[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Rules and Regulations]
[Pages 31350-31355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15517]




[[Page 31349]]


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Part VI





Department of Education





_______________________________________________________________________



34 CFR Parts 535 and 562



Bilingual Education: Graduate Fellowship Program; Final Rule

  Federal Register / Vol. 61, No. 119 / Wednesday, June 19, 1996 / 
Rules and Regulations  

[[Page 31350]]



DEPARTMENT OF EDUCATION

34 CFR Parts 535 and 562

RIN 1885-AA21


Bilingual Education: Graduate Fellowship Program

AGENCY: Department of Education.

ACTION: Final Regulations.

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SUMMARY: The Secretary adopts these regulations and adds a new Part 535 
for the Bilingual Education: Graduate Fellowship Program, which is 
authorized by section 7145 of the Elementary and Secondary Education 
Act of 1965 (the Act), as amended by the Improving America's Schools 
Act of 1994. The Bilingual Education: Graduate Fellowship Program 
replaces the existing Bilingual Education Fellowship Program (34 CFR 
Part 562) and expands the program to include post-doctoral fellowships.

EFFECTIVE DATE: These regulations take effect July 19, 1996.

FOR FURTHER INFORMATION CONTACT: Joyce Brown, U.S. Department of 
Education, 600 Independence Avenue, SW., Room 5086, Switzer Building, 
Washington, DC 20202-6510. Telephone: (202) 205-9727. 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: These regulations implement statutory 
changes made when the program was reauthorized by the Improving 
America's Schools Act of 1994 (Pub. L. 103-382, enacted October 20, 
1994). These regulations have been reviewed and revised in accordance 
with the Department's ``Principles for Regulating,'' which were 
developed to ensure that the Department regulates in the most flexible, 
most equitable, and least burdensome way possible. These regulations 
are necessary to implement the law and reflect the greatest flexibility 
and least burden possible.
    On November 9, 1995, the Secretary published a notice of proposed 
rulemaking (NPRM) for this program in the Federal Register (60 FR 
56920). The preamble to the NPRM (60 FR 56920-56922) included a summary 
and discussion of the 1994 Amendments and other major issues that were 
addressed in the proposed regulations.
    There are a few substantive differences between the NPRM and these 
final regulations. The Secretary has expanded the types of travel 
expenses Fellows are authorized to make and has included in the 
selection criteria for evaluating applications for participation in the 
program for post-doctoral level fellowships consideration of whether 
research plans and designs are reasonable and sound. In addition, the 
Secretary inadvertently omitted 34 CFR Part 79 from the list of 
regulations that apply to this program and has included it in the final 
regulations. Although 34 CFR Part 79 exempts programs that make direct 
payments to individuals, this program is not exempted because the 
Department gives funds to institutions of higher education, which 
distribute the funds to individual Fellows. Any other differences 
between the NPRM and these final regulations are due to editorial and 
technical revisions.

Analysis of Comments and Changes

    In response to the Secretary's invitation in the NPRM, one party 
submitted comments on the proposed regulations. An analysis of the 
comments and of the changes in the regulations since publication of the 
NPRM follows.
    Major issues are grouped according to subject, with appropriate 
sections of the regulations referenced in parentheses. Technical and 
other minor changes--and suggested changes the Secretary is not legally 
authorized to make under the applicable statutory authority--are not 
addressed.

Purpose of the Program (Sec. 535.1)

    Comments: One commenter suggested that the Secretary exclude 
master's degree candidates from the program.
    Discussion: One purpose of the professional development programs 
under title VII is to assist in preparing educators to improve 
educational services for limited English proficient children. To meet 
that purpose, section 7145(a)(1) of the Act specifically authorizes the 
Secretary to award fellowships for master, doctoral, and post-doctoral 
study. The Secretary believes it is appropriate to assist individuals 
pursuing master's degrees if the individuals are pursuing studies that 
further the purpose of the program. If, in the future, the Secretary 
does not believe it is useful to award fellowships to master's degree 
candidates, the Secretary, through additional regulations, could limit 
fellowships to doctoral and post-doctoral candidates.
    Changes: None.

