[Federal Register Volume 79, Number 212 (Monday, November 3, 2014)]
[Notices]
[Pages 65197-65200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26075]


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DEPARTMENT OF EDUCATION


Applications for Eligibility Designation; Programs under Parts A 
and F of Title III of the Higher Education Act of 1965, as amended 
(HEA), and Programs under Title V of the HEA

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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    Overview Information:
    This notice applies to the following programs:
    1. Programs authorized under Part A, Title III of the HEA: 
Strengthening Institutions Program (Part A SIP), Alaska Native and 
Native Hawaiian-Serving Institutions (Part A ANNH), Predominantly Black 
Institutions (Part A PBI), Native American-Serving Nontribal 
Institutions (Part A NASNTI), and Asian American and Native American 
Pacific Islander-Serving Institutions (Part A AANAPISI).
    2. Programs authorized under Part F, Title III of the HEA: 
Hispanic-Serving Institutions STEM and Articulation (Part F, HSI STEM 
and Articulation), Predominantly Black Institutions (Part F PBI), 
Alaska Native and Native Hawaiian-Serving Institutions (Part F ANNH), 
Native American-Serving Nontribal Institutions (Part F NASNTI) and 
Asian American and Native American Pacific Islander-Serving 
Institutions (Part F AANAPISI).
    3. Programs authorized under Title V of the HEA: Developing 
Hispanic-Serving Institutions (HSI) and Promoting Postbaccalaureate 
Opportunities for Hispanic Americans (PPOHA). Notice inviting 
applications for designation as an eligible institution for Fiscal Year 
(FY) 2015.

DATES: Application Available: November 3, 2014.
    Deadline for Transmittal of Applications: December 18, 2014.

    Special Note: Section 312 of the HEA and 34 CFR 607.2-607.5 
include most of the basic eligibility requirements for grant 
programs authorized under Titles III and V of the HEA. Section 
312(b)(1)(B) of the HEA provides that, to be eligible for these 
programs, an institution of higher education's average ``educational 
and general expenditures'' (E&G) per full-time equivalent (FTE) 
undergraduate student must be less than the average E&G expenditures 
per FTE undergraduate student of institutions that offer similar 
instruction in that year. 34 CFR 607.4(a). Since 2004, the National 
Center for Education Statistics (NCES) has calculated core expenses 
(Core Expenses) per FTE of postsecondary institutions, a statistic 
similar to E&G per FTE. Both E&G per FTE and Core Expenses per FTE 
are based on regular operational expenditures of postsecondary 
institutions (excluding auxiliary enterprises, independent 
operations, and hospital expenses). They differ only in that E&G per 
FTE is based on fall undergraduate enrollment, while Core Expenses 
per FTE is based on 12-month undergraduate enrollment for the 
academic year. To avoid inconsistency in the data submitted to and 
produced by the Department, for the purpose of section 312(b)(1)(B) 
of the HEA, E&G per FTE will now be calculated using the same 
methodology as Core Expenses per FTE. Accordingly, with regard to 
this and future notices inviting applications, to calculate E&G per 
FTE for the purpose of determining institutional eligibility for 
programs under Part A and Part F of Title III and Title V of the 
HEA, the Department will apply the NCES methodology for calculating 
Core Expenses per FTE. Institutions applying for eligibility must 
use the Core Expenses per FTE data reported to NCES's Integrated 
Postsecondary Education Data System (IPEDS) for the most currently 
available academic year, in this case 2012-2013.

