WReier-Aviles on DSKGBLS3C1PROD with RULES266950 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulationspurposes <strong>of</strong> the title IV, HEA programs,unless—(i) The program is at least twoacademic years in length and providesan associate degree, a bachelor’s degree,a pr<strong>of</strong>essional degree, or an equivalentdegree as determined by the Secretary;or(ii) Each course within the program isacceptable for full credit toward thatinstitution’s associate degree, bachelor’sdegree, pr<strong>of</strong>essional degree, orequivalent degree as determined by theSecretary provided that—(A) The institution’s degree requiresat least two academic years <strong>of</strong> study;and(B) The institution demonstrates thatstudents enroll in, and graduate from,the degree program.(2) A program is considered to be aclock-hour program for purposes <strong>of</strong> thetitle IV, HEA programs if—(i) Except as provided in paragraph(k)(3) <strong>of</strong> this section, a program isrequired to measure student progress inclock hours when—(A) Receiving Federal or Stateapproval or licensure to <strong>of</strong>fer theprogram; or(B) Completing clock hours is arequirement for graduates to apply forlicensure or the authorization topractice the occupation that the studentis intending to pursue;(ii) The credit hours awarded for theprogram are not in compliance with thedefinition <strong>of</strong> a credit hour in 34 CFR600.2; or(iii) The institution does not providethe clock hours that are the basis for thecredit hours awarded for the program oreach course in the program and, exceptas provided in § 668.4(e), requiresattendance in the clock hours that arethe basis for the credit hours awarded.(3) The requirements <strong>of</strong> paragraph(k)(2)(i) <strong>of</strong> this section do not apply toa program if there is a State or Federalapproval or licensure requirement that alimited component <strong>of</strong> the program mustinclude a practicum, internship, orclinical experience component <strong>of</strong> theprogram that must include a minimumnumber <strong>of</strong> clock hours.(l) Formula. (1) Except as provided inparagraph (l)(2) <strong>of</strong> this section, forpurposes <strong>of</strong> determining whether aprogram described in paragraph (k) <strong>of</strong>this section satisfies the requirementscontained in paragraph (c)(3) or (d) <strong>of</strong>this section, and <strong>of</strong> determining thenumber <strong>of</strong> credit hours in thateducational program with regard to thetitle IV, HEA programs—(i) A semester hour must include atleast 37.5 clock hours <strong>of</strong> instruction;(ii) A trimester hour must include atleast 37.5 clock hours <strong>of</strong> instruction;and(iii) A quarter hour must include atleast 25 clock hours <strong>of</strong> instruction.(2) The institution’s conversions toestablish a minimum number <strong>of</strong> clockhours <strong>of</strong> instruction per credit may beless than those specified in paragraph(l)(1) <strong>of</strong> this section, if the institution’sdesignated accrediting agency, orrecognized State agency for the approval<strong>of</strong> public postsecondary vocationalinstitutions, for participation in the titleIV, HEA programs has identified anydeficiencies with the institution’spolicies and procedures, or theirimplementation, for determining thecredit hours, as defined in 34 CFR600.2, that the institution awards forprograms and courses, in accordancewith 34 CFR 602.24(f), or, if applicable,34 CFR 603.24(c), so long as—(i) The institution’s student workoutside <strong>of</strong> class combined with theclock-hours <strong>of</strong> instruction meet orexceed the numeric requirements inparagraph (l)(1) <strong>of</strong> this section; and(ii)(A) A semester hour must includeat least 30 clock hours <strong>of</strong> instruction;(B) A trimester hour must include atleast 30 clock hours <strong>of</strong> instruction; and(C) A quarter hour must include atleast 20 hours <strong>of</strong> instruction.* * * * *■ 16. Section 668.14 is amended byrevising paragraph (b)(22) to read asfollows:§ 668.14 Program participation agreement.* * * * *(b) * * *(22)(i) It will not provide anycommission, bonus, or other incentivepayment based in any part, directly orindirectly, upon success in securingenrollments or the award <strong>of</strong> financialaid, to any person or entity who isengaged in any student recruitment oradmission activity, or in makingdecisions regarding the award <strong>of</strong> title IV,HEA program funds.(A) The restrictions in paragraph(b)(22) <strong>of</strong> this section do not apply tothe recruitment <strong>of</strong> foreign studentsresiding in foreign countries who arenot eligible to receive Federal studentassistance.(B) For the purpose <strong>of</strong> paragraph(b)(22) <strong>of</strong> this section, an employee whoreceives multiple adjustments tocompensation in a calendar year and isengaged in any student enrollment oradmission activity or in makingdecisions regarding the award <strong>of</strong> title IV,HEA program funds is considered tohave received such adjustments basedupon success in securing enrollments orVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00120 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2the award <strong>of</strong> financial aid if thoseadjustments create compensation that isbased in any part, directly or indirectly,upon success in securing enrollments orthe award <strong>of</strong> financial aid.