[Federal Register Volume 61, Number 186 (Tuesday, September 24, 1996)]
[Rules and Regulations]
[Pages 50200-50205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24463]



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Part VI





Department of Education





_______________________________________________________________________



34 CFR Part 657



Higher Education Programs in Modern Foreign Language Training and Area 
Studies--Foreign Language and Area Studies Fellowships Program; Final 
Rule

  Federal Register / Vol. 61, No. 186 / Tuesday, September 24, 1996 / 
Rules and Regulations  

[[Page 50200]]



DEPARTMENT OF EDUCATION

34 CFR Part 657

RIN 1840-AC28


Higher Education Programs in Modern Foreign Language Training and 
Area Studies--Foreign Language and Area Studies Fellowships Program

AGENCY: Department of Education.

ACTION: Final regulations.

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

SUMMARY: The Secretary amends the regulations governing the Higher 
Education Programs in Modern Foreign Language Training and Area 
Studies--Foreign Language and Area Studies (FLAS) Fellowships Program. 
These final regulations are needed to improve the application review 
process and to update the regulations in light of developments in the 
field of foreign language, area, and international studies. In the 
spirit of reinventing government, the goal of the final regulations is 
to markedly reduce the burden associated with the application process. 
These final regulations are intended to (a) Reduce the burden on 
applicants and readers by clarifying and restructuring selection 
criteria to remove ambiguity and eliminate repetition of information 
presented in applications, (b) facilitate funding decisions by 
providing a larger point spread for greater differentiation of 
rankings, (c) simplify the application process for applicants, improve 
the cost-effectiveness of the program, and standardize program 
management by adopting the fellowship award allocation system currently 
used to administer other Federal fellowship programs, and (d) improve 
program quality, efficiency, and flexibility by adopting changes 
program management experience shows to be appropriate.

EFFECTIVE DATE: These regulations take effect on October 24, 1996.

FOR FURTHER INFORMATION CONTACT: Cheryl Gibbs, U.S. Department of 
Education, 600 Independence Avenue, S.W., Suite 600-B, Portals 
Building, Washington, D.C. 20202-5331. Telephone (202) 401-9785. 
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 Foreign Language and Area Studies 
Fellowships Program is one of several international education programs 
authorized under Part A of Title VI of the Higher Education Act of 
1965, as amended. The main provisions of the regulations govern the 
awarding of grants designed to provide fellowship assistance to 
students enrolled in advanced programs of modern foreign language and 
area or international studies.
    On March 28, 1996, the Secretary published a notice of proposed 
rulemaking (NPRM) for this program in the Federal Register (61 FR 
14006). The NPRM included a discussion of the proposed changes in the 
regulations for the Foreign Language and Area Studies Fellowships 
Program by modifying the selection criteria for applications, by 
eliminating references to undergraduate programs and fellowship 
recipients in keeping with statutory requirements, by adopting a new 
system of allocating fellowship awards, by easing restrictions on the 
use of fellowship awards abroad, and by clarifying that only academic 
year awards may be used for research abroad.
    As a result of the comments received, the Secretary has increased 
the number of points allocated to the ``Strength of library'' 
criterion, has replaced the term ``teaching assistants'' with the term 
``instructional assistants'' in the appropriate criteria to eliminate 
inconsistencies among applicant institutions regarding this position; 
has rephrased the ``Quality of the Center's language instructional 
program'' criterion to eliminate ambiguity regarding the information 
requested on student enrollments and the Center's offerings; and has 
eliminated an evaluation factor in Sec. 657.21(a).

