66946 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulationshave Adobe Acrobat Reader, which isavailable free at this site.Note: The <strong>of</strong>ficial version <strong>of</strong> this documentis the document published in the FederalRegister. Free Internet access to the <strong>of</strong>ficialedition <strong>of</strong> the Federal Register and the Code<strong>of</strong> Federal Regulations is available on GPOAccess at: http://www.gpoaccess.gov/nara/index/html.(Catalog <strong>of</strong> Federal Domestic Assistance:84.007 FSEOG; 84.032 Federal Family<strong>Education</strong> Loan Program; 84.033 FederalWork-Study Program; 84.037 Federal PerkinsLoan Program; 84.063 Federal Pell GrantProgram; 84.069 LEAP; 84.268 William D.Ford Federal Direct Loan Program; 84.376ACG/SMART; 84.379 TEACH Grant Program)List <strong>of</strong> Subjects34 CFR Part 60034 CFR Part 690Colleges and universities, <strong>Education</strong><strong>of</strong> disadvantaged, Grant programseducation,Reporting and recordkeepingrequirements, Student aid.34 CFR Part 691Colleges and universities, Elementaryand secondary education, Grantprograms-education, Student aid.Dated: October 18, 2010.Arne Duncan,Secretary <strong>of</strong> <strong>Education</strong>.■ For the reasons discussed in thepreamble, the Secretary amends parts600, 602, 603, 668, 682, 685, 686, 690,and 691 <strong>of</strong> title 34 <strong>of</strong> the Code <strong>of</strong>Federal Regulations as follows:(1) Identified by a StandardOccupational Classification (SOC) codeestablished by the <strong>Office</strong> <strong>of</strong> Managementand Budget or an OccupationalInformation Network O*NET–SOC codeestablished by the <strong>Department</strong> <strong>of</strong> Laborand available at http://online.onetcenter.org or its successorsite; or(2) Determined by the Secretary inconsultation with the Secretary <strong>of</strong> Laborto be a recognized occupation.* * * * *■ 3. Section 600.4 is amended by:■ A. In paragraph (a)(3), adding thewords, ‘‘in accordance with § 600.9’’immediately after the word ‘‘located’’.■ B. Revising paragraph (a)(4)(i)(C).The revision reads as follows:WReier-Aviles on DSKGBLS3C1PROD with RULES2Colleges and universities, Foreignrelations, Grant programs-education,Loan programs-education, Reportingand recordkeeping requirements,Selective Service System, Student aid,Vocational education.34 CFR Part 602Colleges and universities, Reportingand recordkeeping requirements.34 CFR Part 603Colleges and universities, Vocationaleducation.34 CFR Part 668Administrative practice andprocedure, Aliens, Colleges anduniversities, Consumer protection,Grant programs-education,Incorporation by reference, Loanprograms-education, Reporting andrecordkeeping requirements, SelectiveService System, Student aid, Vocationaleducation.34 CFR Part 682Administrative practice andprocedure, Colleges and universities,Loan programs-education, Reportingand recordkeeping requirements,Student aid, Vocational education.34 CFR Part 685Administrative practice andprocedure, Colleges and universities,Loan programs-education, Reportingand recordkeeping requirements,Student aid, Vocational education.34 CFR Part 686Administrative practice andprocedure, Colleges and universities,<strong>Education</strong>, Elementary and secondaryeducation, Grant programs-education,Reporting and recordkeepingrequirements, Student aid.PART 600—INSTITUTIONALELIGIBILITY UNDER THE HIGHEREDUCATION ACT OF 1965, ASAMENDED■ 1. The authority citation for part 600continues to read as follows:Authority: 20 U.S.C. 1001, 1002, 1003,1088, 1091, 1094, 1099b, and 1099c, unlessotherwise noted.■ 2. Section 600.2 is amended by:■ A. Adding, in alphabetical order, thedefinition <strong>of</strong> a Credit hour.■ B. Revising the definition <strong>of</strong>Recognized occupation.The addition and revision read asfollows:§ 600.2 Definitions.* * * * *Credit hour: Except as provided in 34CFR 668.8(k) and (l), a credit hour is anamount <strong>of</strong> work represented in intendedlearning outcomes and verified byevidence <strong>of</strong> student achievement that isan institutionally establishedequivalency that reasonablyapproximates not less than—(1) One hour <strong>of</strong> classroom or directfaculty instruction and a minimum <strong>of</strong>two hours <strong>of</strong> out <strong>of</strong> class student workeach week for approximately fifteenweeks for one semester or trimester hour<strong>of</strong> credit, or ten to twelve weeks for onequarter hour <strong>of</strong> credit, or the equivalentamount <strong>of</strong> work over a different amount<strong>of</strong> time; or(2) At least an equivalent amount <strong>of</strong>work as required in paragraph (1) <strong>of</strong> thisdefinition for other academic activitiesas established by the institutionincluding laboratory work, internships,practica, studio work, and otheracademic work leading to the award <strong>of</strong>credit hours.