PART

(a) Nature. After fiscal year 1959, the Federal Government will pay from each State's allotment, as reduced by expenditures required pursuant to section 504 (b) of the Act, one-half of the total sum expended under the approved State plan: (1) By the State and local educational agencies in the establishment, maintenance, or extension of guidance, counseling, or testing programs approved under the State plan; and (2) for State agency supervision and related services with respect to such programs. There can be no Federal financial participation in the payment of obligations incurred or in expenditures made by local educational agencies for local guidance and counseling programs if the programs have not first been approved by the State agency under an approved plan.

ment suitable for use for teaching in such fields of education, which can be identified as originating in or having been exported from a Communist country, unless such equipment is unavailable from any other source. This prohibition applies to expenditures with respect to which Federal participation is requested from allotments made for fiscal years 1960, 1961, and 1962 under section 502 or section 1008 of the Act.

CODIFICATION: § 143.12 was revised, 25 F.R. 3258, Apr. 15, 1960. Subsequently, paragraph (b) was amended, 25 F.R. 9851, Oct. 14, 1960, and further amended as set forth above, 27 F.R. 1555, Feb. 20, 1962.

Subpart D-Federal Payment Procedures

§ 145.1

Definitions.

As used in this part:

(a) "Act" means the National Defense Education Act of 1958, Public Law 85-864, as amended, 72 Stat. 1580, 20 U.S.C. 401-589.

(b) "Title IV" means title IV of such Act.

(c) "Institution of higher education" or "institution" means an educational institution in any State which meets the requirements set forth in section 103(b) of the Act. The term "educational institution" limits the scope of this definition to establishments at which teaching is conducted and which have an identity of their own. The separate identity of such establishments is generally reflected by their being incorporated or chartered for such purposes in their own right, or by their receiving a separate listing in part III of the Office of Education "Education Directory."

(d) "Public" as applied to any institution does not include an institution of any agency of the United States.

(e) "Nonprofit" as applied to any institution means an institution owned and operated by one or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

(f) "State" means a State, Puerto Rico, the District of Columbia, the Canal Zone, Guam, or the Virgin Islands.

(g) "Fellowship" means an award by the Commissioner under Title IV. A "Fellowship holder" or "Fellow" means a person designated to receive the award, which entitles him to receive the stipend.

(h) "Approved program" means a program of graduate study approved as provided in § 145.3.

(i) "Commissioner" means the U.S. Commissioner of Education, Department of Health, Education, and Welfare or his delegate.

(j) "Stipend" means the payments made to a Fellow in accordance with section 404 (a) of the Act (1) for each academic year of his study in an approved program and (2) on account of each of his dependents.

(k) "Academic year" consists of not less than two semesters or three quarters, beginning in the fall of the year, and falling within a single twelve month period.

§ 145.2 Summary of program.

(a) Purpose. The National Defense Graduate Fellowship Program has the objectives of increasing the facilities available for the graduate training of college or university level teachers, of promoting a wider geographical distribution of such facilities throughout the United States, and of assisting persons interested in teaching in institutions of higher education to obtain the Ph.D. or similar degree.

(b) Fellowship awards. The Commissioner is authorized to award up to one thousand Fellowships during the fiscal year ending June 30, 1959, and fifteen hundred Fellowships during each of the three succeeding fiscal years. A Fellowship will usually be awarded for three academic years; but in any case will not be for more than three academic years.

(c) Payments to fellows and institutions of higher education. Stipends to Fellows will be paid in accordance with $145.7. In addition, to the extent permitted by § 145.4, the Commissioner shall make payments to institutions to cover that portion of the cost of an approved graduate program which is reasonably attributable to each Fellow.

(d) Approval of programs and allotment of fellowships. The Commissioner will approve graduate programs at institutions in accordance with § 145.3, and will determine the number of fellowships to be allotted to each such program. Public announcement will be made listing the approved programs and the institutions at which they are to be offered. An individual desiring a Fellowship should apply for acceptance as described in sec

tion 145.6 at the institution of his choice from among those listed.

§ 145.3 Approval of graduate programs. (a) Minimum requirements for approval of programs. The programs to be approved will be selected from those:

(1) For the completion of which a Ph. D. or similar degree is awarded;

(2) Which constitute a new or expanded program of graduate study;

(3) Which substantially further the objective of increasing the facilities available in the Nation for the graduate training of college or university level teachers;

(4) Which promote a wider geographical distribution of facilities for the graduate training of college or university level teachers throughout the Nation; and

(5) In which a preference in the acceptance of persons for study is given to persons interested in teaching in institutions of higher education.