Analysis of Comments and Changes

    In response to the Secretary's invitation in the NPRM, 87 parties 
submitted comments, 74 of which addressed the proposed regulations. An 
analysis of the comments and of the changes in the regulations since 
the publication of the NPRM follows.
    Substantive issues are discussed under the section of the 
regulations to which they pertain. Technical and other minor changes--
and suggested changes the Secretary is not legally authorized to make 
under the applicable statutory authority--are not addressed. Comments 
not related to the proposed regulations are not addressed.
    What criteria does the Secretary use in selecting institutions for 
an allocation of fellowships? (Sec. 657.21)

--Foreign language and area studies fellowships awardee selection 
procedures. (Sec. 657.21(a))

    Comments: One commenter suggested decreasing the number of total 
points available for this criterion because the factors used to select 
FLAS awardees do not necessarily allow readers to differentiate between 
academic programs of high quality. The commenter suggested that the 
Secretary eliminate the second factor in this criterion because it 
requests information that is not relevant to the process for selecting 
institutions for an allocation of fellowships.
    Discussion: The Secretary believes that the procedures used to 
select FLAS awardees are important elements of the grantee's plan of 
operation. The Secretary also believes that the first factor in this 
criterion covers this information and allows readers to assess the 
likelihood of the applicant's meeting the announced competitive 
priorities for the FLAS program as well as the potential impact of the 
grant. The Secretary agrees that the second element of the criterion, 
the extent to which the applicant provides information about current 
and prospective applicant-to-award ratios, is not critical to the 
readers and should be eliminated to emphasize the importance of the 
selection procedures. The Secretary does not wish to decrease the total 
number of points for this criterion, however.
    Changes: Section 657.21(a)(2) has been eliminated.

--Impact and evaluation. (Sec. 657.21(c))

    Comments: One commenter stated that the kinds of quantifiable data 
being requested to validate a Center's success may prompt institutions 
to submit inflated data. The commenter stated that an applicant's 
achievements also may be documented by other unspecified indicators and 
urged the Secretary to develop measurements that solicit more relevant 
and meaningful feedback.
    Discussion: While there are alternative mechanisms that may be 
available to measure impact, the Secretary requested outcome-based data 
elements because concrete data are needed to assess whether Centers are 
fulfilling the purposes contained in the statute and to assess 
applicant institutions' comparative strengths. The Secretary 
understands the concern over possible inflated data. All applicants, 
however, must attest to the accuracy of their applications under the 
penalty of perjury and eventual grantees are further subject to the 
provisions of the Federal False Claims Act.
    Changes: None.

--Strength of library. (Sec. 657.21(e))

    Comments: Several commenters favored the inclusion of factors that 
evaluate an institution's capacity for electronic access to research 
materials and cooperative arrangements for

[[Page 50201]]

sharing library resources. They applauded the Secretary's efforts to 
respond to current technological and economic trends affecting 
institutions.
    One commenter stated that the new factors detracted from 
recognizing the exemplary qualities and practices of traditional 
research libraries and that emphasis on these alternative strategies 
jeopardized institutional incentive for supporting libraries in 
resource-allocation plans.
    Discussion: The Secretary believes that the inclusion of 
information about electronic access to research materials and 
cooperative resource-sharing arrangements reflects current national 
trends in libraries. The strength of traditional collections still 
receives 10 of the possible 15 points for this criterion.
    Changes: None.

--Quality of the applicant's non-language instructional program. 
(Secs. 657.21(f) and 657.21(g))

    Comments: One commenter suggested replacing ``teaching assistants'' 
with the term ``instructional assistants'' to avoid inconsistencies 
among applicant institutions regarding the position description and 
duties.
    Discussion: The Secretary agrees that this revision is helpful for 
the reason stated by the commenter.
    Changes: The Secretary has replaced the term ``teaching 
assistants'' with the term ``instructional assistants'' in 
Secs. 657.21(f)(3) and 657.21(g)(3).