(ii) Notwithstanding paragraph(b)(22)(i) <strong>of</strong> this section, eligibleinstitutions, organizations that arecontractors to eligible institutions, andother entities may make—(A) Merit-based adjustments toemployee compensation provided thatsuch adjustments are not based in anypart, directly or indirectly, upon successin securing enrollments or the award <strong>of</strong>financial aid; and(B) Pr<strong>of</strong>it-sharing payments so long assuch payments are not provided to anyperson who is engaged in studentrecruitment or admission activity or inmaking decisions regarding the award <strong>of</strong>title IV, HEA program funds.(iii) As used in paragraph (b)(22) <strong>of</strong>this section,(A) Commission, bonus, or otherincentive payment means a sum <strong>of</strong>money or something <strong>of</strong> value, other thana fixed salary or wages, paid to or givento a person or an entity for servicesrendered.(B) Securing enrollments or the award<strong>of</strong> financial aid means activities that aperson or entity engages in at any pointin time through completion <strong>of</strong> aneducational program for the purpose <strong>of</strong>the admission or matriculation <strong>of</strong>students for any period <strong>of</strong> time or theaward <strong>of</strong> financial aid to students.(1) These activities include contact inany form with a prospective student,such as, but not limited to—contactthrough preadmission or advisingactivities, scheduling an appointment tovisit the enrollment <strong>of</strong>fice or any other<strong>of</strong>fice <strong>of</strong> the institution, attendance atsuch an appointment, or involvement ina prospective student’s signing <strong>of</strong> anenrollment agreement or financial aidapplication.(2) These activities do not includemaking a payment to a third party forthe provision <strong>of</strong> student contactinformation for prospective studentsprovided that such payment is not basedon—(i) Any additional conduct or actionby the third party or the prospectivestudents, such as participation inpreadmission or advising activities,scheduling an appointment to visit theenrollment <strong>of</strong>fice or any other <strong>of</strong>fice <strong>of</strong>the institution or attendance at such anappointment, or the signing, or beinginvolved in the signing, <strong>of</strong> a prospectivestudent’s enrollment agreement orfinancial aid application; or(ii) The number <strong>of</strong> students(calculated at any point in time <strong>of</strong> aneducational program) who apply for
Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66951WReier-Aviles on DSKGBLS3C1PROD with RULES2enrollment, are awarded financial aid,or are enrolled for any period <strong>of</strong> time,including through completion <strong>of</strong> aneducational program.(C) Entity or person engaged in anystudent recruitment or admissionactivity or in making decisions aboutthe award <strong>of</strong> financial aid means—(1) With respect to an entity engagedin any student recruitment or admissionactivity or in making decisions aboutthe award <strong>of</strong> financial aid, anyinstitution or organization thatundertakes the recruiting or theadmitting <strong>of</strong> students or that makesdecisions about and awards title IV,HEA program funds; and(2) With respect to a person engagedin any student recruitment or admissionactivity or in making decisions aboutthe award <strong>of</strong> financial aid, anyemployee who undertakes recruiting oradmitting <strong>of</strong> students or who makesdecisions about and awards title IV,HEA program funds, and any higherlevel employee with responsibility forrecruitment or admission <strong>of</strong> students, ormaking decisions about awarding titleIV, HEA program funds.(D) Enrollment means the admissionor matriculation <strong>of</strong> a student into aneligible institution.* * * * *■ 17. Section 668.16 is amended by:■ A. Revising paragraph (e).■ B. In paragraph (n) introductory text,removing the word ‘‘and’’ that appearsafter the punctuation‘‘;’’.■ C. In paragraph (o)(2), removing thepunctuation ‘‘.’’ and adding, in its place,the punctuation and word ‘‘; and’’.■ D. Adding paragraph (p).■ E. Revising the OMB control numberat the end <strong>of</strong> the section.The revisions and addition read asfollows:§ 668.16 Standards <strong>of</strong> administrativecapability.* * * * *(e) For purposes <strong>of</strong> determiningstudent eligibility for assistance under atitle IV, HEA program, establishes,publishes, and applies reasonablestandards for measuring whether anotherwise eligible student ismaintaining satisfactory academicprogress in his or her educationalprogram. The Secretary considers aninstitution’s standards to be reasonableif the standards are in accordance withthe provisions specified in § 668.34.* * * * *(p) Develops and follows proceduresto evaluate the validity <strong>of</strong> a student’shigh school completion if the institutionor the Secretary has reason to believethat the high school diploma is not validor was not obtained from an entity thatprovides secondary school education.