(b) Applications. Approval of graduate programs shall be on the basis of applications submitted by institutions of higher education in accordance with procedures established by the Commissioner. Applications shall contain information as to the proposed increase in facilities and/or faculty for the establishment of the new program or expansion of an existing program and shall indicate the total increase in enrollment (or total enrollment in the case of a new program) which the increase in facilities and/or faculty will enable the program to accommodate. The proposed development of the program should normally be such as to make possible the admission of sufficient first-year students each year to achieve the total anticipated increase in enrollment (or total anticipated enrollment in the case of a new program) within three years.

(c) Organization of programs. Programs may be organized by an institution in any manner appropriate to the field of study of the program, including but not restricted to: departmental, e.g., Political Science; a special field within a department, e.g. Political Theory; interdepartmental, eg. Psychology and Politics; or intercollege, e.g. Law and Politics.

(d) Joint institutional sponsorship. Two or more institutions may jointly submit a program for approval. The

application must be signed by an authorized representative of each institution, and it must be agreed that credits earned at each of the institutions are fully transferable to the other.

(e) Dates for applying. Each year a date will be announced for the submission of applications by institutions for the approval of a new or expanded program to accommodate those who will be awarded Fellowships in the ensuing period. Institutions of higher education may secure forms for application from Division of Higher Education, Office of Education, Department of Health, Education, and Welfare, Washington 25, D.C.

(f) Criteria for the selection of approved programs. The following criteria will be considered in determining which of the programs meeting the foregoing requirements are to be approved:

(1) The prospective ability of the applying institution, in terms of faculty, libraries, and equipment, competently to offer the program;

(2) Current or prospective national or regional shortage of college or university teachers in the proposed field;

(3) Current or prospective national or regional inadequacies in the offering of proposed subjects;

(4) Adequate ratio, at the applying institution, between the number of graduate faculty and the proposed number of graduate students;

(5) The amount and extent of the applying institution's previous planning and development in the field proposed in the program;

(6) Likelihood that the applying institution will be able soundly to support the proposed program on a long-term basis;

(7) Likelihood that the proposed program will produce teachers for institutions of higher education.

(g) Notification of Commissioner's action. The Commissioner will notify each institution of higher education, which has applied for approval of a graduate program whether such approval has been given, and if so, the number of Fellowships which the Commissioner is prepared to allot for such program.

(h) Effect of approval. Approval of a program is effective during any period in which a Fellowship holder is enrolled in the program, unless approval is withdrawn, as provided in paragraph (j) of

this section. Continued approval of a program does not necessarily mean, however, that new Fellowships will be awarded to students enrolling in the program in any given year.

(i) Number of fellowships to be allotted. In determining the number of Fellowships to be allotted to an Approved Program the Commissioner will take into account the total increase in enrollment (or total enrollment in the case of a new program) anticipated at the end of the three year period of development of the Program. For the first year the Commissioner will allot that number of Fellowships that best facilitates the planned expansion of enrollment. New Fellowships may be allotted to provide for students enrolling in the program thereafter. After the first year in which Fellowships are allotted, however, the institution will be expected to assume increasing responsibility for the support of the continued increase in enrollment in the program. In the event of changed conditions, the Commissioner reserves the right to change the number of Fellowships allotted for any approved

Institutions entitled to payments under section 145.4 shall keep accessible and intact all records necessary to support claims for such payments: (a) For three years after the close of the fiscal year to which such records relate; or (b) until they are notified that such records are not needed for program administration review; or (c) until they are notified of the completion of the Department's fiscal audit, whichever is later. The records involved in any claims which have been questioned shall be further maintained until necessary adjustments have been made and the adjustments have been reviewed and cleared by the Department.

(a) Applications. An individual shall submit his application for a Fellowship through the institution operating the Approved Program in which he wishes to study.

(b) Nominations. From among those accepted for study in an Approved Program, the institution shall make nominations to the Commissioner. The institution shall give preference to those interested in becoming teachers in institutions of higher education. Wherever possible the institution should nominate alternates in addition to the regular nominations.

(c) Eligibility of individuals for nomination. A person may be nominated only if it is determined that at the time he is to commence study under the Fellowship he will have completed the requirements for the baccalaureate degree or its equivalent, and in the case of a 3-year Fellowship, that he will have completed no more than one half year of study beyond the baccalaureate degree creditable toward the degree to be awarded upon successful completion of his course of study in the Approved Program. A limited number of persons who have completed one or two years of graduate study will be awarded two and one year Fellowships respectively.

(d) Citizenship. To be eligible for a Fellowship, a person must be a citizen or national of the United States, or have such immigration status and personal