Financial Assistance (Sec. 535.3)

    Comments: One commenter suggested that the Secretary authorize 
travel expenses that are generally related to the academic program. The 
commenter believed that the proposed requirement in the regulations 
that travel be related to practice teaching or clinical experience was 
too limited. The commenter noted that, in doctoral programs, there may 
be many other reasons for travel, such as helping training or advancing 
progress in the academic program.
    The commenter also encouraged the Secretary to increase the monthly 
stipend from $500 to $1,000 on the ground that the $500 limitation 
combined with the provision restricting a Fellow to 20 hours of work 
per week would create a financial hardship that could adversely affect 
the Fellow's progress in the academic program.
    Finally, the commenter recommended that post-doctoral fellowship 
recipients who may be appointed for less than a calendar year (e.g., 
school year) receive a full fellowship.
    Discussion: The Secretary agrees that the limitation on the types 
of travel in the NPRM was too restrictive and has broadened the 
provision in these final regulations.
    However, the Secretary believes the $500 per month stipend for 
masters and doctoral degree candidates combined with allowances for 
travel and books and whatever the Fellow may earn as a part-time 
employee is reasonable. The Secretary has balanced the Fellows' need 
for support and the Department's desire to assist as many Fellows as 
possible.
    For post-doctoral Fellows, the full amount of the fellowship is 
determined on a case-by-case basis depending on the application 
submitted and the period of work proposed. The $40,000 amount is an 
upper limit, not the amount each post-doctoral Fellow receives.
    Changes: Section 535.3(a)(3) has been changed to allow travel 
expenses for ``travel directly related to program of study.'' No other 
changes have been made.

Selection Criteria for Post-Doctoral Level Fellowships (Sec. 535.23)

    Comments: A commenter suggested that the Secretary increase the 
maximum number of points that can be awarded for the ``Quality of key 
faculty members'' selection criterion (Sec. 535.23(c)) from 20 to 25 
points and decrease the maximum number of points that can be awarded 
for the ``Proposed areas of research'' selection criterion 
(Sec. 535.23(b)) from 35 to 30 points.
    In Sec. 535.23(b), ``Proposed areas of research,'' the commenter 
suggested combining the factors in (b)(1) with

[[Page 31351]]

(b)(3) and (b)(2) with (b)(4). The commenter stated that these factors 
were similar enough to be combined and should be expanded to include 
more types of research.
    The commenter suggested that Sec. 535.23(b)(5) should be re-written 
to include whether the research plan and design are reasonable and 
sound. The commenter stated that the additional language is necessary 
to ensure that secondary analysis of data collected by another entity 
is considered valid and awarded points.
    In addition, the commenter suggested that in Sec. 535.23(b)(6) the 
Secretary should consider whether the application specifies a project 
period for ``substantial progress'' in the study rather than limiting 
the criterion to completion of the study. The commenter stated that 
completion of a project is difficult for post-doctoral students who are 
in a post-doctoral position for one year and that considering only 
whether the study is to be completed within the specified project 
period would be too narrow.
    Discussion: The Secretary believes that the point distribution 
among the criteria is appropriate and that the distinct factors give 
applicants more direction in addressing each criterion.
    The Secretary also believes the criteria do not need to be expanded 
to include more types of research. The factors focus proposed research 
on education and the primary purposes of the program.
    In Sec. 535.23(b)(5) the Secretary agrees that considering only 
data collection and the data analysis plan could be interpreted to 
exclude secondary analysis of already-collected data. The Secretary did 
not intend this interpretation and has clarified the regulatory 
language.
    The Secretary believes that Sec. 535.23(b)(6) is an appropriate 
factor that is designed to evaluate the extent to which the applicant 
has an intended and realistic completion schedule. The Secretary 
understands that a Fellow's ultimate study may not be completed within 
the period of the fellowship, but applicants may propose at least a 
portion of a study that can be completed within the period of the 
fellowship.
    Changes: The Secretary has revised Sec. 535.23(b)(5) to include 
consideration of whether the research plans and designs are reasonable 
and sound.