--Quality of the applicant's language instructional program. 
(Sec. 657.21(g))

    Comments: One commenter was concerned that by limiting student 
enrollment information in Sec. 657.21(g)(1) to courses offered directly 
by the applicant, the Secretary was not recognizing the importance of 
student enrollment in language programs offered by other institutions 
(for example, summer study programs) during the course of the students' 
overall language study at the applicant institution. The commenter 
requested that the Secretary rephrase the criterion to broaden the 
enrollment data that can be considered.
    Discussion: The Secretary agrees that the extent to which students 
from the Center's institution study foreign languages, both at the 
institution and through off-campus programs and courses, should be 
recognized under this criterion.
    Changes: The Secretary has revised Sec. 657.21(g)(1) to include 
student enrollment in programs offered by the Center or other 
providers.
    What is the amount of a fellowship? (Sec. 657.31)
    Comments: Most comments received from postsecondary faculty and 
administrators supported a standard institutional payment plus 
subsistence allowance because this system is equitable for both public 
and private institutions of higher education. These commenters also 
observed that the system will be more cost-effective and more equitable 
than the previous system of allocating FLAS funds.
    One commenter asked whether the new cost-of-education allowance 
system will permit institutions to reallocate unused portions of 
academic year fellowship awards to make awards to additional fellowship 
recipients. The commenter noted that frequently there are award 
recipients who complete their required courses without having to use 
the entire amount of the fellowship award.
    Several commenters believed the new cost-of-education allowance 
system substantially simplifies institutional administrative procedures 
for grantees.
    One commenter disagreed that the new cost-of-education allowance 
system simplifies grants administration for institutions.
    A few commenters opposed a standard institutional payment because 
they believed it will inhibit some institutions with high tuition 
graduate and professional programs from applying for the fellowships. 
The commenters stated that institutions do not have the financial 
resources to pay the difference between the standard institutional 
payment and high tuition costs, thereby making the fellowship awards 
less desirable to potential applicant institutions. One commenter 
suggested rectifying this problem by eliminating the requirement that 
institutions provide full fellowships to individual students. This 
commenter felt that institutions should be allowed to require students 
to share the cost of the fellowship.
    Two commenters believed that the cost-of-education allowance system 
will inhibit professional school students from receiving Foreign 
Language and Area Studies Fellowships and that this contradicts the 
current competitive priorities for the program.
    One commenter added that, if an institution forgoes applying for 
Foreign Language and Area Studies Fellowships due to the difference 
between the institutional payment and the actual tuition rate, then the 
cost-of-education allowance system will prevent access to the 
fellowship funds for students at high tuition institutions.
    Two commenters disagreed with the Secretary's rationale for using 
other graduate fellowship programs, such as Jacob Javits and Patricia 
Roberts Harris, as models for the proposed Foreign Language and Area 
Studies Fellowships Program cost-of-education allowance system. The 
commenters stated that the provisions under those programs differ from 
the FLAS program in that those Federal fellowship programs provide the 
awards directly to students and do not require institutions to accept 
prospective fellowship recipients enrolled in high-cost programs. Those 
commenters also claimed that, since the permitted scope of study 
conducted under the Javits and Harris fellowships is broader, the 
institution is able to make up the difference between the institutional 
payment and the actual tuition from across many departments in the 
university. The commenters claimed that the FLAS program has a narrower 
focus and, therefore, will have a direct impact on only the departments 
with international components.
    One commenter suggested phasing in the new cost-of-education 
allowance system over a three-year period to allow institutions that 
receive fellowship grants sufficient time to identify additional 
resources to supplement the institution's standard institutional 
payment.
    Discussion: The Secretary appreciates the comments supporting the 
cost-of-education allowance. The Secretary believes this system 
provides for an equitable allocation of funds whereby each institution 
will receive the same amount per student. The change will enable the 
Department and grantee institutions to administer the FLAS program more 
effectively. The Secretary believes the allowance system substantially 
encourages cost-effectiveness and improves program accountability. In 
this era of diminishing budgetary resources, the Secretary believes it 
is important to encourage cost-containment and the award of the largest 
possible number of fellowships out of limited funds. Without this 
change, there is limited disincentive to prevent an institution from 
paying itself ``full'' tuition for a smaller number of awards.
    Given that the majority of comments received from institutions 
supported this change, the Secretary disagrees with the commenters who 
suggested that institutions will not be able to support the FLAS 
program based on the cost-of-education allowance. The FLAS regulations 
allow unused portions of grants (such as institutional payments in 
excess of actual tuition costs) to be used by institutions to make 
additional fellowship awards.
    The Secretary disagrees with the suggestion that the cost-of-
education

