[Federal Register Volume 84, Number 241 (Monday, December 16, 2019)]
[Notices]
[Pages 68434-68438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27048]


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DEPARTMENT OF EDUCATION


Eligibility Designations and Applications for Waiving Eligibility 
Requirements; Programs Under Parts A and F of Title III and Programs 
Under Title V of the Higher Education Act of 1965, as Amended (HEA)

AGENCY: Office of Postsecondary Education, Department of Education 
(Department).

ACTION: Notice.

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SUMMARY: The Department announces the process for designation of 
eligible institutions and invites applications for waivers of 
eligibility requirements for fiscal year (FY) 2020, for the following 
programs:
    1. Programs authorized under title III, part A 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 title III, part F 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).
    Note: The authority to award new grants under section 371 of the 
HEA expired at the end of FY 2019. However, we will review applications 
for eligibility should Congress renew the Department's authority to 
award new grants under this section.
    3. Programs authorized under title V of the HEA: Developing 
Hispanic-Serving Institutions (HSI) and Promoting Postbaccalaureate 
Opportunities for Hispanic Americans (PPOHA).

DATES: 
Applications Available: December 16, 2019.
    Deadline for Transmittal of Applications: January 15, 2020.

FOR FURTHER INFORMATION CONTACT: Christopher Smith, Institutional 
Service, U.S. Department of Education, 400 Maryland Avenue SW, Room 
250-10, Washington, DC 20202. Telephone: (202) 453-7946. Email: 
[email protected]; or Jason Cottrell, Institutional Service, 
U.S. Department of Education, 400 Maryland Avenue SW, room 250-50, 
Washington, DC 20202. Telephone: (202)453-7530. Email: 
[email protected].
    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.
    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

[[Page 68435]]

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.
    The National Center for Education Statistics (NCES) calculates Core 
Expenses per FTE of 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 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 is calculated using the same methodology as Core Expenses per 
FTE. Accordingly, the Department will apply the NCES methodology for 
calculating Core Expenses per FTE. Institutions requesting an 
eligibility exemption determination must use the Core Expenses per FTE 
data reported to NCES' Integrated Postsecondary Education Data System 
(IPEDS) for the most currently available academic year, in this case 
academic year 2017-2018.

SUPPLEMENTARY INFORMATION: 

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 similar names as other programs that 
are authorized 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 are eligible to 
apply for grants if they meet specific statutory and regulatory 
eligibility requirements. An institution of higher education that 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 Grant (FSEOG) program 
authorized by title IV, part A of the HEA and the Federal Work-Study 
(FWS) program authorized by section 443 of the HEA. Qualified 
(eligible) institutions may receive the FSEOG and FWS waivers for one 
year even if they do not receive a grant under a title III or V grant 
program. 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 cost 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 cost 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 the Core Expenses per 
FTE student count for a specified base year. The most recent data 
available in IPEDS for Core Expenses per FTE are for base year 2017-
2018. In order to award FY 2020 grants in a timely manner, we will use 
these data to evaluate eligibility.
    Accordingly, each institution interested in either applying for a 
new grant under the titles III or V programs addressed in this notice, 
or requesting a waiver of the non-Federal cost share, must be 
designated as an eligible institution in FY 2020. Under the HEA, any 
institution 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 34 CFR 607.2 through 607.5. The 
regulations may be accessed at www.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.607&rgn=div5. 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). There are currently no specific regulations for these programs.
    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.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.606&rgn=div5l.
    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.
    The Department has instituted a process known as the Eligibility 
Matrix (EM), under which we will use information submitted by 
institutions to IPEDS to determine which institutions meet the basic 
eligibility requirements for the programs authorized by titles III or V 
of the HEA listed above. We will use enrollment and fiscal data for the 
2017-2018 year submitted by institutions to IPEDS to make eligibility 
determinations for FY 2020. Beginning December 16, 2019, an institution 
will be able to review the Department's decision on whether it is 
eligible for the grant programs authorized by title III or V of the HEA 
through this process by checking the institution's eligibility in the 
eligibility system linked through the Department's Institutional 
Service Eligibility website: http://www2.ed.gov/about/offices/list/ope/idues/eligibility.html.
    Please note that through this process, the Department does not 
certify, nor designate, an institution as a Historically Black College 
or University, Tribally Controlled College or University, Minority-
Serving Institution, or Hispanic-Serving Institution. The Department's 
determination that an institution is eligible is solely for the purpose 
of the institution's ability to apply for and receive grants under 
certain programs as discussed in this notice.
    The EM is part of the Department's eligibility data system. The EM 
is a read-only worksheet that lists all potentially eligible 
postsecondary institutions, as determined by the Department using the 
data described above. If the entry for your institution in the EM shows 
that your institution is eligible to apply for a grant for a particular 
program, and you plan to submit an application for a grant in that 
program, you will not need to apply for eligibility or for a waiver 
through the process described in this notice. Rather, you may print out 
the eligibility letter directly. However, if the EM does not show that 
your institution is eligible for a program in which you plan to apply

