ance and counseling programs for participation under the plan and the methods to be used in the conduct of the professional reviews of such programs pursuant to § 143.8.

(2) Minimum professional standards to be employed by the State educational agency for approval of local guidance and counseling programs with respect to (i) a testing program which fulfills the purposes established in § 143.29; (ii) the guidance and counseling activities to be provided and the grade levels of students who are to be the participants in such activities; (iii) the duties of and qualifications for local guidance and counseling positions; (iv) the ratio of students to each full-time local guidance and counseling position or its equivalent filled by a person performing the duties and meeting the qualifications called for by subdivision (iii) of this subparagraph; and (v) the physical facilities, equipment, and materials to be available for the conduct of guidance and counseling activities under the plan.

(3) Professional standards recommended by the State agency for local guidance and counseling programs, in the areas of minimum standards established under subparagraph (2) of this paragraph, with a description of such steps as may be required to meet such recommended professional standards.

(4) Supervisory methods and procedures to be employed in local guidance and counseling programs under the plan.

(5) Coordination methods and procedures to provide assurance of appropriate relationships between the local guidance and counseling program under the plan, and other related services available to students.

(6) Categories of expenditures in local guidance and counseling programs (§ 143.34) to be included by the State educational agency as a part of the total amount expended to earn its allotment under section 502(a) of the Act.

(b) The State plan may also provide for the establishment of guidance and counseling programs designed to meet special needs of students or unusual circumstances in the community in which the local agency is located, such as cultural differences, economic deprivation, dropouts, and youth unemployment. The plan shall provide that any such special programs be consistent with §§ 143.

26 and 143.33, and describe the conditions under which the State will establish such programs including provisions for State supervision, evaluation, and reports to the Commissioner.

§ 143.36 Transition provisions.

State plan. A State plan approved prior to the promulgation of these revised regulations remains in effect through June 30, 1965, unless prior to June 30, 1965, the State plan is revised to be in accord with these revised regulations. After June 30, 1965, in order for a State to receive payments under Title V-A of the Act, the State plan must have been revised to be in conformity with the revised regulations.

144.12 144.13

repayment

Provisions for loan cancellations.

Compliance by institutions.

of

Preceding provisions not exhaustive of jurisdiction of the Commissioner.

AUTHORITY: The provisions of this Part 144 issued under secs. 201 to 209, 72 Stat. 158387, as amended, 20 U.S.C. 421-429.

SOURCE: The provisions of this Part 144 appear at 31 F.R. 7463, May 24, 1966, unless otherwise noted.

§ 144.1 Policy and purposes of the National Defense Student Loan Fund Program.

The National Defense Education Act of 1958, Public Law 85-864 (amended), affirmed the need to identify and educate more of the Nation's talented young men and women, and to develop programs through which the fullest development

of their mental resources and technical skills may be realized. Title II of the Act initiates the National Defense Student Loan Program, under which National Defense Student Loan Funds will be established at participating institutions of higher education throughout the United States for the purpose of making long-term, low-interest loans to qualified students who are in need of such financial assistance in order to pursue at least a half-time course of study at such institutions. The Program includes provisions designed to encourage additional education on the part of students with a superior academic background. The Program also includes provisions designed to attract an additional number of superior students to the teaching profession for service at the elementary and secondary school levels and at institutions of higher education.

§ 144.2 Definitions.

(a) The Act. "The Act" means the National Defense Education Act of 1958, Public Law 85-864, 20 U.S.C. Chapter 17 as amended.

(b) State. The term "State" for purposes of this part, means a State, Puerto Rico, the District of Columbia, the Canal Zone, Guam, American Samoa, or the Virgin Islands.

(c) Institution of higher education. "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. The term "public" as applied to any school or institution includes a school or institution of any agency of the United States, except that no such school or institution shall be eligible to receive any grant, loan or other payment under this Act.

(e) Nonprofit. The term "nonprofit," as applied to a school or institution, means a school or 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) Commissioner. The term "Commissioner" means the Commissioner of Education.

(g) State educational agency. The term "State educational agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the governor or by State law.

(h) Local educational agency. The term "local educational agency" means a board of education or other legally constituted local school authority having administrative control and direction of public elementary or secondary schools in a city, county, township, school district, or political subdivision in a State, or any other public institution or agency having administrative control and direction of a public elementary or secondary school.

(i) Bachelor's degree. "Bachelor's degree" means a degree which requires completion by the recipient of a total of not less than the equivalent of 4 years of academic study at the college (including graduate and professional school) level.

