellowships, 
on a priority basis, to persons receiving training in guidance 
counseling with a specialty in the area of alcohol and substance abuse 
counseling and education.

(Authority: 20 U.S.C. 7833)


Sec. 263.21  What should the fellowship application contain?

    In addition to the requirements specified in Sec. 263.22 of this 
part, an applicant shall provide evidence that--
    (a) The applicant is Indian as defined in Sec. 263.3 of this part. 
Evidence may be in the form of--
    (1)(i) A copy of the applicant's documentation of tribal enrollment 
or membership; or
    (ii) A copy of the parent's or grandparent's documentation of 
tribal enrollment or membership, with supporting birth certificates or 
similar documents showing the applicant's descendance from the enrolled 
member;
    (2) A letter of certification on official letterhead with the 
appropriate signature from a Federally or State recognized tribe or 
band; or
    (3) A certificate of degree of Indian blood (CDIB) issued by an 
authorized representative of the Bureau of Indian Affairs or an 
official of a Federally recognized tribe.
    (b)(1) The applicant is currently in attendance or has been 
accepted for admission as a full-time student at an accredited 
institution of higher education in one of the eligible fields of study 
listed in Sec. 263.4; or
    (2) For an applicant who has not yet been accepted for admission, 
documentation that the applicant is accepted by an accredited 
institution of higher education by a date to be specified by the 
Secretary.
    (c)(1) The most current official high school and, if appropriate, 
undergraduate transcripts, for undergraduate applicants; or
    (2) The most current official undergraduate and, if appropriate, 
graduate transcripts, for graduate applicants.
    (d) The certification required under 34 CFR 75.61.

(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7833; 20 U.S.C. 1221e-3(a)(1) and 3474).


Sec. 263.22  How does the Secretary evaluate applications?

    (a) The Secretary reviews and ranks an application with other 
applications for the same field and related fields of study.
    (b) The following criteria, with the total number of points 
available in parenthesis, are used to evaluate an application for a new 
fellowship award:
    (1) Official academic record (60 points). The Secretary considers 
the quality of the applicant's academic record by reviewing--
    (i) The applicant's grade point average and, if applicable, 
standardized test scores, such as the Scholastic Aptitude Test (SAT), 
American College Testing Assessment Program (ACT), Graduate Record 
Examination (GRE), Law School Admissions Test (LSAT), Medical College 
Admission Test (MCAT), and achievement tests.
    (ii) The applicant's official transcripts and any grade reports.
    (2) Letters of recommendation (15 points). The Secretary considers 
the applicant's potential for success in completing the academic 
requirements for his or her field of study by reviewing one letter of 
recommendation from each of the following categories--
    (i) A school principal, teacher, academic or non-academic 
instructor or counselor, a college professor, or academic advisor;
    (ii) A member of the community or civic leader who has observed the 
applicant in educational, social or civic activities; and
    (iii) A tribal representative or an Indian community member.
    (3) Commitment essay (25 points). The Secretary considers the 
applicant's commitment by reviewing an essay, written by the applicant, 
that addresses--
    (i) The applicant's career goals and why the chosen field of study 
will benefit Indian people;
    (ii) The applicant's life experiences, and personal and family 
expectations that will enhance the applicant's anticipated career 
accomplishments; and
    (iii) The applicant's anticipated commitment to providing service 
to Indian people.


(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7833)

Subpart C--What Conditions Must be Met by Fellows?


Sec. 263.30  What are the basic requirements of a Fellow?

    A Fellow shall--
    (a) Start school during the first semester of the award at the 
institution named on the grant award document and complete at least one 
full academic term;
    (b) Submit to the Secretary two copies of his or her official grade 
report at the close of each academic term, and upon completion of the 
training program, at that institution;
    (c) Submit an annual continuation application, in the form and 
timeframes specified by the Secretary, to request funding for each 
remaining academic year approved under the initial application;
    (d) Request a written leave of absence at least 30 days prior to 
withdrawal, unless in an emergency situation, from the Secretary for 
any interruption in his or her program of academic studies; and
    (e) Sign an agreement, at the time of the award, with the 
Department to meet the provisions of the payback requirement.


(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7833)


Sec. 263.31  What information must be submitted after a fellowship is 
awarded?

