Office of Postsecondary Education - U.S. Department of Education

Office of Postsecondary Education - U.S. Department of Education Office of Postsecondary Education - U.S. Department of Education

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WReier-Aviles on DSKGBLS3C1PROD with RULES266952 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations(2) The student’s withdrawal date andthe total number of calendar days in thepayment period or period of enrollmentwould be the withdrawal date and totalnumber of calendar days that wouldhave applied if the student had notprovided written confirmation of afuture date of attendance in accordancewith paragraph (a)(2)(ii)(A) of thissection.(iii)(A) If a student withdraws from aterm-based credit-hour program offeredin modules during a payment period orperiod of enrollment and reenters thesame program prior to the end of theperiod, subject to conditions establishedby the Secretary, the student is eligibleto receive any title IV, HEA programfunds for which he or she was eligibleprior to withdrawal, including fundsthat were returned by the institution orstudent under the provisions of thissection, provided the student’senrollment status continues to supportthe full amount of those funds.(B) In accordance with § 668.4(f), if astudent withdraws from a clock-hour ornonterm credit hour program during apayment period or period of enrollmentand then reenters the same programwithin 180 calendar days, the studentremains in that same period when he orshe returns and, subject to conditionsestablished by the Secretary, is eligibleto receive any title IV, HEA programfunds for which he or she was eligibleprior to withdrawal, including fundsthat were returned by the institution orstudent under the provisions of thissection.* * * * *(b) * * *(3)(i) An institution is required to takeattendance if—(A) An outside entity (such as theinstitution’s accrediting agency or aState agency) has a requirement that theinstitution take attendance;(B) The institution itself has arequirement that its instructors takeattendance; or(C) The institution or an outsideentity has a requirement that can onlybe met by taking attendance or acomparable process, including, but notlimited to, requiring that students in aprogram demonstrate attendance in theclasses of that program, or a portion ofthat program.(ii) If, in accordance with paragraph(b)(3)(i) of this section, an institution isrequired to take attendance or requiresthat attendance be taken for only somestudents, the institution must use itsattendance records to determine awithdrawal date in accordance withparagraph (b)(1) of this section for thosestudents.(iii)(A) If, in accordance withparagraph (b)(3)(i) of this section, aninstitution is required to takeattendance, or requires that attendancebe taken, for a limited period, theinstitution must use its attendancerecords to determine a withdrawal datein accordance with paragraph (b)(3)(i) ofthis section for that limited period.(B) A student in attendance the lasttime attendance is required to be takenduring the limited period identified inparagraph (b)(3)(iii)(A) of this sectionwho subsequently stops attendingduring the payment period will betreated as a student for whom theinstitution was not required to takeattendance.(iv) If an institution is required to takeattendance or requires that attendancebe taken, on only one specified day tomeet a census reporting requirement,the institution is not considered to takeattendance.* * * * *(f) * * *(2)(i) The total number of calendardays in a payment period or period ofenrollment includes all days within theperiod that the student was scheduledto complete, except that scheduledbreaks of at least five consecutive daysare excluded from the total number ofcalendar days in a payment period orperiod of enrollment and the number ofcalendar days completed in that period.(ii) The total number of calendar daysin a payment period or period ofenrollment does not include—(A) Days in which the student was onan approved leave of absence; or(B) For a payment period or period ofenrollment in which any courses in theprogram are offered in modules, anyscheduled breaks of at least fiveconsecutive days when the student isnot scheduled to attend a module orother course offered during that periodof time.* * * * *(l) * * *(6) A program is ‘‘offered in modules’’if a course or courses in the program donot span the entire length of thepayment period or period of enrollment.(7)(i) ‘‘Academic attendance’’ and‘‘attendance at an academically-relatedactivity’’—(A) Include, but are not limited to—(1) Physically attending a class wherethere is an opportunity for directinteraction between the instructor andstudents;(2) Submitting an academicassignment;(3) Taking an exam, an interactivetutorial, or computer-assistedinstruction;VerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00122 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2(4) Attending a study group that isassigned by the institution;(5) Participating in an onlinediscussion about academic matters; and(6) Initiating contact with a facultymember to ask a question about theacademic subject studied in the course;and(B) Do not include activities where astudent may be present, but notacademically engaged, such as—(1) Living in institutional housing;(2) Participating in the institution’smeal plan;(3) Logging into an online classwithout active participation; or(4) Participating in academiccounseling or advisement.