* * * * *Recognized occupation: Anoccupation that is—§ 600.4 Institution <strong>of</strong> higher education.(a) * * *(4) * * *(i) * * *(C) That is at least a one academicyear training program that leads to acertificate, or other nondegreerecognized credential, and preparesstudents for gainful employment in arecognized occupation; and* * * * *§ 600.5 [Amended]■ 4. Section 600.5(a)(4) is amended byadding the words, ‘‘in accordance with§ 600.9’’ immediately after the word‘‘located’’.§ 600.6 [Amended]VerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00116 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2■ 5. Section 600.6(a)(3) is amended byadding the words, ‘‘in accordance with§ 600.9’’ immediately after the word‘‘located’’.■ 6. Section 600.9 is added to subpart Ato read as follows:§ 600.9 State authorization.(a)(1) An institution described under§§ 600.4, 600.5, and 600.6 is legallyauthorized by a State if the State has aprocess to review and appropriately acton complaints concerning theinstitution including enforcingapplicable State laws, and theinstitution meets the provisions <strong>of</strong>paragraphs (a)(1)(i), (a)(1)(ii), or (b) <strong>of</strong>this section.(i)(A) The institution is established byname as an educational institution by aState through a charter, statute,constitutional provision, or other actionissued by an appropriate State agency orState entity and is authorized to operateeducational programs beyond secondaryeducation, including programs leadingto a degree or certificate.(B) The institution complies with anyapplicable State approval or licensure
Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66947WReier-Aviles on DSKGBLS3C1PROD with RULES2requirements, except that the State mayexempt the institution from any Stateapproval or licensure requirementsbased on the institution’s accreditationby one or more accrediting agenciesrecognized by the Secretary or basedupon the institution being in operationfor at least 20 years.(ii) If an institution is established bya State on the basis <strong>of</strong> an authorizationto conduct business in the State or tooperate as a nonpr<strong>of</strong>it charitableorganization, but not established byname as an educational institutionunder paragraph (a)(1)(i) <strong>of</strong> this section,the institution—(A) By name, must be approved orlicensed by the State to <strong>of</strong>fer programsbeyond secondary education, includingprograms leading to a degree orcertificate; and(B) May not be exempt from theState’s approval or licensurerequirements based on accreditation,years in operation, or other comparableexemption.(2) The Secretary considers aninstitution to meet the provisions <strong>of</strong>paragraph (a)(1) <strong>of</strong> this section if theinstitution is authorized by name to<strong>of</strong>fer educational programs beyondsecondary education by—(i) The Federal Government; or(ii) As defined in 25 U.S.C. 1802(2),an Indian tribe, provided that theinstitution is located on tribal lands andthe tribal government has a process toreview and appropriately act oncomplaints concerning an institutionand enforces applicable tribalrequirements or laws.(b)(1) Notwithstanding paragraph(a)(1)(i) and (ii) <strong>of</strong> this section, aninstitution is considered to be legallyauthorized to operate educationalprograms beyond secondary education ifit is exempt from State authorization asa religious institution under the Stateconstitution or by State law.(2) For purposes <strong>of</strong> paragraph (b)(1) <strong>of</strong>this section, a religious institution is aninstitution that—(i) Is owned, controlled, operated, andmaintained by a religious organizationlawfully operating as a nonpr<strong>of</strong>itreligious corporation; and(ii) Awards only religious degrees orcertificates including, but not limited to,a certificate <strong>of</strong> Talmudic studies, anassociate <strong>of</strong> Biblical studies, a bachelor<strong>of</strong> religious studies, a master <strong>of</strong> divinity,or a doctor <strong>of</strong> divinity.(c) If an institution is <strong>of</strong>feringpostsecondary education throughdistance or correspondence education tostudents in a State in which it is notphysically located or in which it isotherwise subject to State jurisdiction asdetermined by the State, the institutionmust meet any State requirements for itto be legally <strong>of</strong>fering postsecondarydistance or correspondence education inthat State. An institution must be ableto document to the Secretary the State’sapproval upon request.