    To verify further the accuracy of the information provided in the 
application, the applicant shall provide all information and documents 
as requested by the Secretary, including information on other financial 
aid sources for educational purposes. The applicant's failure to 
provide the requested information and documents invalidates the 
application and the Secretary will not consider it for funding.


(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7833)


Sec. 263.32  What are the requirements for a leave of absence?

    (a) The Secretary may approve a leave of absence, for a period not 
longer than one academic year, provided a Fellow has successfully 
completed at least one academic year.
    (b) A written request for a leave of absence shall be submitted to 
the [[Page 33303]] Secretary not less than 30 days prior to withdrawal 
or completion of a grading period, unless an emergency situation has 
occurred and the Secretary waives the prior notification requirement.
    (c) The Secretary permits a leave of absence only if the 
institution certifies that the Fellow is eligible to resume his or her 
course of study at the end of the leave absence.
    (d) The Secretary shall withdraw any remaining funds of the 
Fellow's award when a leave of absence has occurred prior to the end of 
an academic term.


(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7833)


Sec. 263.33  What is required for continued funding under a fellowship?

    (a) The Secretary reviews the status of each Fellow at the end of 
each year and continues support only if the Fellow--
    (1) Has complied with requirements under this part;
    (2) Has remained a full-time student in good standing in the field 
in which the fellowship was awarded; and
    (3) Has submitted a noncompeting continuation application 
requesting additional support.
    (b) A fellowship terminates when the Fellow receives the degree 
being sought or after the Fellow has received the fellowship for the 
maximum number of years allowed as defined in Sec. 263.6 of this part, 
whichever comes first.


(Authority: 20 U.S.C. 7833)


Sec. 263.34  When is a fellowship discontinued?

    (a) The Secretary may discontinue the fellowship, if the Fellow--
    (1) Fails to comply with the provisions under this part, including 
failure to obtain an approved leave of absence under Sec. 263.32, or 
with the terms and conditions of the fellowship award; or
    (2) Fails to report any change in his or her academic status.
    (b) The Secretary will discontinue a fellowship only after 
providing reasonable notice and an opportunity for the Fellow to rebut, 
in writing or in an informal meeting with the responsible official in 
the Department of Education, the basis for the decision.


(Authority: 20 U.S.C. 7833)


Sec. 263.35  What are the payback requirements?
    (a) Individuals receiving assistance under the Indian Fellowship 
Program or the Professional Development Program are required to--
    (1) Perform work related to the training received and that benefits 
Indian people; or
    (2) Repay all or a prorated part of the assistance received.
    (b) The period of time required for a work-related payback is 
equivalent to the total period of time for which training was actually 
received under the Indian Fellowship Program or Professional 
Development Program.
    (c) The cash payback required shall be equivalent to the total 
amount of funds received and expended for training received under 
either of these programs and may be prorated based on any approved 
work-related service the participant performs.

(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7832 and 7833)


Sec. 263.36  When does payback begin?