[[Page 68436]]

for a grant, you must submit an application as discussed in this notice 
before the January 31, 2020 deadline.
    To check your institution's eligibility in the EM, go to https://HEPIS.ed.gov, and log into the system using your email address and 
password. If you are not sure whether you have an account in the 
system, click the ``New User'' button. If you have an account, it will 
walk you through setup. Note that it may take up to five business days 
to verify user identity and to complete new account setup, so please 
allow yourself enough time to complete the application. If the Grant 
Eligibility Application (GEA) system is open, click the link on your 
dashboard to check your institution's eligibility status by clicking 
the ``View pre-Eligibility Information'' button. Your institution's 
eligibility information will display.
    If the EM does not show that your institution is eligible for a 
program, or if your institution does not appear in the eligibility 
system, or if you disagree with the eligibility determination reflected 
in the eligibility system, you can apply for a waiver or 
reconsideration through the process described in this notice. The 
application process is similar to previous years; you will choose the 
waiver option on the website at https://HEPIS.ed.gov/ and submit your 
institution's application.
    Enrollment of Needy Students: For title III and V programs 
(excluding the PBI programs), an institution is considered to have an 
enrollment of needy students if: (1) At least 50 percent of its degree-
seeking 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-seeking students who were 
enrolled on at least a half-time basis and received Federal Pell Grants 
exceeded the average 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 criterion 2, an institution's Federal Pell Grant 
percentage for base year 2017-2018 must be more than the average for 
its category of comparable institutions provided in the 2017-2018 
Average Pell Grant and Core Expenses per FTE Student table in this 
notice. If your institution qualifies under the first criterion, under 
which at least 50 percent of its degree-seeking students received 
financial assistance under one of several Federal student aid programs 
(the Federal Pell Grant, FSEOG, FWS, or the Federal Perkins Loan 
programs), but not the second criterion, under which an institution's 
Federal Pell Grant percentage for base year 2017-2018 must be more than 
the average for its category of comparable institutions provided in the 
2017-2018 Average Pell Grant and Core Expenses per FTE student table in 
this notice, you must submit an application including the requested 
data, which is not available in IPEDS.
    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; Title V, Part A HSI; and Title V, Part B PPOHA programs, 
an institution should compare its base year 2017-2018 Core Expenses per 
FTE student to the average Core Expenses per FTE student for its 
category of comparable institutions in the base year 2017-2018 Average 
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 2017-2018 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) requirements 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 non-operating 
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. Do not include 
Federal student financial aid. For both FASB and GASB institutions, 
Core Expenses do not include expenses for auxiliary enterprises (e.g., 
bookstores, dormitories), hospitals, and independent operations.
    The following table identifies the relevant average Federal Pell 
Grant percentages for the base year 2017-2018 and the relevant Core 
Expenses per FTE student for the base year 2017-2018 for the four 
categories of comparable institutions:

------------------------------------------------------------------------
                                          Base year 2017- Base Year 2017-
                                           2018 average    2018 average
           Type of institution              Pell Grant     core expenses
                                            percentage        per FTE
                                                              student
------------------------------------------------------------------------
Two-year Public Institutions............              26         $14,194
Two-year Non-profit Private Institutions              55          15,960
Four-year Public Institutions...........              37          31,578
Four-year Non-profit Private                          39          40,752
 Institutions...........................
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    Waiver Information: Institutions that do not meet the needy student 
enrollment requirement or the Core Expenses per FTE requirement may 
apply to the Secretary for a waiver 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).
    Institutions requesting a waiver of the needy student enrollment 
requirement or the Core Expenses per FTE requirement must include in 
their application detailed evidence supporting the waiver request, as 
described in the instructions for completing the application.