Fellowship Period (Sec. 535.42)

    Comments: A commenter suggested that the Secretary extend the 
maximum number of years for which a doctoral fellowship is awarded to 
five to include support for the last two years when a Fellow may be 
completing a dissertation. The commenter stated that most doctoral 
programs allow for the completion of the course work within three 
years, but that the entire program may take up to five years to 
complete.
    Discussion: Because the Department has limited resources, the 
Secretary must balance the amount and length of support that the 
Department provides to one individual against providing support to more 
individuals. The Secretary believes that supporting a doctoral Fellow 
for three years is sufficient. Further, Sec. 535.42(b) provides that 
the Secretary may extend a fellowship beyond the maximum period for 
master's or doctoral Fellows under certain circumstances.
    Changes: None.

Service Requirement, Repayment Schedule, and Accounting for the 
Obligation (Secs. 535.50, 535.52, and 535.57)

    Comments: One commenter suggested that the Secretary set the 
service requirement start date, repayment schedule, and the obligation 
account activation period at 12 months rather than the proposed 6 
months. The commenter stated that more time is necessary because the 
academic employment cycle begins in the fall and extends for a year. 
The commenter stated that beginning the service requirement and 
repayment schedule after 12 months would be more realistic.
    Discussion: The Secretary is aware that some Fellows seeking 
academic positions may not be able to secure employment within six 
months. However, the Secretary believes that it would be unwise to 
extend the period. The Department's experience has shown that if the 
repayment procedures are not activated until 12 months, the Department 
has more difficulty determining the status of Fellows. The regulations 
in Sec. 535.54 do allow the Secretary to defer payment for a number of 
reasons, including if the fellowship recipient demonstrates to the 
Secretary's satisfaction that the fellowship recipient is 
conscientiously seeking but is unable to secure employment.
    Changes: None.

Paperwork Reduction Act of 1995

    Under the Paperwork Reduction Act of 1995, no persons are required 
to respond to a collection of information unless it displays a valid 
OMB control number. The valid OMB control number assigned to the 
collections of information in these final regulations is displayed at 
the end of the affected sections of the 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 regulations 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

34 CFR Part 535

    Bilingual education, Education, Educational research, Reporting and 
recordkeeping requirements, Scholarships and fellowships, Teachers.

34 CFR Part 562

    Bilingual education, Education, Educational research, Reporting and 
recordkeeping requirements, Scholarships and fellowships, Teachers.

(Catalog of Federal Domestic Assistance Number 84.195C Bilingual 
Education: Graduate Fellowship Program.)

    Dated: June 13, 1996.
Delia Pompa,
Director, Office of Bilingual Education and Minority Languages Affairs.

    The Secretary amends Title 34 of the Code of Federal Regulations as 
follows:

PART 562--[REMOVED]

    1. 34 CFR Part 562 is removed.
    2. A new Part 535 is added to read as follows:

[[Page 31352]]

PART 535--BILINGUAL EDUCATION: GRADUATE FELLOWSHIP PROGRAM

Subpart A--General

Sec.
535.1  What is the Bilingual Education: Graduate Fellowship Program?
535.2  Who is eligible to participate in this program?
535.3  What financial assistance is available for fellowship 
recipients?
535.4  What regulations apply?
535.5  What definitions apply?

Subpart B--How Does an IHE Apply To Participate in the Program?

535.10  How does an IHE apply to participate in the program?
535.11  What assurance must an application contain?
535.12  In what circumstances may an IHE waive the training 
practicum requirement?

Subpart C--How Does the Secretary Approve an IHE's Participation?

535.20  How does the Secretary evaluate an application to 
participate in this program for master's and doctoral level 
fellowships?
535.21  What selection criteria does the Secretary use?
535.22  How does the Secretary evaluate an application to 
participate in this program for post-doctoral study fellowships?
535.23  What selection criteria does the Secretary use?

Subpart D--How Does an Individual Apply for a Fellowship?

535.30  How does an individual apply for a fellowship?

Subpart E--How Are Fellows Selected?

535.40  How does the Secretary select Fellows?
535.41  Who may an IHE nominate for fellowships?
535.42  What is the period of a fellowship?