(Authority: 20 U.S.C. 1001 and 1002)PART 602—THE SECRETARY’SRECOGNITION OF ACCREDITINGAGENCIES■ 7. The authority citation for part 602continues to read as follows:Authority: 20 U.S.C. 1099b, unlessotherwise noted.■ 8. Section 602.24 is amended byadding a new paragraph (f) to read asfollows:§ 602.24 Additional procedures certaininstitutional accreditors must have.* * * * *(f) Credit-hour policies. Theaccrediting agency, as part <strong>of</strong> its review<strong>of</strong> an institution for initial accreditationor preaccreditation or renewal <strong>of</strong>accreditation, must conduct an effectivereview and evaluation <strong>of</strong> the reliabilityand accuracy <strong>of</strong> the institution’sassignment <strong>of</strong> credit hours.(1) The accrediting agency meets thisrequirement if—(i) It reviews the institution’s—(A) Policies and procedures fordetermining the credit hours, as definedin 34 CFR 600.2, that the institutionawards for courses and programs; and(B) The application <strong>of</strong> the institution’spolicies and procedures to its programsand coursework; and(ii) Makes a reasonable determination<strong>of</strong> whether the institution’s assignment<strong>of</strong> credit hours conforms to commonlyaccepted practice in higher education.(2) In reviewing and evaluating aninstitution’s policies and procedures fordetermining credit hour assignments, anaccrediting agency may use sampling orother methods in the evaluation,sufficient to comply with paragraph(f)(1)(i)(B) <strong>of</strong> this section.(3) The accrediting agency must takesuch actions that it deems appropriateto address any deficiencies that itidentifies at an institution as part <strong>of</strong> itsreviews and evaluations underparagraph (f)(1)(i) and (ii) <strong>of</strong> thissection, as it does in relation to otherdeficiencies it may identify, subject tothe requirements <strong>of</strong> this part.(4) If, following the institutionalreview process under this paragraph (f),the agency finds systemicnoncompliance with the agency’spolicies or significant noncomplianceregarding one or more programs at theVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00117 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2institution, the agency must promptlynotify the Secretary.* * * * *PART 603—SECRETARY’SRECOGNITION PROCEDURES FORSTATE AGENCIES■ 9. The authority citation for part 603is revised to read as follows:Authority: 20 U.S.C. 1001, 1002,1094(c)(4); 38 U.S.C. 3675, unless otherwisenoted.■ 10. Section 603.24 is amended byredesignating paragraph (c) as paragraph(d), adding a new paragraph (c), andrevising the authority citation afterredesignated paragraph (d) to read asfollows:§ 603.24 Criteria for State agencies.* * * * *(c) Credit-hour policies. The Stateagency, as part <strong>of</strong> its review <strong>of</strong> aninstitution for initial approval orrenewal <strong>of</strong> approval, must conduct aneffective review and evaluation <strong>of</strong> thereliability and accuracy <strong>of</strong> theinstitution’s assignment <strong>of</strong> credit hours.(1) The State agency meets thisrequirement if—(i) It reviews the institution’s—(A) Policies and procedures fordetermining the credit hours, as definedin 34 CFR 600.2, that the institutionawards for courses and programs; and(B) The application <strong>of</strong> the institution’spolicies and procedures to its programsand coursework; and(ii) Makes a reasonable determination<strong>of</strong> whether the institution’s assignment<strong>of</strong> credit hours conforms to commonlyaccepted practice in higher education.(2) In reviewing and evaluating aninstitution’s policies and procedures fordetermining credit hour assignments, aState agency may use sampling or othermethods in the evaluation, sufficient tocomply with paragraph (c)(1)(i)(B) <strong>of</strong>this section.(3) The State agency must take suchactions that it deems appropriate toaddress any deficiencies that itidentifies at an institution as part <strong>of</strong> itsreviews and evaluations underparagraph (c)(1)(i) and (ii) <strong>of</strong> thissection, as it does in relation to otherdeficiencies it may identify, subject tothe requirements <strong>of</strong> this part.(4) If, following the institutionalreview process under this paragraph (c),the agency finds systemicnoncompliance with the agency’spolicies or significant noncomplianceregarding one or more programs at theinstitution, the agency must promptlynotify the Secretary.* * * * *
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