Full Text of Announcement

I. Funding Opportunity Description

    Purpose of Programs:
    The Part A SIP, Part A ANNH, Part A PBI, Part A NASNTI, and Part A 
AANAPISI programs are authorized under Title III, Part A, of the HEA. 
The HSI and PPOHA programs are authorized under Title V of the HEA. The 
Part F, HSI STEM and Articulation, Part F PBI, Part F AANAPISI, Part F 
ANNH, and Part F NASNTI programs are authorized under Title III, Part F 
of the HEA. Please note that certain programs in this notice have the 
same or a similar name as another program that falls under a different 
statutory authority. For this reason, we specify the statutory 
authority as part of the acronym for certain programs.
    Under the programs discussed above, institutions of higher 
education (``IHEs'' or ``institutions'') are eligible to apply for 
grants if they meet specific statutory and regulatory eligibility 
requirements. An IHE that submits an application and is designated as 
an eligible institution may also receive a waiver of certain non-
Federal cost-sharing requirements for one year under the Federal 
Supplemental Educational Opportunity Grants (FSEOG) program authorized 
by Part A, Title IV of the HEA and the Federal Work-Study Program (FWS) 
program authorized by section 443 of the HEA. Qualified institutions 
may receive the FWS and FSEOG waivers for one year even if they do not 
receive a grant under the Title III or Title V Programs. An applicant 
that receives a grant from the Student Support Services (SSS) program 
that is authorized under section 402D of the HEA, 20 U.S.C. 1070a-14, 
may receive a waiver of the required non-Federal share for institutions 
for the duration of the grant. An applicant that receives a grant from 
the Undergraduate International Studies and Foreign Language (UISFL) 
program that is authorized under section 604 of the HEA, 20 U.S.C. 
1124, may receive a waiver or reduction of the required non-Federal 
share for institutions for the duration of the grant.

    Special Note: To qualify as an eligible institution under the 
grant programs listed in this notice, your institution must satisfy 
several criteria. For most of these programs, these criteria include 
those that relate to the enrollment of needy students and to Core 
Expenses per FTE for a specified base year. The most recent data 
available for Core Expenses per FTE are for base year 2012-2013. In 
order to award FY 2015 grants in a timely manner, we will use this 
data to evaluate eligibility. Therefore, in completing your 
eligibility application, please use Core Expenses per FTE reported 
to IPEDS for academic year 2012-2013.

    Accordingly, all institutions interested in applying for a new 
grant under the Title III or Title V programs addressed in this notice 
or in requesting a waiver of the non-Federal cost share, must apply for 
eligibility designation for FY 2015. Under the HEA, any IHE interested 
in applying for a grant under any of these programs must first be 
designated as an eligible institution. (34 CFR 606.5 and 607.5).
    Eligible Applicants:
    The eligibility requirements for the programs authorized under Part 
A of Title III of the HEA are in Sections 312 and 317-320 of the HEA 
(20 U.S.C. 1058, 1059d-1059g) and in the Department's implementing 
regulations at 34 CFR 607.2 through 607.5. The regulations may be 
accessed at:

[[Page 65198]]