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allowance be phased in over three years. The administrative burden and 
delayed phase-in would defeat the benefits sought under the cost-of-
education allowance system.
    Changes: None.
    What are the limitations on the use of funds for overseas 
fellowships? (Sec. 657.33(b)(1))
    Comments: One commenter supported the provision allowing students 
at the beginning proficiency level to use a fellowship award abroad if 
an appropriate program in the same language is not available in the 
United States. The commenter stated that the revised restriction 
provides opportunities for more students to enroll in meaningful 
overseas language training programs.
    One commenter suggested a revision to indicate that the advanced 
level of language proficiency is the preferred eligibility level for 
approval to use FLAS awards abroad and that students at the beginning 
or intermediate level may use a FLAS award abroad only if equivalent 
instruction is not available in the United States.
    Discussion: The Secretary believes that the suggested revision 
unnecessarily restricts management flexibility for grantees, 
particularly in the field of less-commonly-taught languages. The 
Secretary disagrees with the commenter's view that only students with 
advanced language proficiency should be allowed to use FLAS awards 
abroad because beginning and intermediate level students can also 
benefit from language study in an immersion environment. The Secretary 
believes the language proficiency eligibility requirements and the 
conditions for approval to use a fellowship outside the United States 
are sufficient to maximize the positive impact of the FLAS program.
    Changes: None.

--Other Changes. (Secs. 657.21(c)(2), 657.21(i), and 657.33(b)(1))

    Comments: None.
    Discussion: In the ``Impact and evaluation'' criterion, the 
Secretary believes that requiring that the applicant's evaluation plan 
be comprehensive and objective at the time of the submission of the 
application emphasizes the importance of the applicant's participation 
in and ongoing commitment to improving program quality and efficiency.
    Changes: The Secretary has changed ``that will be'' to ``that is'' 
in Sec. 657.21(c)(2).
    Comments: None.
    Discussion: The Secretary did not receive comments regarding the 
awarding of additional points to applicants. However, the Secretary 
believes that the awarding of additional points should be done only 
when the Secretary establishes a competitive priority.
    Changes: The Secretary has inserted the word ``competitive'' after 
the word ``more'' in the ``Priorities'' criterion (Sec. 657.21(i)).
    Comments: None.
    Discussion: Although the Secretary did not receive comments 
concerning whether fellowships for overseas programs were limited to 
foreign language studies, the Secretary believes that limiting the use 
of fellowships overseas for only foreign language programs at the 
specified proficiency levels reinforces the statutory purpose of 
providing specialized training opportunities to eligible students.
    Changes: The Secretary has added the words ``foreign language'' 
after the word ``overseas'' in Sec. 657.33(b)(1).

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 
collection of information in these final regulations is displayed at 
the end of the affected section 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 government 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 final 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 657

    Colleges and universities, Education, International education, 
Reporting and recordkeeping requirements.

    Dated: September 18, 1996.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.

(Catalog of Federal Domestic Assistance Number 84.015 National 
Resource Centers and Foreign Language and Area Studies Fellowships 
Programs.)

    The Secretary amends Title 34 of the Code of Federal Regulations by 
revising Part 657 to read as follows:

PART 657--FOREIGN LANGUAGE AND AREA STUDIES FELLOWSHIPS PROGRAM

Subpart A--General

Sec.
657.1  What is the Foreign Language and Area Studies Fellowship 
Program?
657.2  Who is eligible to receive an allocation of fellowships?
657.3  Who is eligible to receive a fellowship?
657.4  What regulations apply?
657.5  What definitions apply?