Subpart F--What Conditions Must Be Met by Fellows?

535.50  What is the service requirement for a fellowship?
535.51  What are the requirements for repayment of the fellowship?
535.52  What is the repayment schedule?
535.53  What is the rule regarding interest?
535.54  Under what circumstances is repayment deferred?
535.55  What is the length of the deferment of repayment?
535.56  Under what circumstances is repayment waived?
535.57  How shall the fellowship recipient account for the 
obligation?

    Authority: 20 U.S.C. 7475, unless otherwise noted.

Subpart A--General


Sec. 535.1  What is the Bilingual Education: Graduate Fellowship 
Program?

    The Bilingual Education: Graduate Fellowship Program provides 
financial assistance, through institutions of higher education (IHEs), 
to individuals who are pursuing master's, doctoral, or post-doctoral 
study related to instruction of limited English proficient (LEP) 
children and youth in areas such as teacher training, program 
administration, research and evaluation, and curriculum development and 
for the support of dissertation research related to this study.

(Authority: 20 U.S.C. 7475(a)(1))


Sec. 535.2  Who is eligible to participate in this program?

    (a) An IHE is eligible to participate in this program.
    (b) An individual who meets the eligibility requirements under 
Sec. 535.41 may apply for a fellowship through an IHE participating in 
this program.

(Authority: 20 U.S.C. 7475)


Sec. 535.3  What financial assistance is available for fellowship 
recipients?

    (a) The Secretary may authorize the following financial assistance 
on an annual basis to master's and doctoral program fellowship 
recipients:
    (1) Tuition and fees--the usual costs associated with the course of 
study.
    (2) Books--up to $300.
    (3) Travel--up to $250 for travel directly related to the program 
of study.
    (4) A stipend of up to $500 per month, including allowances for 
subsistence and other expenses, for a participant and his or her 
dependents, if the participant is--
    (i) A full-time student in a program of study that was in the 
approved application; and
    (ii) Gainfully employed no more than 20 hours a week or the annual 
equivalent of 1040 hours.
    (b) The Secretary may authorize the following financial assistance 
on an annual basis to post-doctoral fellowship recipients:
    (1) A stipend of up to $40,000.
    (2) Publications, research and scholarly materials, research-
related travel, and fees--up to $5,000.
    (c) In authorizing assistance to fellowship recipients under 
paragraphs (a) and (b) of this section, the Secretary considers the 
amount of other financial compensation that the fellowship recipients 
receive during the training period.

(Authority: 20 U.S.C. 7478)


Sec. 535.4  What regulations apply?

    The following regulations apply to this program:
    (a) 34 CFR 75.51 and 75.60 through 62.
    (b) 34 CFR Part 77.
    (c) 34 CFR Part 79.
    (d) 34 CFR Part 85.
    (e) The regulations in this Part 535.

(Authority: 20 U.S.C. 7475)


Sec. 535.5  What definitions apply?

    (a) Definitions in the Act. (1) The following terms used in this 
part are defined in section 7501 of the Act:

Bilingual education program
Children and youth
Limited English proficiency
Native Hawaiian or Native American Pacific Islander Native language 
educational organization
Office
Other programs for persons of limited-English proficiency

    (2) The following terms used in this part are defined in section 
7104 of the Act:

Indian tribe
Tribally sanctioned educational authority

    (3) The following terms used in this part are defined in section 
14101 of the Act:

Institution of higher education
Local educational agency (LEA)

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

Applicant
Application
Award
Department
EDGAR
Fiscal year
Project
Recipient
Secretary
State
State educational agency (SEA)

    (c) Other definition. The following definition also applies to this 
part:
    Act means the Elementary and Secondary Education Act of 1965, as 
amended.

(Authority: 20 U.S.C. 7475-7480)

Subpart B--How Does an IHE Apply To Participate in the Program?


Sec. 535.10  How does an IHE apply to participate in the program?

    To apply for participation under this part, an IHE shall submit an 
application to the Secretary that--
    (a) Responds to the appropriate selection criteria in Secs. 535.21 
and 535.23; and
    (b) Requests a specific number of fellowships to be awarded in each 
proposed language or other curriculum group for the fellowship period 
specified in Sec. 535.42.