[[Page 68437]]

    The regulations governing the Secretary's authority to grant a 
waiver of 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 (at 150 percent) for various sizes of 
families:

                                          2018 Annual Low-Income Levels
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                                                                   Family income
                                                                    for the 48
                                                                    contiguous     Family income   Family income
                       Size of family unit                          states, DC,     for Alaska      for Hawaii
                                                                   and outlying
                                                                   jurisdictions
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1...............................................................         $18,210         $22,770         $20,940
2...............................................................          24,690          30,870          28,395
3...............................................................          31,170          38,970          35,850
4...............................................................          37,650          47,070          43,305
5...............................................................          44,130          55,170          50,760
6...............................................................          50,610          63,270          58,215
7...............................................................          57,090          71,370          65,670
8...............................................................          63,570          79,470          73,125
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    Note: We use the 2018 annual low-income levels because those are 
the amounts that apply to the family income reported by students 
enrolled for the fall 2017 semester. For family units with more than 
eight members, add the following amount for each additional family 
member: $6,480 for the contiguous 48 States, the District of 
Columbia, and outlying jurisdictions; $8,100 for Alaska; and $7,455 
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 on January 18, 2018, in the Federal Register by the U.S. 
Department of Health and Human Services (83 FR 2642).
    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 Waiver Applications: If your institution 
does not appear in the eligibility system as one that is eligible for 
the program under which you plan to apply for a grant, you must submit 
an application for a waiver of the eligibility requirements. To request 
a waiver, you must upload a narrative at: https://HEPIS.ED.gov.
    Exception to the Electronic Submission Requirement: We discourage 
paper applications, but if electronic submission is not possible (e.g., 
you do not have access to the internet), you must provide a written 
statement that you intend to submit a paper application. Send this 
written statement no later than two weeks before the application 
deadline date (14 calendar days or, if the 14th calendar day before the 
application deadline date falls on a Federal holiday, the next business 
day following the Federal holiday).
    If you mail your written statement to the Department, it must be 
postmarked no later than two weeks before the application deadline 
date. Please send this statement to the person listed in the FOR 
FURTHER INFORMATION CONTACT section of this notice.
    If you submit a paper application, you must mail your application, 
on or before the application deadline date, to the Department at the 
following address: U.S. Department of Education, Attention: Jason 
Cottrell, Ph.D., 400 Maryland Avenue SW, Washington, DC 20202.
    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.
    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.
    We will not consider applications postmarked after the application 
deadline date.
    Applicable Regulations: (a) The Education Department General 
Administrative Regulations (EDGAR) in 34 CFR parts 75, 77, 79, 82, 84, 
86, 97, 98, and 99. (b) The Office of Management and Budget Guidelines 
to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) 
in 2 CFR 180, as adopted and amended as regulations of the Department 
in 2 CFR part 3485. (c) The Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards in 2 CFR part 
200, as adopted and amended as regulations of the Department in 2 CFR 
part 3474. (d) The regulations for certain title III programs in 34 CFR 
part 607, and for the HSI program in 34 CFR part 606. (e) The notice of 
final requirements for the PPOHA program, published in the Federal 
Register on July 27, 2010 (75 FR 44055).
    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 only.

    Note: There are no program-specific regulations for the Part A 
AANAPISI, Part A NASNTI, and Part A PBI programs or any of the title 
III, part F 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

[[Page 68438]]

understand the eligibility requirements for the program for which 
they are applying.

II. Other Information

    Accessible Format: Individuals with disabilities can obtain this 
document and a copy of the application in an accessible format (e.g., 
braille, large print, audio tape, or compact disc) on request to one of 
the contact persons listed under FOR FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. 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 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: December 11, 2019.
Robert L. King,
Assistant Secretary for the Office of Postsecondary Education.
[FR Doc. 2019-27048 Filed 12-13-19; 8:45 am]
 BILLING CODE 4000-01-P