mesters, three quarters, or 900 clock hours of instruction.

(b) "Act" means Title IV-Part A Subpart 2 of the Higher Education Act of 1965, as amended.

(c) "Clock hour" means a period of time which is the equivalent of a 50 to 60 minute class, lecture or recitation or a 50 to 60 minute faculty supervised laboratory, shop training, or internship.

(d) "College Work-Study Program" is a federally-supported program of parttime employment authorized by Title IV, Part C, of the Higher Education Act of 1965.

(42 U.S.C. 2751-2756)

an

(e) "Continuing grant" means award of a Supplemental Educational Opportunity Grant (Supplemental Grant) to a student that does not qualify as an "initial grant" as defined in § 176.2.

(f) "Dependent student" is one who does not qualify as a "self-supporting or independent student" as defined in § 176.2.

(g) "Expected family contribution of a dependent student" means the sum of the amounts which reasonably may be expected from the student and his spouse to meet the student's cost of education as described in § 176.11 and the amount which reasonably may be expected to be made available to him by his parents for such purpose.

(h) "Expected family contribution of an independent or self-supporting student" means the amount which reasonably may be expected from the student and his spouse to meet the student's cost of education § 176.11.

as described in

(1) "Full-time student" means a student who is pursuing any combination of courses, research, or special studies (whether or not for credit) which, according to the standards and practices of the institution in which the student is enrolled, is considered full-time study. (20 U.S.C. 1088 (c) (2))

(j) "Good standing" means the eligibility of a student to continue in attendance in accordance with the standards and practices of the institution in which he is enrolled.

(k) "Half-time student" means a stuIdent who is carrying a half-time academic work load measured in terms of (1) the tuition and fees customarily charged for half-time study by the institution and (2) the course work or other

required activities as determined by the institution in which the student is enrolled; provided, however, That such course work and activities amount to the equivalent of a minimum of (i) 6 semester hours or 6 quarter hours per academic term for institutions utilizing semester, trimester, or quarter hour systems; (ii) 12 semester hours or 18 quarter hours per academic year for institutions which measure progress in terms of credit hours but which do not utilize semester, trimester, or quarter systems; or (iii) 12 clock hours per week for institutions which utilize clock hours to measure progress. All students engaged in a program of study by correspondence which is offered as requiring at least 12 hours of preparation a week shall be considered half-time students for purposes of this part.

(20 U.S.C. 1088 (c) (2))

(1) "Initial grant" means the first Supplemental Educational Opportunity Grant (Supplemental Grant) awarded to a student. Payment for the first year of a Supplemental Grant shall not be considered to be an initial grant payment if the grant was awarded for the continuing education of a student who (1) had been previously awarded a Supplemental Grant (whether or not by another institution), and (2) had received any payment of that Supplemental Grant.

(m) "Institution of higher education" means an educational institution in any State which (1) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, (2) is legally authorized within such State to provide a program of education beyond secondary education, (3) provides an educational program for which it awards a bachelor's degree or provides not less than a two-year program which is acceptable for full credit toward such a degree, (4) is a public or other nonprofit institution, and (5) (i) is accredited by a nationally recognized accrediting agency or association, or (ii) in the case of a public institution offering postsecondary vocational education, is approved by a State approval agency recognized by the Commissioner as a reliable authority as to the quality of public postsecondary Vocational education in that State, or (iii) is an institution with respect to which the Commissioner has determined

that there is satisfactory assurance, considering the resources available to the institution, the period of time, if any, during which it has operated, the effort it is making to meet accreditation standards, and the purpose for which this determination is being made, that the institution will meet the accreditation standards of such an agency or association within a reasonable time, or (iv) is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited.

Such term also includes any school which provides not less than a oneyear program of training to prepare students for gainful employment in a recognized occupation and which meets the provisions of paragraph (m) (1), (2), (4), and (5) of this section. Such term also includes any proprietary institution of higher education, as defined in § 176.2(q), which has an agreement with the Commissioner containing such terms and conditions as the Commissioner determines to be necessary to insure that the availability of assistance to students at the school under this part has not resulted, and will not result, in an increase in the tuition, fees, or other charges to such students.