(Authority: 20 U.S.C. 7475)

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Sec. 535.11  What assurance must an application contain?

    An application that proposes to train master's or doctoral level 
students with funds received under this part must provide an assurance 
that the program will include a training practicum in a local school 
program serving LEP students.
(Authority: 20 U.S.C. 7476(a)(3)(A))


Sec. 535.12  In what circumstances may an IHE waive the training 
practicum requirement?

    An IHE participating under this program may waive the requirement 
in Sec. 535.11 for a training practicum for a master's or doctoral 
degree candidate who has had at least one academic year of experience 
in a local school program serving LEP students.

(Authority: 20 U.S.C. 7476(a)(3)(B))

Subpart C--How Does the Secretary Approve an IHE's Participation?


Sec. 535.20  How does the Secretary evaluate an application to 
participate in this program for master's and doctoral level 
fellowships?

    (a) The Secretary evaluates an application to participate in this 
program for master's and doctoral level fellowships on the basis of the 
criteria in Sec. 535.21.
    (b) The Secretary awards up to 100 points for these criteria.
    (c) The maximum possible score for each criterion is indicated in 
parentheses.
    (d) After all the applications have been evaluated under 
Sec. 535.21, the Secretary rank-orders the applications.
    (e) The Secretary then determines the maximum number of fellowships 
by language or other curriculum group that may be awarded at each IHE--
    (1) Based on the IHE's capacity to provide graduate training in the 
areas proposed for fellowship recipients; and
    (2) To the extent feasible, in proportion to the need for 
individuals with master's and doctoral degrees in the areas of training 
proposed by the IHE.

(Authority: 20 U.S.C. 7475)


Sec. 535.21  What selection criteria does the Secretary use?

    The Secretary uses the following selection criteria to evaluate an 
application for participation in this program for master's and doctoral 
level fellowships:
    (a) Institutional commitment. (25 points) The Secretary reviews 
each application to determine the quality of the institution's graduate 
program of study, including consideration of--
    (1) The extent to which the program has been adopted as a permanent 
graduate program of study;
    (2) The organizational placement of the program of study;
    (3) The staff and resources that the IHE has committed to the 
program;
    (4) The IHE's demonstrated competence and experience in programs 
and activities such as those authorized under the Act;
    (5) The IHE's demonstrated experience in assisting fellowship 
recipients to find employment in the field of bilingual education; and
    (6) If the IHE has carried out a previous project with funds under 
title VII of the Act, the applicant's record of accomplishments under 
that previous project.
    (b) Quality of the graduate academic program. (20 points) The 
Secretary reviews each application to determine the quality of the 
graduate program of study for which approval is sought, including--
    (1) The course offerings and academic requirements for the graduate 
program;
    (2) The availability of related course offerings through other 
schools or departments within the IHE;
    (3) The IHE's focus and capacity for research;
    (4) The quality of the standards used to determine satisfactory 
progress in, and completion of, the program;
    (5) The extent to which the program of study prepares Fellows to 
improve the academic achievement of LEP children and youth; and
    (6) In the case of a program designed to prepare trainers of 
educational personnel for programs of bilingual instruction, the extent 
to which the program incorporates the use of English and another 
language to develop the Fellows' competencies as trainers of bilingual 
educational personnel.
    (c) Quality of key faculty members. (20 points) The Secretary 
reviews each application to determine the qualifications of the key 
faculty to be used in the program of study, including the extent to 
which their background, education, research interests, and relevant 
experience qualify them to plan and implement a successful program of 
high academic quality related to instruction of LEP children and youth.
    (d) Field-based experience. (15 points) The Secretary reviews each 
application to determine the extent to which the program of study 
provides field-based experience through arrangements with LEAs, SEAs, 
or persons or organizations with expertise in programs for LEP children 
and youth.
    (e) Evidence of local or national need. (10 points) The Secretary 
reviews each application to determine the need for more individuals 
trained, at the graduate level, in the area of study proposed by the 
applicant.
    (f) Recruitment plan. (10 points) The Secretary reviews each 
application to determine the quality of the applicant's plan for 
recruitment and nomination of students.