(ii) A determination of ‘‘academicattendance’’ or ‘‘attendance at anacademically-related activity’’ must bemade by the institution; a student’scertification of attendance that is notsupported by institutionaldocumentation is not acceptable.(8) A program is a nonstandard-termprogram if the program is a term-basedprogram that does not qualify under 34CFR 690.63(a)(1) or (a)(2) to calculateFederal Pell Grant payments under 34CFR 690.63(b) or (c).* * * * *■ 19. Section 668.25 is amended by:■ A. In paragraph (c)(2)(v), removing theword ‘‘and’’.■ B. In paragraph (c)(2)(vi), adding theword ‘‘and’’ after the punctuation ‘‘;’’.■ C. Adding paragraph (c)(2)(vii).The addition reads as follows:§ 668.25 Contracts between an institutionand a third party servicer.* * * * *(c) * * *(2) * * *(vii) Payment of any commission,bonus, or other incentive payment basedin any part, directly or indirectly, uponsuccess in securing enrollments or theaward of financial aid to any person orentity engaged in any studentrecruitment or admission activity or inmaking decisions regarding the award oftitle IV, HEA program funds.* * * * *■ 20. Section 668.32 is amended by:■ A. In paragraph (e)(3), removing theword ‘‘or’’ that appears after thepunctuation ‘‘;’’.■ B. In paragraph (e)(4)(ii), removing thepunctuation ‘‘.’’ and adding, in its place,the punctuation and word ‘‘; or’’.■ C. Adding new paragraph (e)(5).■ D. Revising paragraph (f).The addition and revision read asfollows:§ 668.32 Student eligibility—general.* * * * *

Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66953WReier-Aviles on DSKGBLS3C1PROD with RULES2(e) * * *(5) Has been determined by theinstitution to have the ability to benefitfrom the education or training offeredby the institution based on thesatisfactory completion of 6 semesterhours, 6 trimester hours, 6 quarterhours, or 225 clock hours that areapplicable toward a degree or certificateoffered by the institution.(f) Maintains satisfactory academicprogress in his or her course of studyaccording to the institution’s publishedstandards of satisfactory academicprogress that meet the requirements of§ 668.34.* * * * *■ 21. Section 668.34 is revised to readas follows:§ 668.34 Satisfactory academic progress.(a) Satisfactory academic progresspolicy. An institution must establish areasonable satisfactory academicprogress policy for determining whetheran otherwise eligible student is makingsatisfactory academic progress in his orher educational program and mayreceive assistance under the title IV,HEA programs. The Secretary considersthe institution’s policy to be reasonableif—(1) The policy is at least as strict asthe policy the institution applies to astudent who is not receiving assistanceunder the title IV, HEA programs;(2) The policy provides for consistentapplication of standards to all studentswithin categories of students, e.g., fulltime,part-time, undergraduate, andgraduate students, and educationalprograms established by the institution;(3) The policy provides that astudent’s academic progress isevaluated—(i) At the end of each payment periodif the educational program is either oneacademic year in length or shorter thanan academic year; or(ii) For all other educationalprograms, at the end of each paymentperiod or at least annually to correspondwith the end of a payment period;(4)(i) The policy specifies the gradepoint average (GPA) that a student mustachieve at each evaluation, or if a GPAis not an appropriate qualitativemeasure, a comparable assessmentmeasured against a norm; and(ii) If a student is enrolled in aneducational program of more than twoacademic years, the policy specifies thatat the end of the second academic year,the student must have a GPA of at leasta ‘‘C’’ or its equivalent, or have academicstanding consistent with theinstitution’s requirements forgraduation;(5)(i) The policy specifies the pace atwhich a student must progress throughhis or her educational program to ensurethat the student will complete theprogram within the maximumtimeframe, as defined in paragraph (b)of this section, and provides formeasurement of the student’s progressat each evaluation; and(ii) An institution calculates the paceat which the student is progressing bydividing the cumulative number ofhours the student has successfullycompleted by the cumulative number ofhours the student has attempted. Inmaking this calculation, the institutionis not required to include remedialcourses;(6) The policy describes how astudent’s GPA and pace of completionare affected by course incompletes,withdrawals, or repetitions, or transfersof credit from other institutions. Credithours from another institution that areaccepted toward the student’seducational program must count as bothattempted and completed hours;(7) Except as provided in paragraphs(c) and (d) of this section, the policyprovides that, at the time of eachevaluation, a student who has notachieved the required GPA, or who isnot successfully completing his or hereducational program at the requiredpace, is no longer eligible to receiveassistance under the title IV, HEAprograms;(8) If the institution places studentson financial aid warning, or on financialaid probation, as defined in paragraph(b) of this section, the policy describesthese statuses and that—(i) A student on financial aid warningmay continue to receive assistanceunder the title IV, HEA programs for onepayment period despite a determinationthat the student is not