Subpart B--How Does an Institution or a Student Submit an Application?

657.10  What combined applications may an institution submit?
657.11  How does a student apply for a fellowship?

Subpart C--How Does the Secretary Select an Institution for an 
Allocation of Fellowships?

657.20  How does the Secretary evaluate an institutional application 
for an allocation of fellowships?
657.21  What criteria does the Secretary use in selecting 
institutions for an allocation of fellowships?
657.22  What priorities may the Secretary establish?

Subpart D--What Conditions Must Be Met By a Grantee and a Fellow?

657.30  What is the duration of and what are the limitations on 
fellowships awarded to individuals by institutions?
657.31  What is the amount of a fellowship?
657.32  What is the payment procedure for fellowships?
657.33  What are the limitations on the use of funds for overseas 
fellowships?
657.34  Under what circumstances must an institution terminate a 
fellowship?

    Authority: 20 U.S.C. 1122, unless otherwise noted.

Subpart A--General


Sec. 657.1  What is the Foreign Language and Area Studies Fellowships 
Program?

    Under the Foreign Language and Area Studies Fellowships Program, 
the Secretary awards fellowships, through

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institutions of higher education, to students who are--
    (a) Enrolled for graduate training in a Center or program approved 
by the Secretary under this part; and
    (b) Undergoing performance-based modern foreign language training 
or training in a program for which performance-based modern foreign 
language instruction is being developed, in combination with area 
studies, international studies, or the international aspects of 
professional studies.

(Authority: 20 U.S.C. 1122)


Sec. 657.2  Who is eligible to receive an allocation of fellowships?

    (a) The Secretary awards an allocation of fellowships to an 
institution of higher education or to a combination of institutions of 
higher education that--
    (1) Operates a Center or program approved by the Secretary under 
this part;
    (2) Teaches modern foreign languages under a program described in 
paragraph (b) of this section; and
    (3) In combination with the teaching described in paragraph (a)(2) 
of this section--
    (i) Provides instruction in the disciplines needed for a full 
understanding of the area, regions, or countries in which the foreign 
languages are commonly used; or
    (ii) Conducts training and research in international studies, the 
international aspects of professional and other fields of study, or 
issues in world affairs that concern one or more countries.
    (b) In teaching those modern foreign languages for which an 
allocation of fellowships is made available, the institution must be 
either using a program of performance-based training or developing a 
performance-based training program.
    (c) The Secretary uses the criteria in Sec. 657.21 both to approve 
Centers and programs for the purpose of receiving an allocation of 
fellowships and to evaluate applications for an allocation of 
fellowships.
    (d) An institution does not need to receive a grant under the 
National Resource Center Program (34 CFR Part 656) to receive an 
allocation of fellowships under this part.

(Authority: 20 U.S.C. 1122)


Sec. 657.3  Who is eligible to receive a fellowship?

    A student is eligible to receive a fellowship if the student--
    (a)(1) Is a citizen or national of the United States; or
    (2) Is a permanent resident of the United States;
    (b) Is accepted for enrollment or is enrolled--
    (1) In an institution receiving an allocation of fellowships; and
    (2) In a program that combines modern foreign language training 
with--
    (i) Area or international studies; or
    (ii) Research and training in the international aspects of 
professional and other fields of study;
    (c) Shows potential for high academic achievement based on such 
indices as grade point average, class ranking, or similar measures that 
the institution may determine; and
    (d) Is enrolled in a program of modern foreign language training in 
a language for which the institution has developed or is developing 
performance-based instruction.

(Authority: 20 U.S.C. 1122)


Sec. 657.4  What regulations apply?

    The following regulations apply to this program:
    (a) The regulations in 34 CFR Part 655.
    (b) The regulations in this Part 657.

(Authority: 20 U.S.C. 1122)


Sec. 657.5  What definitions apply?