(j) Institutional application to participate in the National Defense Student Loan Program. An “institutional application to participate in the National Defense Student Loan Program" consists of

(1) A proposed agreement between the Commissioner and the institution pursuant to section 204 of the Act for payment of Federal capital contributions into a National Defense Student Loan Fund at such institution;

(2) An application in such form as the Commissioner may require, for a Federal capital contribution pursuant to section 203 of the Act; and

(3) If the institution's capital contribution is to be financed in whole or in part through a Federal institutional loan, an application in such form as the Commissioner may require, for a Federal institutional loan.

(k) National Defense Student Loan Fund. "National Defense Student Loan Fund" or "Fund" means the fund established pursuant to section 204 of the Act at an institution with which the Commissioner has executed an agreement, such fund being composed of Fed

eral capital contributions, institutional capital contributions, repayments of capital and interest, charges collected pursuant to § 144.8 (h), and any other earnings of the fund.

contribution.

(1) Federal capital "Federal capital contribution" means the capital portion contributed by the Commissioner to a National Defense Loan Fund pursuant to section 203 of the Act.

(m) Federal institutional loan. "Federal institutional loan" means a loan made by the Federal Government pursuant to section 207 of the Act to an institution, the proceeds of which are to be deposited by such institution in its National Defense Student Loan Fund.

(n) Institutional capital contribution. ■"Institutional capital contribution" means the money deposited into a National Defense Student Loan Fund by =the institution in an amount not less than one-ninth of the Federal capital =contributions thereto.

(0) National of the United States. = "National of the United States" means =(1) a citizen of the United States or (2) a person who though not a citizen of the United States owes permanent allegiance to the United States (8 U.S.C.A 11101(a) (22)).

(p) Full-time student. "Full-time student" means a student who is carrying a full-time academic workload in terms of course work or other required activities as determined by the institution.

(q) Full-time attendance. "Full-time attendance" means compliance by a fulltime student with the policies and regulations regarding attendance in effect at the institution in which he is enrolled. (r) Half-time student. "Half-time student," or "student enrolled on at least a half-time basis," means a student who is carrying at least one-half of the normal full-time academic workload as determined by the institution where he is enrolled.

(s) Professional or graduate student. "Professional or graduate student" means, in general, a student who is enrolled in an academic program of instruction above the college level which is provided at an institution of higher education. The term includes (1) that portion of any program involving a period of study beyond 4 years of study at the college level, or (2) any portion of a program leading to (i) a degree beyond the bachelor's or first professional

degree, or (ii) a first professional degree, when at least 3 years of study at the college level are required for entrance into a program leading to such degree.

(t) Satisfactory standing, good standing. The terms "satisfactory standing" and "good standing" mean the eligibility of a student to continue in attendance at the institution where he is enrolled as a student in accordance with the institution's standards and practices.

(u) Full-time teacher. "Full-time teacher" for the purpose of section 205(b) (3) of the Act means:

(1) In the case of an elementary or secondary school teacher, an individual professionally employed on a full-time basis, and regularly engaged in carrying out the instructional programs of an elementary or secondary school.

While

the term generally includes classroom teachers and their supervisors, it may also include other personnel such as school librarians and guidance counselors meeting the above requirements; and

(2) In the case of a teacher in an institution of higher education, an individual professionally employed by such institution and who is regarded by the institution for purposes of salary, tenure, academic rank, or similar purposes as being engaged on a full-time basis in activities primarily concerned with rendering direct and personal services either in the instructional program or in a capacity directly related to the improvement of the students' educational development at such institution.

(v) Elementary school. "Elementary school" means a school which provides elementary education, as determined under State law or, if such school is not in any State, as determined by the Commissioner.

(w) Secondary school. "Secondary school" means a school which provides secondary education, as determined under State law or, if such school is not in any State, as determined by the Commissioner, except that it does not include any education provided beyond grade 12.

(x) Academic year or its equivalent. "Academic year or its equivalent" means: (1) In general, the number of credit hours which a student must acquire during any one school year in order to secure the degree or certificate toward which he is working in the number of semesters or terms normally taken therefor at the

proved plan program, either (a) as a reimbursement for actual expenditures or (b) as an advance prior to expenditures. Advances shall not be eligible for inclusion as expenditures for the purposes of earning Federal financial participation until adequate evidence of actual expenditures for approved programs has been received and verified by the State educational agency. (See §§ 143.13 and 143.15.) Reimbursement or payment need not be uniform to all local agencies (1.e., the State plan may provide a method by which the ratio of reimbursement to total expenditures may be adjusted on an individual basis to meet local needs).

§ 143.18 Disposal of records.

(a) General rule. The State educational agency shall provide for keeping accessible and intact all records supporting claims for Federal grants or relating to the accountability of the grantee agency for expenditure of such grants and relating to the expenditure of matching funds: (1) For three years after the close of the fiscal year in which the expenditure was made; (2) until the State agency is notified that such records are not needed for program administration review; or (3) until the State agency is notified of the completion of the Department's fiscal audit, whichever is later.