www.gpo.gov/fdsys/pkg/CFR-2001-title34-vol3/xml/CFR-2001-title34-vol3-part607.xml.
    The eligibility requirements for the programs authorized by Part F 
of Title III of the HEA are in Section 371 of the HEA (20 U.S.C. 
1067q). We are developing regulations for these programs; there are 
currently no specific program regulations.
    The eligibility requirements for the Title V HSI Program are in 
Part A of Title V of the HEA and in 34 CFR 606.2 through 34 CFR 606.5. 
The regulations may be accessed at: www.gpo.gov/fdsys/pkg/CFR-2001-title34-vol3/xml/CFR-2001-title34-vol3-part606.xml.
    The requirements for the PPOHA Program are in Part B of Title V of 
the HEA and in the notice of final requirements published in the 
Federal Register on July 27, 2010 (75 FR 44055), and in 34 CFR 606.2(a) 
and (b), and 606.3 through 606.5.
    Enrollment of Needy Students: For the Title III, Part A SIP; Part A 
ANNH; Part A NASNTI; Part A AANAPISI Part A PBI; Title III, Part F HSI 
STEM and Articulation; Part F AANAPISI; Part F NASNTI; Part F ANNH; 
Part F PBI; HSI and PPOHA programs, an institution is considered to 
have an enrollment of needy students if: (1) At least 50 percent of its 
degree students received financial assistance under: The Federal Pell 
Grant, FSEOG, FWS, or the Federal Perkins Loan Programs; or (2) the 
percentage of its undergraduate degree students who were enrolled on at 
least a half-time basis and received Federal Pell Grants exceeded the 
median percentage of undergraduate degree students who were enrolled on 
at least a half-time basis and received Federal Pell Grants at 
comparable institutions that offer similar instruction.
    To qualify under this latter criterion, an institution's Federal 
Pell Grant percentage for base year 2012-2013 must be more than the 
median for its category of comparable institutions provided in the 
2012-2013 Median Pell Grant and Core Expenses per FTE Student Table in 
this notice.
    For the definition of ``Enrollment of Needy Students'' for purposes 
of the Part A PBI Program, see section 318(b)(2) of the HEA, and for 
purposes of the Part F PBI program see section 371(c)(9)of the HEA.
    Core Expenses Per FTE Student: For the Title III, Part A SIP; Part 
A ANNH; Part A PBI; Part A NASNTI; Part A AANAPISI; Title III, Part F 
HSI STEM and Articulation; Part F PBI; Part F AANAPISI; Part F ANNH; 
Part F NASNTI; HSI and PPOHA programs, an institution should compare 
its base year 2012-2013 Core Expenses per FTE student to the average 
Core Expenses per FTE student for its category of comparable 
institutions in the base year 2012-2013 Median Pell Grant and Average 
Core Expenses per FTE Student Table in this notice. The institution 
meets this eligibility requirement under these programs if its Core 
Expenses for the 2012-2013 base year are less than the average for its 
category of comparable institutions.
    Core Expenses are defined as the total expenses for the essential 
education activities of the institution. Core Expenses for public 
institutions reporting under the Governmental Accounting Standards 
Board (GASB) standards include expenses for instruction, research, 
public service, academic support, student services, institutional 
support, operation and maintenance of plant, depreciation, scholarships 
and fellowships, interest and other operating and nonoperating 
expenses. Core Expenses for institutions reporting under the Financial 
Accounting Standards Board (FASB) standards (primarily private, not-
for-profit and for-profit) include expenses for instruction, research, 
public service, academic support, student services, institutional 
support, net grant aid to students, and other expenses. For both FASB 
and GASB institutions, core expenses exclude expenses for auxiliary 
enterprises (e.g., bookstores, dormitories), hospitals, and independent 
operations. The following table identifies the relevant median Federal 
Pell Grant percentages for the base year 2012-2013 and the relevant 
Core Expenses per FTE student for the base year 2012-2013 for the four 
categories of comparable institutions:

------------------------------------------------------------------------
                                          Base year 2012- Base year 2012-
                                            2013 median    2013 average
           Type of institution              pell grant     core expenses
                                            percentage        per FTE
                                                              student
------------------------------------------------------------------------
Two-year Public Institutions............            34.7         $11,287
Two-year Non-profit Private Institutions              38          13,657
Four-year Public Institutions...........              45          27,608
Four-year Non-profit Private                          44          34,361
 Institutions...........................
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    Waiver Information: IHEs that are unable to meet the needy student 
enrollment requirement or the Core Expenses per FTE requirement may 
apply to the Secretary for waivers of these requirements, as described 
in sections 392 and 522 of the HEA, and the implementing regulations at 
34 CFR 606.3(b), 606.4(c) and (d), 607.3(b), and 607.4(c) and (d).
    IHEs requesting a waiver of the needy student enrollment 
requirement or the Core Expenses per FTE requirement must include in 
their application detailed information supporting the waiver request, 
as described in the instructions for completing the application.
    The regulations governing the Secretary's authority to waive the 
needy student requirement, 34 CFR 606.3(b)(2) and (3) and 607.3(b)(2) 
and (3), refer to ``low-income'' students or families. The regulations 
at 34 CFR 606.3(c) and 607.3(c) define ``low-income'' as an amount that 
does not exceed 150 percent of the amount equal to the poverty level, 
as established by the U.S. Census Bureau.
    For the purposes of this waiver provision, the following table sets 
forth the low-income levels for the various sizes of families:

[[Page 65199]]



                      2012 Annual Low-Income Levels
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                   Family income for
                   the 48 contiguous
  Size of family    States, DC, and     Family income     Family income
       unit             outlying         for Alaska        for Hawaii
                     jurisdictions
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              1            $16,755            $20,955           $19,290
              2             22,695             28,380            26,115
              3             28,635             35,805            32,940
              4             34,575             43,230            39,765
              5             40,515             50,655            46,590
              6             46,455             58,080            53,415
              7             52,395             65,505            60,240
              8             58,335             72,930            67,065
------------------------------------------------------------------------