(20 U.S.C. 1087-1(b), 1088(b) and 1141(a))

(n) "National Direct Student Loan Program" is the student loan program authorized by Title IV, Part E of the Higher Education Act of 1965.

(p) "Parent" means the mother or father of the student, unless any other person, except the student's spouse, provides more than one-half of the student's support and claims or is eligible to claim the student as an exemption for Federal income tax purposes, in which case such person shall be considered a parent.

(q) "Proprietary institution of higher education" means a school (1) which provides not less than a six-month program of training to prepare students for gainful employment in a recognized occupation, (2) which admits as regular

students only persons having a certiflcate of graduation from a school providing secondary education or the recognized equivalent of such a certificate, (3) which is legally authorized by the State in which it is located to provide a program of education beyond secondary education, (4) which is accredited by a nationally recognized accrediting agency or association approved by the Commissioner for this purpose, (5) which is not a public or other nonprofit institution, and (6) which has been in existence for at least two years.

(20 U.S.C. 1088 (b) (3))

(r) "Self-supporting or Independent Student" means a student who:

(1) Has not and will not be claimed as an exemption for Federal income tax purposes by any person except his or her spouse for the calendar year(s) in which aid is received and the calendar year prior to the academic year for which aid is requested,

(2) Has not received and will not receive financial assistance of more than $600 from his or her parent(s) in the calendar year(s) in which aid is received and the calendar year prior to the academic year for which aid is requested, and

(3) Has not lived or will not live for more than 2 consecutive weeks in the home of a parent during the calendar year in which aid is received and the calendar year prior to the academic year for which aid is requested.

For purposes of this paragraph, a student will not be considered to have been claimed as an exemption by a parent, or to have received $600 from a parent, or to have lived with a parent if that parent has died prior to the student's submission of an application for a grant.

(s) "State" means, in addition to the several States of the Union, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands.

(20 U.S.C. 1141 (b); 20 U.S.C. 1088 (a))

(t) "Undergraduate course of study" means a regularly prescribed curriculum for an undergraduate student at an institution of higher education.

(u) "Undergraduate student" means a student who (1) is in attendance at an institution of higher education and (2) has not earned his first baccalaureate or professional degree. A student who has

(a) Initial grant-apportionment. (1) From 90 percent of the sums appropriated for making initial grants for the Supplemental Educational Opportunity Grant Program (Supplemental Grant Program) for any fiscal year, the Commissioner will apportion to each State an amount which bears the same ratio to such sums as the number of persons enrolled full time and the full-time equivalent of the number of persons enrolled part time in institutions of higher education in such State bears to the total number of such persons enrolled in all the States. If the amount so apportioned to any State is less than its allotment for initial year Educational Opportunity Grant Program grants (20 U.S.C. 1061 (b)) for fiscal year 1972, additional sums will be apportioned to each such State from the remaining 10 percent of the sums appropriated for initial grants to make its apportionment for such year equal to such allotment for fiscal year 1972. (The table set forth as appendix A indicates the amounts allotted to each State for such purposes for the fiscal year ending June 30, 1972.) In the event that the funds available are insufficient to meet that level, the Commissioner will instead apportion the remaining 10 percent of the sums appropriated for initial grants so that no State will receive less than a uniform minimum percentage of its fiscal year 1972 allotment.

(2) The Commissioner will apportion the sums remaining for initial grants, after making the apportionments of funds specified in paragraph (a)(1) of this section, to those State(s) which received the lowest percentage of approved requests for funds for initial grants as a result of the apportionment under subparagraph (a) (1) of this section, so that no State will receive less than a uniform minimum percentage of its total

approved requests for funds for initial grants.