    The following definitions apply to this part:
    (a) The definitions in 34 CFR 655.4.
    (b) Center means an administrative unit of an institution of higher 
education that has direct access to highly qualified faculty and 
library resources, and coordinates a concentrated effort of educational 
activities, including training in modern foreign languages and various 
academic disciplines, in its subject area.
    (c) Fellow means a person who receives a fellowship under this 
part.
    (d) Fellowship means the payment a fellow receives under this part.
    (e) Program means a concentration of educational resources and 
activities in modern foreign language training and related studies.

(Authority: 20 U.S.C. 1122)

Subpart B--How Does an Institution or a Student Submit an 
Application?


Sec. 657.10  What combined application may an institution submit?

    An institution that wishes to apply for an allocation of 
fellowships and for a grant to operate a Center under 34 CFR Part 656 
may submit a combined application for both grants to the Secretary.

(Authority: 20 U.S.C. 1122)


Sec. 657.11  How does a student apply for a fellowship?

    (a) A student shall apply for a fellowship directly to an 
institution of higher education that has received an allocation of 
fellowships.
    (b) The applicant shall provide sufficient information to enable 
the institution to determine whether he or she is eligible to receive a 
fellowship and whether he or she should be selected to receive a 
fellowship.

(Authority: 20 U.S.C. 1122)

Subpart C--How Does the Secretary Select an Institution for an 
Allocation of Fellowships?


Sec. 657.20  How does the Secretary evaluate an institutional 
application for an allocation of fellowships?

    (a) The Secretary evaluates an application for an allocation of 
fellowships on the basis of the quality of the applicant's Center or 
program. The applicant's Center or program is evaluated and approved 
under the criteria in Sec. 657.21.
    (b) In general, the Secretary awards up to 140 possible points for 
these criteria. However, if priority criteria are used, the Secretary 
awards up to 150 possible points. The maximum possible points for each 
criterion are shown in parentheses.

(Authority: 20 U.S.C. 1122)


Sec. 657.21  What criteria does the Secretary use in selecting 
institutions for an allocation of fellowships?

    (a) Foreign language and area studies fellowships awardee selection 
procedures. (15 points) The Secretary reviews each application to 
determine whether the selection plan is of high quality, showing how 
awards will be advertised, how students apply, what selection criteria 
are used, who selects the fellows, when each step will take place, and 
how the process will result in awards being made to correspond to any 
announced priorities.
    (b) Quality of staff resources. (15 points) The Secretary reviews 
each application to determine--
    (1) The extent to which teaching faculty and other staff are 
qualified for the current and proposed activities and training 
programs, are provided professional development opportunities 
(including overseas experience), and participate in teaching, 
supervising, and advising students (5 points);
    (2) The adequacy of applicant staffing and oversight arrangements 
and the extent to which faculty from a variety of departments, 
professional schools, and the library are involved (5 points); and
    (3) The extent to which the applicant, as part of its 
nondiscriminatory employment practices, encourages applications for 
employment from persons who are members of groups that

[[Page 50204]]