(b) Questioned expenditure. The records involved in any claim or expenditure which has been questioned shall be maintained until necessary adjustments have been reviewed and cleared by the Department.

(c) Records of equipment. Where nonconsumable equipment which costs $50 or more per unit is purchased with Federal financial participation, inventories and other records supporting accountability shall be maintained until the State agency is notified of the completion of the Department's review and audit covering the disposition of such equipment.

§ 143.19 Adjustments.

The State educational agency in its maintenance of program expenditure accounts, records, and reports shall promptly make any necessary adjustments in its records to reflect refunds, credits, underpayments, or overpayments, as well as any adjustments resulting from Federal or State administrative reviews and audits. Such adjustments

shall be set forth in the State's financial reports filed with the Commissioner.

Subpart D-Federal Payment
Procedures

§ 143.20 Estimates and financial reports.

(a) Reports. The State agency shall submit, in accordance with procedures established by the Commissioner:

(1) A description of the activities to be carried on under the plan during the fiscal year;

(2) Reports of estimated total expenditures for activities under the plan during the fiscal year, and the amount of funds available to pay the non-Federal share of such expenditures;

(3) Following the end of the fiscal year, a report of the total expenditures made under the plan during the fiscal year; and

(4) Such other estimates and reports as are periodically needed to account properly for funds.

(b) Effect of estimates. Expenditures will not be precluded from Federal financial participation because of minor deviations from the information submitted pursuant to paragraph (a) of this section if they are otherwise made in accordance with the approved plan and the regulations.

of expenditures under the State plan with respect to which Federal financial participation is authorized.

(c) Reallotment. In order to provide a basis for reallotments by the Commissioner under section 502(b) of the Act, each State agency shall, if requested, submit to the Commission, by such date or dates as he may specify, a statement showing the anticipated need during the current fiscal year for the amount previously allotted, or any amount needed to be added thereto. Such further information as the Commissioner may request for the purpose of making reallotments shall be reflected in such statements. No allotment (or reallotment) of funds may be carried over for use during a subsequent fiscal year.

§ 143.23 Certifying payments.

Payments will be certified periodically after: (a) The State has on file in the Office of Education a plan approved by the Commissioner; (b) the pertinent estimates and reports required by §§ 143.20 and 143.22(c) have been reviewed; and (c) the Commissioner is satisfied that the State needs the funds and will be able to carry out the plan during the current fiscal year.

§ 143.24 Interest on Federal grants.

Interest earned on Federal grants shall be credited to the United States. The State agency shall submit as a part of each annual financial report a statement showing the amount of interest earned on Federal funds during that period. Ordinarily such interest earnings will be considered in the adjustment of the Federal-State account; but for the last year of the program, payment of interest shall by made by the State to the Commissioner.

Subpart E-State Supervisory Services and Administration

143.25 Programs for supervisory services and administration.

The State plan shall describe the programs of the State agency for supervisory and related services in public elementary and secondary schools in the fields of guidance and counseling, and testing; and administration of all plan operations. There may be Federal participation in State agency expenditures for such programs to the extent that they are directly related to the establish

ment, maintenance, and improvement of guidance and counseling, and testing, programs developed under the plan.

(a) Categories of activities. Such programs may include the following activities: (1) The organization, general direction and coordination of the guidance and counseling, and testing, programs established under the plan; (2) planning State programs and assisting in the planning of local programs; (3) assisting local guidance personnel in establishing, maintaining, or improving programs; (4) planning and preparation of materials and information for State and local programs; (5) demonstrating through pilot programs, or otherwise, guidance and counseling, and testing, procedures and techniques; (6) evaluating the results of guidance and counseling, and testing, programs; and (7) such other related activities as may be necessary for the organization, maintenance, and improvement of programs established under the plan.

(b) Categories of expense. The cost of administration and of supervisory and related services, in guidance and counseling, and testing, programs in which Federal participation may be claimed includes such categories of expense as the following, to the extent that the items of cost are attributable to the programs approved under the State plan: (1) Salaries of the staff, both clerical and professional; (2) consultants' fees; (3) expenses of committees, workshops and conferences, including the travel of those representing the State agency or acting in an advisory capacity to it; (4) contractual services consistent with State laws and regulations and the State plan, provided such services do not result in the relinquishing by the State agency of any part of its responsibility for supervisory and related services; (5) office equipment and equipment necessary for State programs of guidance and counseling, and testing; (6) communication; (7) supplies, printing, and printed materials, including reference books; (8) purchase or rental of tests, answer sheets, profile sheets, cumulative record forms, and such other materials as may be necessary under the plan; (9) rental of equipment for scoring, processing, and reporting the results of tests administered under the plan or, if such equipment is owned by State or local agencies, the pro rata share of the cost of maintaining and operating such equipment;