(Approved by the <strong>Office</strong> <strong>of</strong> Managementand Budget under control number 1845–0022)* * * * *■ 18. Section 668.22 is amended by:■ A. Redesignating paragraphs (a)(2)through (a)(5) as paragraphs (a)(3)through (a)(6), respectively.■ B. Adding new paragraph (a)(2).■ C. In newly redesignated paragraph(a)(5), removing the citation ‘‘(a)(5)’’ andadding, in its place, the citation ‘‘(a)(6)’’.■ D. In newly redesignated paragraph(a)(6)(ii)(A)(2), removing the citation‘‘(a)(5)(iii)’’ and adding, in its place, thecitation ‘‘(a)(6)(iii)’’.■ E. In newly redesignated paragraph(a)(6)(ii)(B)(2), removing the citation‘‘(a)(5)(iii)’’ and adding, in its place, thecitation ‘‘(a)(6)(iii)’’.■ F. In newly redesignated paragraph(a)(6)(ii)(B)(3), removing the citation‘‘(a)(5)(iii)’’ and adding, in its place, thecitation ‘‘(a)(6)(iii)’’.■ G. In newly redesignated paragraph(a)(6)(iii)(A)(1), removing the citation‘‘(a)(5)(ii)(A)(2)’’ and adding, in its place,the citation ‘‘(a)(6)(ii)(A)(2)’’.■ H. In newly redesignated paragraph(a)(6)(iii)(A)(5), removing the citation‘‘(a)(5)(iii)(C)’’ and adding, in its place,the citation ‘‘(a)(6)(iii)(C)’’.■ I. In newly redesignated paragraph(a)(6)(iii)(B), removing the citation‘‘(a)(5)(iii)(A)’’ and adding, in its place,the citation ‘‘(a)(6)(iii)(A)’’.■ J. In newly redesignated paragraph(a)(6)(iv), removing the citation‘‘(a)(5)(iii)’’ and adding, in its place, thecitation ‘‘(a)(6)(iii)’’.■ K. Revising paragraph (b)(3).■ L. Removing paragraph (c)(3)(ii) andredesignating paragraph (c)(3)(i) asparagraph (c)(3).■ M. Revising paragraph (f)(2).■ N. In the introductory text <strong>of</strong>paragraph (j)(2), removing the first word‘‘An’’ and adding, in its place, the words‘‘For an institution that is not requiredto take attendance, an’’.■ O. In paragraph (l)(3), adding thewords ‘‘for an institution that is notrequired to take attendance’’ after thewords ‘‘date <strong>of</strong> the institution’sdetermination that the studentwithdrew’’.■ P. Adding paragraphs (l)(6), (l)(7), and(l)(8).The additions and revisions read asfollows:§ 668.22 Treatment <strong>of</strong> title IV funds whena student withdraws.* * * * *(a) * * *(2)(i) Except as provided inparagraphs (a)(2)(ii) and (a)(2)(iii) <strong>of</strong> thisVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00121 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2section, a student is considered to havewithdrawn from a payment period orperiod <strong>of</strong> enrollment if—(A) In the case <strong>of</strong> a program that ismeasured in credit hours, the studentdoes not complete all the days in thepayment period or period <strong>of</strong> enrollmentthat the student was scheduled tocomplete;(B) In the case <strong>of</strong> a program that ismeasured in clock hours, the studentdoes not complete all <strong>of</strong> the clock hoursand weeks <strong>of</strong> instructional time in thepayment period or period <strong>of</strong> enrollmentthat the student was scheduled tocomplete; or(C) For a student in a nonterm ornonstandard-term program, the studentis not scheduled to begin another coursewithin a payment period or period <strong>of</strong>enrollment for more than 45 calendardays after the end <strong>of</strong> the module thestudent ceased attending, unless thestudent is on an approved leave <strong>of</strong>absence, as defined in paragraph (d) <strong>of</strong>this section.(ii)(A) Notwithstanding paragraph(a)(2)(i)(A) and (a)(2)(i)(B) <strong>of</strong> thissection, for a payment period or period<strong>of</strong> enrollment in which courses in theprogram are <strong>of</strong>fered in modules—(1) A student is not considered tohave withdrawn if the institutionobtains written confirmation from thestudent at the time that would havebeen a withdrawal <strong>of</strong> the date that he orshe will attend a module that beginslater in the same payment period orperiod <strong>of</strong> enrollment; and(2) For nonterm and nonstandardtermprograms, that module begins nolater than 45 calendar days after the end<strong>of</strong> the module the student ceasedattending.(B) If an institution has obtained thewritten confirmation <strong>of</strong> futureattendance in accordance withparagraph (a)(2)(ii)(A) <strong>of</strong> this section—(1) A student may change the date <strong>of</strong>return to a module that begins later inthe same payment period or period <strong>of</strong>enrollment, provided that the studentdoes so in writing prior to the returndate that he or she had previouslyconfirmed; and(2) For nonterm and nonstandardtermprograms, the later module that heor she will attend begins no later than45 calendar days after the end <strong>of</strong>module the student ceased attending.(C) If an institution obtains writtenconfirmation <strong>of</strong> future attendance inaccordance with paragraph (a)(2)(ii)(A)and, if applicable, (a)(2)(ii)(B) <strong>of</strong> thissection, but the student does not returnas scheduled—(1) The student is considered to havewithdrawn from the payment period orperiod <strong>of</strong> enrollment; and
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