makingsatisfactory academic progress.Financial aid warning status may beassigned without an appeal or otheraction by the student; and(ii) A student on financial aidprobation may receive title IV, HEAprogram funds for one payment period.While a student is on financial aidprobation, the institution may requirethe student to fulfill specific terms andconditions such as taking a reducedcourse load or enrolling in specificcourses. At the end of one paymentperiod on financial aid probation, thestudent must meet the institution’ssatisfactory academic progress standardsor meet the requirements of theacademic plan developed by theinstitution and the student to qualify forfurther title IV, HEA program funds;(9) If the institution permits a studentto appeal a determination by theVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00123 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2institution that he or she is not makingsatisfactory academic progress, thepolicy describes—(i) How the student may reestablishhis or her eligibility to receiveassistance under the title IV, HEAprograms;(ii) The basis on which a student mayfile an appeal: The death of a relative,an injury or illness of the student, orother special circumstances; and(iii) Information the student mustsubmit regarding why the student failedto make satisfactory academic progress,and what has changed in the student’ssituation that will allow the student todemonstrate satisfactory academicprogress at the next evaluation;(10) If the institution does not permita student to appeal a determination bythe institution that he or she is notmaking satisfactory academic progress,the policy must describe how thestudent may reestablish his or hereligibility to receive assistance underthe title IV, HEA programs; and(11) The policy provides fornotification to students of the results ofan evaluation that impacts the student’seligibility for title IV, HEA programfunds.(b) Definitions. The followingdefinitions apply to the terms used inthis section:Appeal. Appeal means a process bywhich a student who is not meeting theinstitution’s satisfactory academicprogress standards petitions theinstitution for reconsideration of thestudent’s eligibility for title IV, HEAprogram assistance.Financial aid probation. Financial aidprobation means a status assigned by aninstitution to a student who fails tomake satisfactory academic progress andwho has appealed and has hadeligibility for aid reinstated.Financial aid warning. Financial aidwarning means a status assigned to astudent who fails to make satisfactoryacademic progress at an institution thatevaluates academic progress at the endof each payment period.Maximum timeframe. Maximumtimeframe means—(1) For an undergraduate programmeasured in credit hours, a period thatis no longer than 150 percent of thepublished length of the educationalprogram, as measured in credit hours;(2) For an undergraduate programmeasured in clock hours, a period thatis no longer than 150 percent of thepublished length of the educationalprogram, as measured by the cumulativenumber of clock hours the student isrequired to complete and expressed incalendar time; and

Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66953WReier-Aviles on DSKGBLS3C1PROD with RULES2(e) * * *(5) Has been determined by theinstitution to have the ability to benefitfrom the education or training <strong>of</strong>feredby the institution based on thesatisfactory completion <strong>of</strong> 6 semesterhours, 6 trimester hours, 6 quarterhours, or 225 clock hours that areapplicable toward a degree or certificate<strong>of</strong>fered by the institution.(f) Maintains satisfactory academicprogress in his or her course <strong>of</strong> studyaccording to the institution’s publishedstandards <strong>of</strong> satisfactory academicprogress that meet the requirements <strong>of</strong>§ 668.34.* * * * *■ 21. Section 668.34 is revised to readas follows:§ 668.34 Satisfactory academic progress.(a) Satisfactory academic progresspolicy. An institution must establish areasonable satisfactory academicprogress policy for determining whetheran otherwise eligible student is makingsatisfactory academic progress in his orher educational program and mayreceive assistance under the title IV,HEA programs. The Secretary considersthe institution’s policy to be reasonableif—(1) The policy is at least as strict asthe policy the institution applies to astudent who is not receiving assistanceunder the title IV, HEA programs;(2) The policy provides for consistentapplication <strong>of</strong> standards to all studentswithin categories <strong>of</strong> students, e.g., fulltime,part-time, undergraduate, andgraduate students, and educationalprograms established by the institution;(3) The policy provides that astudent’s academic progress isevaluated—(i) At the end <strong>of</strong> each payment periodif the educational program is either oneacademic year in length or shorter thanan academic year; or(ii) For all other educationalprograms, at the end <strong>of</strong> each paymentperiod or at least annually to correspondwith the end <strong>of</strong> a payment period;(4)(i) The policy specifies the gradepoint average (GPA) that a student mustachieve at each evaluation, or if a GPAis not an appropriate qualitativemeasure, a comparable assessmentmeasured against a norm; and(ii) If a student is enrolled in aneducational program <strong>of</strong> more than twoacademic