    Note: We use the 2012 annual low-income levels because those are 
the amounts that apply to the family income reported by students 
enrolled for the fall 2012 semester. For family units with more than 
eight members, add the following amount for each additional family 
member: $5,940 for the contiguous 48 States, the District of 
Columbia, and outlying jurisdictions; $7,425 for Alaska; and $6,825 
for Hawaii.

    The figures shown under family income represent amounts equal to 
150 percent of the family income levels established by the U.S. Census 
Bureau for determining poverty status. The poverty guidelines were 
published by the U.S. Department of Health and Human Services in the 
Federal Register on January 26, 2012 (77 FR 4034).
    The information about ``metropolitan statistical areas'' referenced 
in 34 CFR 606.3(b)(4) and 607.3(b)(4) may be obtained at: 
www.census.gov/prod/2010pubs/10smadb/appendixc.pdf and www.census.gov/prod/2008pubs/07ccdb/appd.pdf.
    Electronic Submission of Applications:
    Applications for designation of eligibility must be submitted 
electronically at: http://opeweb.ed.gov/title3and5/.
    To enter the Web site, you must use your institution's unique 8-
digit identifier, i.e., your Office of Postsecondary Education 
Identification Number (OPE ID Number). Your business office or student 
financial aid office should have the OPE ID Number. If not, contact the 
Department using the email addresses of the contact persons listed in 
this notice under For Applications and Further Information Contact. You 
will find detailed instructions for completing the application form 
electronically under the ``Eligibility'' link at: http://www2.ed.gov/about/offices/list/ope/idues/eligibility.html.
    If your institution is unable to meet the needy student enrollment 
requirement or the Core Expenses requirement, you may request a waiver 
of one or both of these requirements. To request a waiver, you must 
upload a waiver narrative at: http://opeweb.ed.gov/title3and5/.
    Exception to the Electronic Submission Requirement: You qualify for 
an exception to the electronic submission requirement, and may submit 
your application in paper format if you are unable to submit an 
application electronically because--
     You do not have access to the Internet; or
     You do not have the capacity to upload documents to the 
Web site;
    and
     No later than two weeks before the application deadline 
date (14 calendar days; or, if the fourteenth calendar day before the 
application deadline date falls on a Federal holiday, the next business 
day following the Federal holiday), you mail or fax a written statement 
to the Department, explaining which of the two grounds for an exception 
prevents you from using the Internet to submit your application. If you 
mail your written statement to the Department, it must be postmarked no 
later than two weeks before the application deadline date. If you fax 
your written statement to the Department, we must receive the faxed 
statement no later than two weeks before the application deadline date.
    Mail or fax your statement to: Nancy Regan, U.S. Department of 
Education, 1990 K Street NW., Room 6032, Washington, DC 20006-8513. 
Fax: (202) 502-7861.
    Your paper application must be submitted in accordance with the 
mail or hand delivery instructions described in this notice.
    Submission of Paper Applications by Mail.
    If you qualify for an exception to the electronic submission 
requirement, you may mail (through the U.S. Postal Service or a 
commercial carrier) your application to the Department. You must mail 
the original and two copies of your application, on or before the 
application deadline date, to the Department at the following address: 
Nancy Regan, U.S. Department of Education, 1990 K Street NW., Room 
6032, Washington, DC 20006-8513.
    You must show proof of mailing consisting of one of the following:
    (1) A legibly dated U.S. Postal Service postmark.
    (2) A legible mail receipt with the date of mailing stamped by the 
U.S. Postal Service.
    (3) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    (4) Any other proof of mailing acceptable to the Secretary of the 
U.S. Department of Education.
    If you mail your application through the U.S. Postal Service, we do 
not accept either of the following as proof of mailing:
    (1) A private metered postmark.
    (2) A mail receipt that is not dated by the U.S. Postal Service.
    If your application is postmarked after the application deadline 
date, we will not consider your application.