(Approved by the Office of Management and Budget under control 
number 1885-0001.)

(Authority: 20 U.S.C. 7475 and 7547)


Sec. 535.22  How does the Secretary evaluate an application to 
participate in this program for post-doctoral study fellowships?

    (a) The Secretary evaluates an application to participate in this 
program for post-doctoral study fellowships on the basis of the 
criteria in Sec. 535.23.
    (b) The Secretary awards up to 100 points for these criteria.
    (c) The maximum possible score for each criterion is indicated in 
parentheses.
    (d) After all the applications have been evaluated according to the 
selection criteria, the Secretary rank-orders the applications.
    (e) The Secretary designates the maximum number of fellowships that 
may be awarded at each IHE based on the factors in Sec. 535.23 (a), 
(c), and (d).

(Authority: 20 U.S.C. 7475)


Sec. 535.23  What selection criteria does the Secretary use?

    The Secretary uses the following selection criteria to evaluate an 
application for participation in this program for post-doctoral level 
fellowships:
    (a) Institutional commitment. (35 points) The Secretary reviews 
each application to determine the overall strength of the applicant's 
commitment to meeting the educational needs of LEP children and youth, 
including consideration of--
    (1) The IHE's demonstrated competence and experience in programs 
and research activities such as those authorized under subpart 2 of 
part A of title VII of the Act;
    (2) The extent to which the IHE's research environment is 
supportive of the success of post-doctoral Fellows in their research;
    (3) The IHE's demonstrated experience in assisting fellowship 
recipients to find employment in the field of bilingual education;
    (4) The IHE's procedures for the dissemination and use of research 
findings; and
    (5) If the IHE has carried out a previous project with funds under 
title VII of the Act, the applicant's record of

[[Page 31354]]

accomplishments under that previous project.
    (b) Proposed areas of research. (35 points) The Secretary reviews 
each application to determine to what extent--
    (1) There is a clear description of the areas of research proposed 
to be undertaken by the post-doctoral Fellows;
    (2) The research to be undertaken by the post-doctoral Fellows is 
likely to produce new and useful information;
    (3) The areas of proposed research relate to the educational needs 
of LEP children and youth and of the educational personnel that serve 
that population;
    (4) The outcomes of the research and study are likely to benefit 
the defined target population by improving the academic achievement of 
LEP children and youth;
    (5) The data collection and data analysis plans or research plans 
and designs are reasonable and sound; and
    (6) A project period for completion of the study, consistent with 
period of availability of post-doctoral fellowships in Sec. 535.42, is 
specified.
    (c) Quality of key faculty members. (20 points) The Secretary 
reviews each application to determine the qualifications of the key 
faculty likely to assist, guide, or mentor post-doctoral Fellows, 
including the extent to which the faculty's background, education, 
research interests, and relevant experiences qualify them to support 
high-quality research and study performed by post-doctoral Fellows.
    (d) Adequacy of resources. (10 points) The Secretary reviews each 
application to determine to what extent--
    (1) The facilities planned for use are adequate;
    (2) The equipment and supplies planned for use are adequate; and
    (3) The commitment of the applicant to provide administrative and 
other necessary support is evident.

(Approved by the Office of Management and Budget under control 
number 1885-0001.)

(Authority: 20 U.S.C. 7475)

Subpart D--How Does an Individual Apply for a Fellowship?


Sec. 535.30  How does an individual apply for a fellowship?

    (a) An individual shall submit an application for a fellowship to 
an IHE that has been approved for participation under Sec. 535.20 or 
Sec. 535.22.
    (b) Each participating IHE may establish procedures for receipt of 
applications from individuals.

(Authority: 20 U.S.C. 7475)

Subpart E--How Are Fellows Selected?


Sec. 535.40  How does the Secretary select Fellows?

    (a)(1) A participating IHE shall submit names of nominees to the 
Secretary.
    (2) If the IHE has more than one nominee, the IHE shall rank the 
nominees in order of preference to receive a fellowship.
    (b) The Secretary selects new Fellows according to the rank order 
prepared by the IHE, subject to the maximum number of fellowships 
designated for that IHE under Secs. 535.20 and 535.22.