have been traditionally underrepresented, such as members of racial or 
ethnic minority groups, women, persons with disabilities, and the 
elderly (5 points).
    (c) Impact and evaluation. (20 points) The Secretary reviews each 
application to determine--
    (1) The extent to which the applicant's activities and training 
programs have contributed to an improved supply of specialists on the 
program's subject as shown through indices such as graduate enrollments 
and placement data; and the extent to which the applicant supplies a 
clear description of how the applicant will provide equal access and 
treatment of eligible project participants who are members of groups 
that have been traditionally underrepresented, such as members of 
racial or ethnic minority groups, women, persons with disabilities, and 
the elderly (15 points); and
    (2) The extent to which the applicant provides an evaluation plan 
that is comprehensive and objective and that will produce quantifiable, 
outcome-measure-oriented data; and the extent to which recent 
evaluations have been used to improve the applicant's program (5 
points).
    (d) Commitment to the subject area on which the applicant or 
program focuses. (10 points) The Secretary reviews each application to 
determine--
    (1) The extent to which the institution provides financial and 
other support to the operation of the applicant, teaching staff for the 
applicant's subject area, library resources, and linkages with 
institutions abroad (5 points); and
    (2) The extent to which the institution provides financial support 
to graduate students in fields related to the applicant's teaching 
program (5 points).
    (e) Strength of library. (15 points) The Secretary reviews each 
application to determine--
    (1) The strength of the institution's library holdings (both print 
and non-print, English and foreign language) for graduate students; and 
the extent to which the institution provides financial support for the 
acquisition of library materials and for library staff in the subject 
area of the applicant (10 points); and
    (2) The extent to which research materials at other institutions 
are available to students through cooperative arrangements with other 
libraries or on-line databases (5 points).
    (f) Quality of the applicant's non-language instructional program. 
(25 points) The Secretary reviews each application to determine--
    (1) The quality and extent of the applicant's course offerings in a 
variety of disciplines, including the extent to which courses in the 
applicant's subject matter are available in the institution's 
professional schools (10 points);
    (2) The extent to which the applicant offers depth of specialized 
course coverage in one or more disciplines on the applicant's subject 
area (5 points);
    (3) The extent to which the institution employs a sufficient number 
of teaching faculty to enable the applicant to carry out its purposes 
and the extent to which instructional assistants are provided with 
pedagogy training (5 points); and
    (4) The extent to which interdisciplinary courses are offered for 
graduate students (5 points).
    (g) Quality of the applicant's language instructional program. (20 
points) The Secretary reviews each application to determine--
    (1) The extent to which the applicant provides instruction in the 
languages of the applicant's subject area and the extent to which 
students enroll in the study of the languages of the subject area 
through programs or instruction offered by the applicant or other 
providers (5 points);
    (2) The extent to which the applicant provides three or more levels 
of language training and the extent to which courses in disciplines 
other than language, linguistics, and literature are offered in 
appropriate foreign languages (5 points);
    (3) Whether sufficient numbers of language faculty are available to 
teach the languages and levels of instruction described in the 
application and the extent to which language teaching staff (including 
faculty and instructional assistants) have been exposed to current 
language pedagogy training appropriate for performance-based teaching 
(5 points); and
    (4) The quality of the language program as measured by the 
performance-based instruction being used or developed, the adequacy of 
resources for language teaching and practice, and language proficiency 
requirements (5 points).
    (h) Quality of curriculum design. (20 points) The Secretary reviews 
each application to determine--
    (1) The extent to which the applicant's curriculum provides 
training options for graduate students from a variety of disciplines 
and professional fields and the extent to which these programs and 
their requirements (including language requirements) are appropriate 
for an applicant in this subject area and result in graduate training 
programs of high quality (10 points);
    (2) The extent to which the applicant provides academic and career 
advising services for students (5 points); and
    (3) The extent to which the applicant has established formal 
arrangements for students to conduct research or study abroad and the 
extent to which these arrangements are used; and the extent to which 
the institution facilitates student access to other institutions' study 
abroad and summer language programs (5 points).
    (i) Priorities. (10 points) If one or more competitive priorities 
have been established under Sec. 657.22, the Secretary reviews each 
application for information that shows the extent to which the Center 
or program meets these priorities.

(Approved by the Office of Management and Budget under control number 
1840-0068)

(Authority: 20 U.S.C. 1122)


Sec. 657.22  What priorities may the Secretary establish?

    (a) The Secretary may establish one or more of the following 
priorities for the allocation of fellowships:
    (1) Specific world areas, or countries, such as East Asia or 
Mexico.
    (2) Languages, such as Chinese.
    (3) Levels of language offerings.
    (4) Academic disciplines, such as linguistics or sociology.
    (5) Professional studies, such as business, law, or education;
    (6) Particular subjects, such as population growth and planning, or 
international trade and business.
    (7) A combination of any of these categories.
    (b) The Secretary announces any priorities in the application 
notice published in the Federal Register.
(Authority: 20 U.S.C. 1122)

Subpart D--What Conditions Must Be Met by a Grantee and a Fellow?