(b) Initial grants-reapportionment. The amount of any State's apportionment under subsection (a) which exceeds the total amount of approved requests for funds for initial grants of the institutions of higher education in that State will be reapportioned among the remaining States in such a manner that no State will receive less than a uniform minimum percentage of its total approved requests for funds for initial grants.

(c) Continuing grants-apportionment. The Commissioner will apportion the sums appropriated for continuing grants for the Supplemental Grant program among the States in such a manner so that each State will receive the same percentage of the total of its approved requests for funds for continuing grants.

(d) Continuing grants-reapportionment. Any funds apportioned under paragraph (c) of this section which are later determined by the Commissioner to be in excess of the total amount required by any State for continuing grants will be reapportioned among the remaining States in such a manner as the Commissioner, pursuant to published criteria, determines will best achieve the purpose of the program.

(20 U.S.C. 1070b-3)

(b) Reallocation of funds. Funds allocated to an institution for initial grants which the institution anticipates will not be used by the end of the period for which such funds were made available may be reallocated on an equitable basis to other institutions in that State or, if no institution in that State has a need for such funds, such funds may be reapportioned in accordance with § 176.3 for use in other States. Similarly funds allocated to an institution for continuing grants which the institution anticipates will not be used by the end of the period for which such funds were made available may be reallocated on an equitable basis to other institutions in that State or, if no institution in that State has a need for such funds, such funds may be reapportioned in accordance with § 176.3 for use in other States.

(c) Payment of funds. Funds will be made available for both initial and continuing grants for a specific period of time as determined by the Commissioner and may be payable in advance or by way of reimbursement on the basis of substantiated need and periodic fiscal reports submitted by the institution. (20 U.S.C. 1070b-3)

[39 FR 37385, Oct. 21, 1974, as amended at 39 FR 37987, Oct. 25, 1974]

§ 176.5 Institutional applications.

(a) An institution that wishes to participate in the Supplemental Grants Program shall file an application with the Commissioner before the closing date for such applications established annually by the Commissioner. Such application shall contain the following information and contain such other information as the Commissioner may from time to time prescribe:

(1) The institution's requests for Federal student financial aid funds under this part, the College Work-Study Program and the National Direct Student Loan Program;

(2) The institution's anticipated enrollment for the forthcoming academic year;

(3) The anticipated number of enrolled students eligible for initial and continuing grants;

(4) The institution's average cost of attendance;

(5) An estimate of the average amount which reasonably may be expected to be made available by their parents to students at the institution

who are expected to be eligible for such grants;

(6) The anticipated average grants;

(7) The amount of financial assistance awarded by the institution from its own scholarship and student aid programs for the most recent academic year for which information is available; and

(8) The qualifications of the professional personnel who will be administering the Supplemental Grants Program.

(b) The application shall contain the name of the official authorized to submit the application and the name of the individual or official who will be responsible for carrying out the program. Unless otherwise indicated in the application, the former individual or official will be deemed to be the individual or official to whom communications shall be directed, the individual or official who shall be responsible for the receipt, custody, and disbursement of Federal funds, and the individual or official who shall have ultimate responsibility for the accounting of such Federal funds. (20 U.S.C. 1070b-3(b))

§ 176.6

Funding criteria. Institutional

for

(a) applications funds under this part will be reviewed in accordance with the following criteria:

(1) The reasonableness of the institution's total request for Federal student financial aid funds under this part (1) in light of its requests under the College Work-Study Program and the National Direct Student Loan Program, and (ii) in relation to the institution's anticipated enrollment, the average cost of education, and the average expected family contribution of students eligible under those programs;

(2) the reasonableness of the institution's projections of its anticipated enrollment and of the average cost of education and the average expected family contribution of students eligible under those programs;

(3) the reasonableness of the articipated number of students eligible for initial and continuing grants, in view of the institution's anticipated enrollment;

(4) the reasonableness of the amount of the average grant anticipated in relation to the average need per student at the institution, after taking into account other available student financial aid resources;

(5) the extent to which the institution has effectively utilized Federal financial aid funds allocated in previous years;