(Approved by the Office of Management and Budget under control 
number 1885-0001.)

(Authority: 20 U.S.C. 7475)


Sec. 535.41  Who may an IHE nominate for fellowships?

    (a) In nominating individuals to receive master's and doctoral 
level fellowships, an IHE shall nominate only individuals who--
    (1) Have been accepted for enrollment as full-time students in an 
approved course of study offered by the IHE;
    (2) Have an excellent academic record;
    (3) Are proficient in English and, if applicable, another language;
    (4) Have experience in providing services to, teaching in, or 
administering programs for LEP children and youth;
    (5) Are planning to enter or return to a career in service to LEP 
children and youth after completion of their studies;
    (6) Are eligible to receive assistance under 34 CFR 75.60 and 
75.61; and
    (7)(i) Are citizens, nationals, or permanent residents of the 
United States;
    (ii) Are in the United States for other than temporary purposes and 
can provide evidence from the Immigration and Naturalization Service of 
their intent to become permanent residents; or
    (iii) Are permanent residents of the Commonwealth of Puerto Rico, 
Guam, American Samoa, the Virgin Islands, the Commonwealth of the 
Northern Mariana Islands, the Republic of the Marshall Islands, the 
Federated States of Micronesia, or the Republic of Palau.
    (b) In nominating individuals to receive post-doctoral fellowships, 
an IHE shall nominate only individuals who--
    (1) Have doctoral degrees in relevant disciplines that qualify 
those individuals to conduct independent research on educational 
programs and policies for LEP children and youth; and
    (2) Meet the criteria in paragraphs (a)(3) through (7) of this 
section.

(Authority: 20 U.S.C. 7475)


Sec. 535.42  What is the period of a fellowship?

    (a) Except as provided in paragraph (b) of this section, the 
Secretary may award a fellowship--
    (1) For a maximum of two one-year periods to an individual who 
maintains satisfactory progress in a master's or post-doctoral program 
of study; and
    (2) For a maximum of three one-year periods to an individual who 
maintains satisfactory progress in a doctoral program of study.
    (b) Subject to the availability of funds, and if an IHE provides 
adequate justification, the Secretary may extend a fellowship beyond 
the maximum period to a master's or doctoral Fellow who, for 
circumstances beyond the Fellow's control, is unable to complete the 
program of study in that period.
    (c) A fellowship recipient who seeks assistance beyond the initial 
one-year period must be renominated by the participating IHE.
    (d) Prior to approving nominations of new Fellows, the Secretary 
may give preference to fellowship recipients in their second or third 
year who maintain satisfactory progress in the program of study.

(Authority: 20 U.S.C. 7475)

Subpart F--What Conditions Must Be Met by Fellows?


Sec. 535.50  What is the service requirement for a fellowship?

    (a) Upon selection for a fellowship, a Fellow shall sign an 
agreement, provided by the Secretary, to work for a period equivalent 
to the period of time that the Fellow receives assistance under the 
fellowship in an activity--
    (1) (i) Related to the program; or
    (ii) Authorized under part A of title VII of the Act; and
    (2) Approved by the Secretary.
    (b) A fellowship recipient shall begin working in an activity 
specified in paragraph (a) of this section within six months of the 
date from which--
    (1) The master's or doctoral recipient ceases to be enrolled at an 
IHE as a full-time student; or
    (2) The post-doctoral recipient completes the project period in the 
approved program of study.

(Approved by the Office of Management and Budget under control 
number 1885-0001.)

(Authority: 20 U.S.C. 7475(b))


Sec. 535.51  What are the requirements for repayment of the fellowship?

    (a) A fellowship recipient who does not work in an activity 
described in Sec. 535.50 shall repay the full amount of the fellowship.
    (b) The Secretary prorates the amount a fellowship recipient is 
required to

[[Page 31355]]

repay based on the length of time the fellowship recipient worked in an 
authorized activity compared with the length of time the fellowship 
recipient received assistance.