    (a) For all fellows who complete their training under the Indian 
Fellowship Program or Professional Development Program, except for 
medical degree and doctoral degree candidates, payback shall begin 
within six months from the date of completion of the training.
    (1) For fellows in a doctoral degree program requiring a 
dissertation, payback shall begin not later than two years after the 
program's academic course work has been completed or the institution 
determines the student is no longer eligible to participate in the 
training program, whichever occurs first.
    (i) After academic course work has been completed, fellows in 
doctoral degree programs shall submit an annual written report to the 
Secretary on the status of the dissertation.
    (ii) Fellows will provide written notification to the Secretary, 
within 30 days, of completion of the dissertation and the participant's 
plans for completing a work-related or cash payback.
    (2) For fellows in a doctoral degree program with clinical or 
internship requirements, payback shall begin within 6 months after the 
clinical or internship requirements have been met or the institution 
determines the student is no longer eligible to participate in the 
training program, whichever occurs first.
    (i) After academic course work has been completed, fellows in a 
doctoral degree program with clinical or internship requirements shall 
submit an annual written report to the Secretary on the status of 
completion of the clinical or internship requirements.
    (ii) Fellows will provide written notification to the Secretary, 
within 30 days, of completion of the clinical or internship 
requirements and the participant's plans for completing a work-related 
or cash payback.
    (3) For fellows in a medical degree program, payback shall begin 
six months from the date that all residency requirements of the program 
have been met or the institution determines the student is no longer 
eligible to participate in the training program, whichever occurs 
first.
    (i) After academic course work has been completed, fellows in a 
medical degree program shall submit an annual written report to the 
Secretary on the status of completion of the residency requirements of 
the program.
    (ii) Fellows will provide written notification to the Secretary, 
within 30 days, of completion of the residency requirements and the 
participant's plans for completing a work-related or cash payback.
    (b) For fellows who do not complete their training under the Indian 
Fellowship Program or Professional Development Program, payback shall 
begin within six months from the date the Fellow leaves the Indian 
Fellowship or Professional Development Program, unless he or she 
continues as a full-time student without interruption, in a program 
leading to a degree in an accredited institution of higher education.
    (1) If the Fellow leaves the Indian Fellowship Program or 
Professional Development Program, but plans to continue his or her 
education as a full-time student, the Secretary may defer the payback 
requirement until the participant has completed his or her educational 
program. Written requests for deferment shall be submitted to the 
Secretary within 30 days of leaving the Indian Fellowship Program or 
the Professional Development Program and shall provide the following 
information--
    (i) The name of the accredited institution the student will be 
attending;
    (ii) A copy of the letter of admission from the institution;
    (iii) The degree being sought; and
    (iv) The projected date of completion.
    (2) After approval by the Secretary for deferment of the payback 
provision on the basis of continuing as a full-time student, former 
fellows are required to submit to the Secretary a status report from an 
academic advisor or other authorized representative of the institution 
of higher education, showing verification of enrollment and status, 
after every grading period.

(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7832 and 7833) [[Page 33304]] 


Sec. 263.37  What are the payback reporting requirements?

    (a) Written notice. Participants shall submit to the Secretary, 
within 30 days of completion of their training program, a written 
notice of intent to complete a work-related or cash payback, or to 
continue in a degree program as a full-time student.
    (b) Work-related payback. If the participant proposes a work-
related payback, the written notice of intent shall include information 
explaining how the work-related service is related to the training 
received and benefits Indian people.
    (1) For work-related service, the Secretary shall review each 
participant's payback plan to determine if the work-related service is 
related to the training received and benefits Indian people. The 
Secretary approves the payback plan if a determination is made that the 
work-related service to be performed is related to the training 
received and benefits Indian people, meets all applicable statutory and 
regulatory requirements, and is otherwise appropriate.
    (2) The payback plan for work-related service shall identify where, 
when, the type of service, and for whom the work will be performed.
    (3) A participant shall notify the Secretary in writing of any 
change in the work-related service being performed within 30 days of 
such change.
    (4) For work-related payback, individuals shall submit a status 
report every six months beginning from the date the work-related 
service is to begin. The reports shall include a certification from the 
participant's employer that the service or services have been performed 
without interruption.
    (4) Upon written request, and if appropriate, the Secretary may 
extend the period for completing a work-related payback by a total of 
18 months.
    (5) For participants that initiate, but cannot complete, a work-
related payback, the payback reverts to a cash payback.
    (c) Cash payback. If a cash payback is to be made, the Department 
will contact the participant to establish an appropriate schedule for 
payments.

(Approved by the Office of Management and Budget under control 
number 1810-0020)

(Authority: 20 U.S.C. 7832 and 7833)

Subpart D--How are Fellowship Payments Made?


Sec. 263.40  How are payments made?

    (a) Fellowship payments are made directly to the institution of 
higher education where a Fellow is enrolled, with stipends provided to 
the Fellow in installments by the institution. No fewer than two 
installments per academic year may be made.
    (b) If a Fellow transfers to another institution, the fellowship 
may also be transferred provided the Fellow maintains basic eligibility 
for the award.
    (c) A Fellow who officially or unofficially withdraws or is 
expelled from an institution before completion of a term shall refund a 
prorated portion of the stipends received, as determined by the 
Secretary. The Secretary will require the institution to return any 
unexpended funds.

(Authority: 20 U.S.C. 7833)

[FR Doc. 95-15655 Filed 6-26-95; 8:45 am]
BILLING CODE 4000-01-P