[Federal Register Volume 86, Number 239 (Thursday, December 16, 2021)]
[Notices]
[Pages 71470-71474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27212]


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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).

[[Page 71471]]


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) 2022 for the programs 
under the Higher Education Act of 1965, as amended (HEA), listed in 
Supplementary Information.

DATES: 
    Applications Available: December 16, 2021.
    Deadline for Transmittal of Applications: January 21, 2022.

FOR FURTHER INFORMATION CONTACT: Christopher Smith, Institutional 
Service, U.S. Department of Education, 400 Maryland Avenue SW, Room 
2B108, Washington, DC 20202. Telephone: (202) 453-7946 or (202) 262-
7141. Email: [email protected]; or Jason Cottrell, Ph.D., 
Institutional Service, U.S. Department of Education, 400 Maryland 
Avenue SW, Room 2B127, Washington, DC 20202. Telephone: (202) 453-7530 
or (202) 262-1833. 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.

SUPPLEMENTARY INFORMATION: The Department announces the process for 
designation of eligible institutions and invites applications for 
waivers of eligibility requirements for FY 2022 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).
    3. Programs authorized under title V of the HEA: Developing 
Hispanic-Serving Institutions (HSI) and Promoting Postbaccalaureate 
Opportunities for Hispanic Americans (PPOHA).

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 Part F HSI STEM and Articulation, Part F PBI, 
Part F ANNH, Part F NASNTI, and Part F AANAPISI programs are authorized 
under title III, part F of the HEA. The HSI and PPOHA programs are 
authorized under title V of the HEA. Please note that certain programs 
addressed 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.
    Sections 312 and 502 of the HEA, 34 CFR 607.2-607.5, and 34 CFR 
606.2-606.5 include most of the basic eligibility requirements for 
grant programs authorized under titles III and V of the HEA. Sections 
312(b)(1)(B) and 502(a)(2)(A) of the HEA provide 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.
    The National Center for Education Statistics (NCES) calculates Core 
Expenses per FTE of institutions, a statistic like 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 sections 312(b)(1)(B) and 
502(a)(2)(A) 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 2019-2020.
    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 2019-
2020. To award FY 2022 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 title 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 2022. Under the HEA, any 
institution interested in applying for a grant under any of these 
programs must first be designated as an eligible institution. See 34 
CFR 606.5 and 607.5.
    Note: Please be advised that final eligibility is program specific. 
Applicants should refer to the program in question for programmatic 
requirements. Further information regarding eligibility is set forth 
below.
    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-
607.5. The

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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 606.2-606.5. 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 606.3-606.5.
    The Department has instituted a process known as the Eligibility 
Matrix (EM), under which we use information institutions submitted to 
IPEDS to determine which institutions meet the basic eligibility 
requirements for the programs authorized by title III or V of the HEA 
listed above. To make eligibility determinations for FY 2022, we use an 
institution's 2019-2020 enrollment and fiscal data. Beginning December 
16, 2021, an institution will be able to review the Department's EM 
eligibility decision by checking the eligibility system linked through 
the Department's Institutional Service Eligibility website: http://www2.ed.gov/about/offices/list/ope/idues/eligibility.html. The direct 
link is https://HEPIS.ed.gov/.
    The EM is a read-only worksheet that lists all potentially eligible 
postsecondary institutions. If the EM entry for your institution 
indicates your institution is eligible for a particular program grant, 
you will not need to apply for eligibility or submit a waiver request 
as described in this notice. Rather, if you choose to apply for the 
grant, you may print out the eligibility letter directly. If your 
institution intends to apply for a program grant for which your EM 
entry does not show your institution is eligible, you must submit the 
application discussed in this notice before the application deadline of 
January 21, 2022.
    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, the 
system 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 enough time to complete the application. If the 
Grant Eligibility Application (GEA) system is open for new 
applications, you may 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 using the process described in this notice. The 
application process mirrors that used in previous years: Choose the 
waiver option on the website at https://HEPIS.ed.gov/ and submit your 
institution's application.
    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 
EM eligibility determination that an institution is eligible solely 
relates to the institution's ability to apply for and receive grants 
under certain programs as discussed in this notice.
    Note: Institutions that submit a waiver request for either the Core 
Expenses per FTE or the Needy Student requirement must submit the 
required documents and supporting data and evidence by the deadline. 
All reviews and decisions will be made approximately two weeks after 
the deadline.
    Enrollment of Needy Students: As noted above, to qualify as an 
eligible institution under the grant programs listed in this notice, 
your institution must satisfy several criteria, including those that 
relate to the enrollment of needy students and to the Core Expenses per 
FTE student count for a specified base year.
    As to the enrollment of needy students, for programs under titles 
III and V (excluding the PBI programs), an institution is considered to 
have an enrollment of needy students if it meets either of the 
following two criteria: (1) At least 50 percent of its degree-seeking 
students received financial assistance under the Federal Pell Grant, 
FSEOG, or FWS 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 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 the second criterion, an institution's Federal 
Pell Grant percentage for base year 2019-2020 must be more than the 
median for its category of comparable institutions provided in the 
2019-2020 Median Pell Grant and Average Core Expenses per FTE Student 
Table in this notice. If your institution qualifies only under the 
first criterion, you must submit an application containing the data 
necessary to satisfy the first criterion (showing at least 50 percent 
of your degree-seeking students received financial assistance under one 
of several Federal student aid programs (the Federal Pell Grant, FSEOG, 
or FWS programs)), since these data are not available in IPEDS.
    ``Enrollment of Needy Students'' for purposes of the Part A PBI 
program is separately defined in section 318(b)(2) of the HEA, and for 
purposes of the Part F PBI program is defined in section 371(c)(3) of 
the HEA.
    Core Expenses per FTE Student: For each of the following programs, 
an institution should compare its base year 2019-2020 Core Expenses per 
FTE student to the average Core Expenses per FTE student for its 
category of comparable institutions using the 2019-2020 Median Pell 
Grant and Average Core Expenses per FTE Student Table in this notice: 
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 ANNH; Part F NASNTI; Part F AANAPISI; Title V, Part A HSI; and Title 
V, Part B PPOHA. An institution satisfies this program eligibility 
requirement if its Core Expenses for the 2019-2020 base year are less 
than the average Core Expenses of its comparable institutional 
category.
    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 institutions)