Sec. 657.30  What is the duration of and what are the limitations on 
fellowships awarded to individuals by institutions?

    (a) Duration. An institution may award a fellowship to a student 
for--
    (1) One academic year; or
    (2) One summer session if the summer session provides the fellow 
with the equivalent of one academic year of modern foreign language 
study.
    (b) Vacancies. If a fellow vacates a fellowship before the end of 
an award period, the institution to which the fellowship is allocated 
may reaward the balance of the fellowship to another student if--
    (1) The student meets the eligibility requirements in Sec. 657.3; 
and
    (2) The remaining fellowship period comprises at least one full 
academic

[[Page 50205]]

quarter, semester, trimester, or summer session as described in 
paragraph (a)(2) of this section.

(Authority: 20 U.S.C. 1122)


Sec. 657.31  What is the amount of a fellowship?

    (a)(1) An institution shall award a stipend to fellowship 
recipients.
    (2) Each fellowship includes an institutional payment and a 
subsistence allowance to be determined by the Secretary.
    (3) If the institutional payment determined by the Secretary is 
greater than the tuition and fees charged by the institution, the 
institutional payment portion of the fellowship is limited to actual 
tuition and fees. The difference between actual tuition and fees and 
the Secretary's institutional payment shall be used to fund additional 
fellowships to the extent that funds are available for a full 
subsistence allowance.
    (4) If permitted by the Secretary, the fellowship may include an 
allowance for travel and an allowance for dependents.
    (b) The Secretary announces in an application notice published in 
the Federal Register--
    (1) The amounts of the subsistence allowance and the institutional 
payment for an academic year and the subsistence allowance and the 
institutional payment for a summer session;
    (2) Whether travel and dependents' allowances will be permitted; 
and
    (3) The amount of travel and dependents' allowances.

(Authority: 20 U.S.C. 1122)


Sec. 657.32  What is the payment procedure for fellowships?

    (a) An institution shall pay a fellow his or her subsistence and 
any other allowance in installments during the term of the fellowship.
    (b) An institution shall make a payment only to a fellow who is in 
good standing and is making satisfactory progress.
    (c) The institution shall make appropriate adjustments of any 
overpayment or underpayment to a fellow.
    (d) Funds not used by one recipient for reasons of withdrawal are 
to be used for alternate recipients to the extent that funds are 
available for a full subsistence allowance.

(Authority: 20 U.S.C. 1122)


Sec. 657.33  What are the limitations on the use of funds for overseas 
fellowships?

    (a) Before awarding a fellowship for use outside the United States, 
an institution shall obtain the approval of the Secretary.
    (b) The Secretary may approve the use of a fellowship outside the 
United States if the student is--
    (1) Enrolled in an overseas foreign language program approved by 
the institution at which the student is enrolled in the United States 
for study at an intermediate or advanced level or at the beginning 
level if appropriate equivalent instruction is not available in the 
United States; or
    (2) Engaged during the academic year in research that cannot be 
done effectively in the United States and is affiliated with an 
institution of higher education or other appropriate organization in 
the host country.

(Authority: 20 U.S.C. 1122)


Sec. 657.34  Under what circumstances must an institution terminate a 
fellowship?

    An institution shall terminate a fellowship if--
    (a) The fellow is not making satisfactory progress, is no longer 
enrolled, or is no longer in good standing at the institution; or
    (b) The fellow fails to follow the course of study, including 
modern foreign language study, for which he or she applied, unless a 
revised course of study is otherwise approvable under this part.

(Authority: 20 U.S.C. 1122)

[FR Doc. 96-24463 Filed 9-23-96; 8:45 am]
BILLING CODE 4000-01-P