years, the policy specifies thatat the end <strong>of</strong> the second academic year,the student must have a GPA <strong>of</strong> at leasta ‘‘C’’ or its equivalent, or have academicstanding consistent with theinstitution’s requirements forgraduation;(5)(i) The policy specifies the pace atwhich a student must progress throughhis or her educational program to ensurethat the student will complete theprogram within the maximumtimeframe, as defined in paragraph (b)<strong>of</strong> this section, and provides formeasurement <strong>of</strong> the student’s progressat each evaluation; and(ii) An institution calculates the paceat which the student is progressing bydividing the cumulative number <strong>of</strong>hours the student has successfullycompleted by the cumulative number <strong>of</strong>hours the student has attempted. Inmaking this calculation, the institutionis not required to include remedialcourses;(6) The policy describes how astudent’s GPA and pace <strong>of</strong> completionare affected by course incompletes,withdrawals, or repetitions, or transfers<strong>of</strong> credit from other institutions. Credithours from another institution that areaccepted toward the student’seducational program must count as bothattempted and completed hours;(7) Except as provided in paragraphs(c) and (d) <strong>of</strong> this section, the policyprovides that, at the time <strong>of</strong> eachevaluation, a student who has notachieved the required GPA, or who isnot successfully completing his or hereducational program at the requiredpace, is no longer eligible to receiveassistance under the title IV, HEAprograms;(8) If the institution places studentson financial aid warning, or on financialaid probation, as defined in paragraph(b) <strong>of</strong> this section, the policy describesthese statuses and that—(i) A student on financial aid warningmay continue to receive assistanceunder the title IV, HEA programs for onepayment period despite a determinationthat the student is not makingsatisfactory academic progress.Financial aid warning status may beassigned without an appeal or otheraction by the student; and(ii) A student on financial aidprobation may receive title IV, HEAprogram funds for one payment period.While a student is on financial aidprobation, the institution may requirethe student to fulfill specific terms andconditions such as taking a reducedcourse load or enrolling in specificcourses. At the end <strong>of</strong> one paymentperiod on financial aid probation, thestudent must meet the institution’ssatisfactory academic progress standardsor meet the requirements <strong>of</strong> theacademic plan developed by theinstitution and the student to qualify forfurther title IV, HEA program funds;(9) If the institution permits a studentto appeal a determination by theVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00123 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2institution that he or she is not makingsatisfactory academic progress, thepolicy describes—(i) How the student may reestablishhis or her eligibility to receiveassistance under the title IV, HEAprograms;(ii) The basis on which a student mayfile an appeal: The death <strong>of</strong> a relative,an injury or illness <strong>of</strong> the student, orother special circumstances; and(iii) Information the student mustsubmit regarding why the student failedto make satisfactory academic progress,and what has changed in the student’ssituation that will allow the student todemonstrate satisfactory academicprogress at the next evaluation;(10) If the institution does not permita student to appeal a determination bythe institution that he or she is notmaking satisfactory academic progress,the policy must describe how thestudent may reestablish his or hereligibility to receive assistance underthe title IV, HEA programs; and(11) The policy provides fornotification to students <strong>of</strong> the results <strong>of</strong>an evaluation that impacts the student’seligibility for title IV, HEA programfunds.(b) Definitions. The followingdefinitions apply to the terms used inthis section:Appeal. Appeal means a process bywhich a student who is not meeting theinstitution’s satisfactory academicprogress standards petitions theinstitution for reconsideration <strong>of</strong> thestudent’s eligibility for title IV, HEAprogram assistance.Financial aid probation. Financial aidprobation means a status assigned by aninstitution to a student who fails tomake satisfactory academic progress andwho has appealed and has hadeligibility for aid reinstated.Financial aid warning. Financial aidwarning means a status assigned to astudent who fails to make satisfactoryacademic progress at an institution thatevaluates academic progress at the end<strong>of</strong> each payment period.Maximum timeframe. Maximumtimeframe means—(1) For an undergraduate programmeasured in credit hours, a period thatis no longer than 150 percent <strong>of</strong> thepublished length <strong>of</strong> the educationalprogram, as measured in credit hours;(2) For an undergraduate programmeasured in clock hours, a period thatis no longer than 150 percent <strong>of</strong> thepublished length <strong>of</strong> the educationalprogram, as measured by the cumulativenumber <strong>of</strong> clock hours the student isrequired to complete and expressed incalendar time; and

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