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include expenses for instruction, research, public service, academic 
support, student services, institutional support, net grant aid to 
students, and other expenses. Core Expenses do not include Federal 
student aid for the purposes of eligibility. 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 base year 2019-2020 median Federal 
Pell Grant percentages and average Core Expenses per FTE student for 
the four categories of comparable institutions:

------------------------------------------------------------------------
                                          Base year 2019- Base year 2019-
                                            2020 median    2020 average
           Type of institution              pell grant     core expenses
                                            percentage        per FTE
                                                              student
------------------------------------------------------------------------
Two-year Public Institutions............              32         $15,641
Two-year Non-profit Private Institutions              54          18,412
Four-year Public Institutions...........              35          34,275
Four-year Non-profit Private                          35          42,922
 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 in 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.
    The regulations governing the Secretary's authority to grant a 
waiver of the needy student requirement refer to ``low-income'' 
students or families, at 34 CFR 606.3(b)(2) and (3) and 607.3(b)(2) and 
(3). 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 purposes of this waiver provision, the following table sets 
forth the low-income levels (at 150 percent) for various family sizes:

                                          2020 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...............................................................         $19,140         $23,925         $22,020
2...............................................................          25,860          32,325          29,745
3...............................................................          32,580          30,725          37,470
4...............................................................          39,300          49,125          45,195
5...............................................................          46,020          57,525          52,920
6...............................................................          52,740          65,925          60,645
7...............................................................          59,460          74,325          68,370
8...............................................................          66,180          82,725          76,095
----------------------------------------------------------------------------------------------------------------

    Note: We use the 2020 annual low-income levels because those are 
the amounts that apply to the family income reported by students 
enrolled for the fall 2019 semester. For family units with more than 
eight members, add the following amount for each additional family 
member: $6,720 for the contiguous 48 States, the District of Columbia, 
and outlying jurisdictions; $8,400 for Alaska; and $7,725 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 17, 2020, in the Federal Register by the U.S. 
Department of Health and Human Services (85 FR 3060), with an effective 
date of January 14, 2020.
    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 eligible for a program to 
which you seek to apply, you must apply 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. This written 
statement must be postmarked 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).
    Please send this statement to one of the persons 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

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Department at the following address: U.S. Department of Education, 
Attention: Jason Cottrell, 400 Maryland Avenue SW, Room 2B127, 
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 of 
higher education only.
    Note: There are no program-specific regulations for the Part A PBI, 
Part A NASNTI, and Part A AANAPISI programs or any of the title III, 
part F programs. Also, the HEA has been amended since the Department 
last issued regulations for programs established under titles III and V 
of that statute. Accordingly, we encourage each potential applicant to 
read applicable sections of the HEA to fully understand all applicable 
program eligibility requirements.

II. Other Information

    Accessible Format: On request to one of the program contact persons 
listed under FOR FURTHER INFORMATION CONTACT, individuals with 
disabilities can obtain this document and a copy of the application 
package in an accessible format. The Department will provide the 
requestor with an accessible format that may include Rich Text Format 
(RTF) or text format (txt), a thumb drive, an MP3 file, braille, large 
print, audiotape, or compact disc, or other accessible format.
    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.

Annmarie Weisman,
Deputy Assistant Secretary for Policy, Planning and Innovation, Office 
of Postsecondary Education.
[FR Doc. 2021-27212 Filed 12-15-21; 8:45 am]
BILLING CODE 4000-01-P