(Authority: 20 U.S.C. 7475(b))


Sec. 535.52  What is the repayment schedule?

    (a) A fellowship recipient required to repay all or part of the 
amount of the fellowship shall begin repayments--
    (1) Within six months of the date the fellowship recipient meets 
the criteria in Sec. 535.50(b)(1) or (2); or
    (2) On a date and in a manner established by the Secretary, if the 
fellowship recipient ceases to work in an authorized activity.
    (b) A fellowship recipient must repay the required amount, 
including interest, in a lump sum or installment payments approved by 
the Secretary.
    (c) The repayment period may be extended if the Secretary grants a 
deferment under Sec. 535.54.

(Authority: 20 U.S.C. 7475(b))


Sec. 535.53  What is the rule regarding interest?

    (a) In accordance with 31 U.S.C. 3717, the Secretary charges a 
fellowship recipient interest on the unpaid balance that the fellowship 
recipient owes.
    (b) No interest is charged for the period of time--
    (1) That precedes the date on which the fellowship recipient is 
required to begin repayment; or
    (2) During which repayment has been deferred under Sec. 535.54.

(Authority: 20 U.S.C. 7475(b))


Sec. 535.54  Under what circumstances is repayment deferred?

    The Secretary may defer repayment if the fellowship recipient--
    (a) Suffers from a serious physical or mental disability that 
prevents or substantially impairs the fellowship recipient's 
employability in an activity described in Sec. 535.50;
    (b) Demonstrates to the Secretary's satisfaction that the 
fellowship recipient is conscientiously seeking but is unable to secure 
employment in an activity described in Sec. 535.50;
    (c) In the case of a master's or doctoral fellowship recipient, re-
enrolls as a full-time student at an IHE;
    (d) Is a member of the Armed Forces of the United States on active 
duty;
    (e) Is in service as a volunteer under the Peace Corps Act; or
    (f) Demonstrates to the Secretary's satisfaction that the existence 
of extraordinary circumstances prevents the fellowship recipient from 
making a scheduled payment.

(Authority: 20 U.S.C. 7475(b))


Sec. 535.55  What is the length of the deferment of repayment?

    (a) Unless the Secretary determines otherwise, a fellowship 
recipient shall apply to renew a deferment on a yearly basis.
    (b) Deferments for military or Peace Corps service may not exceed 
three years.

(Authority: 20 U.S.C. 7475(b))


Sec. 535.56  Under what circumstances is repayment waived?

    The Secretary may waive repayment if the fellowship recipient 
demonstrates the existence of extraordinary circumstances that justify 
a waiver.

(Authority: 20 U.S.C. 7475(b)(2))


Sec. 535.57  How shall the fellowship recipient account for the 
obligation?

    (a) Within six months of the date a fellowship recipient meets the 
criteria in Sec. 535.50(b)(1) or (2), the fellowship recipient shall 
submit to the Secretary one of the following items:
    (1) A description of the activity in which the fellowship recipient 
is employed.
    (2) Repayment required under Secs. 535.51 and 535.52.
    (3) A request to repay the obligation in installments.
    (4) A request for a deferment or waiver as described in 
Secs. 535.54 and 535.56 accompanied by a statement of justification.
    (b) A fellowship recipient who submits a description of employment 
under paragraph (a)(1) of this section shall notify the Secretary on a 
yearly basis of the period of time during the preceding year that the 
fellowship recipient was employed in the activity.
    (c) A fellowship recipient shall inform the Secretary of any change 
in employment status.
    (d) A fellowship recipient shall inform the Secretary of any change 
of address.
    (e)(1) A fellowship recipient's failure to timely satisfy the 
requirements in paragraphs (b) through (d) of this section results in 
the fellowship recipient being in non-compliance or default status 
subject to collection action.
    (2) Interest and costs of collection may be collected in accordance 
with 31 U.S.C. 3717 and 34 CFR Part 30.

(Approved by the Office of Management and Budget under control 
number 1885-0001.)

(Authority: 20 U.S.C. 7475(b))

[FR Doc. 96-15517 Filed 6-18-96; 8:45 am]
BILLING CODE 4000-01-P