    Note: The U.S. Postal Service does not uniformly provide a dated 
postmark. Before relying on this method, you should check with your 
local post office.

    Submission of Paper Applications by Hand Delivery.
    If you qualify for an exception to the electronic submission 
requirement, you (or a courier service) may deliver your paper 
application to the Department by hand. You must deliver the 
application, on or before the application deadline date, to the 
Department at the following address: Nancy Regan, U.S. Department of 
Education, 1990 K Street NW., Room 6032, Washington, DC 20006-8513.
    Hand delivered applications will be accepted daily between 8:00 
a.m. and 4:30 p.m., Washington, DC time, except Saturdays, Sundays, and 
Federal holidays.
    Applicable Regulations: This notice inviting applications (NIA) is 
being published before the Department adopts the Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements in 2 CFR part 
200. We expect to publish interim final

[[Page 65200]]

regulations that would adopt those requirements before December 26, 
2014, and make those regulations effective on that date. Because grants 
in the programs to which this separate application process applies will 
likely be made after the Department adopts the requirements in 2 CFR 
part 200, we list as applicable regulations both those that are 
currently effective and those that will be effective at the time the 
Department makes grants.
    The current regulations follow: (a) The Education Department 
General Administrative Regulations (EDGAR) in 34 CFR parts 74, 75, 77, 
79, 80, 82, 84, 86, 97, 98, and 99. (b) The OMB Guidelines to Agencies 
on Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR 
part 180, as adopted as regulations of the Department in 2 CFR part 
3485.
    At the time we award grants under this NIA, the following 
regulations will apply: (a) EDGAR in 34 CFR parts 75, 77, 79, 82, 84, 
86, 97, 98, and 99. (b) The OMB Guidelines to Agencies on 
Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part 
180, as adopted as regulations of the Department in 2 CFR part 3485 and 
the Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards in 2 CFR part 200, as adopted in 2 CFR 
part 3474.
    Regardless of the timing of the publication of the interim final 
regulations, the following also will apply to this NIA: (a) The 
regulations for the Title III Programs in 34 CFR part 607, and for the 
HSI Program in 34 CFR part 606. (b) The notice of final requirements 
for the PPOHA Program, published in the Federal Register on July 27, 
2010 (75 FR 44055).

    Note: There are no program-specific regulations for the Part A 
AANAPISI, Part A NASNTI, and Part A PBI programs or any of the Part 
F, Title III programs. Also, there have been amendments to the HEA 
since the Department last issued regulations for the programs 
established under Titles III and V of the statute. Accordingly, we 
encourage each potential applicant to read the applicable sections 
of the HEA in order to fully understand the eligibility requirements 
for the program for which they are applying. Please note that the 
Department is in the process of amending the Title III and Title V 
regulations. These updated regulations will include regulations for 
Part A AANAPISI, Part A NASNTI, and Part A PBI programs, as well as 
the Part F, Title III programs.


    Note: The regulations in 34 CFR part 79 apply to all applicants 
except federally recognized Indian tribes.


    Note: The regulations in 34 CFR part 86 apply to institutions of 
higher education only.

    For Applications and Further Information Contact: Robyn Wood or 
Jeffrey Hartman, Institutional Service, U.S. Department of Education, 
1990 K Street NW., Room 6134, Request for Eligibility Designation, 
Washington, DC 20006-8513.
    You can contact these individuals at the following email addresses 
or phone numbers: [email protected], 202-502-7437, 
[email protected], 202-502-7607.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
    Individuals with disabilities can obtain this document in an 
accessible format (e.g., braille, large print, audio tape, or compact 
disc) on request to one of the contact persons listed in this section.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: www.gpo.gov/fdsys. At this site you can view this document, as well 
as all other documents of this Department published in the Federal 
Register, in text or Adobe Portable Document Format (PDF). To use PDF 
you must have Adobe Acrobat Reader, which is available free at the 
site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

    Dated: October 29, 2014.
Lynn B. Mahaffie,
Acting Assistant Secretary for Postsecondary Education.
[FR Doc. 2014-26075 Filed 10-31-14; 8:45 am]
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