66954 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2(3) For a graduate program, a perioddefined by the institution that is basedon the length <strong>of</strong> the educationalprogram.(c) Institutions that evaluatesatisfactory academic progress at theend <strong>of</strong> each payment period. (1) Aninstitution that evaluates satisfactoryacademic progress at the end <strong>of</strong> eachpayment period and determines that astudent is not making progress under itspolicy may nevertheless disburse titleIV, HEA program funds to the studentunder the provisions <strong>of</strong> paragraph (c)(2),(c)(3), or (c)(4) <strong>of</strong> this section.(2) For the payment period followingthe payment period in which thestudent did not make satisfactoryacademic progress, the institutionmay—(i) Place the student on financial aidwarning, and disburse title IV, HEAprogram funds to the student; or(ii) Place a student directly onfinancial aid probation, following theprocedures outlined in paragraph (d)(2)<strong>of</strong> this section and disburse title IV,HEA program funds to the student.(3) For the payment period followinga payment period during which astudent was on financial aid warning,the institution may place the student onfinancial aid probation, and disbursetitle IV, HEA program funds to thestudent if—(i) The institution evaluates thestudent’s progress and determines thatstudent did not make satisfactoryacademic progress during the paymentperiod the student was on financial aidwarning;(ii) The student appeals thedetermination; and(iii)(A) The institution determinesthat the student should be able to meetthe institution’s satisfactory academicprogress standards by the end <strong>of</strong> thesubsequent payment period; or(B) The institution develops anacademic plan for the student that, iffollowed, will ensure that the student isable to meet the institution’s satisfactoryacademic progress standards by aspecific point in time.(4) A student on financial aidprobation for a payment period may notreceive title IV, HEA program funds forthe subsequent payment period unlessthe student makes satisfactory academicprogress or the institution determinesthat the student met the requirementsspecified by the institution in theacademic plan for the student.(d) Institutions that evaluatesatisfactory academic progress annuallyor less frequently than at the end <strong>of</strong>each payment period. (1) An institutionthat evaluates satisfactory academicprogress annually or less frequentlythan at the end <strong>of</strong> each payment periodand determines that a student is notmaking progress under its policy maynevertheless disburse title IV, HEAprogram funds to the student under theprovisions <strong>of</strong> paragraph (d)(2) or (d)(3)<strong>of</strong> this section.(2) The institution may place thestudent on financial aid probation andmay disburse title IV, HEA programfunds to the student for the subsequentpayment period if—(i) The institution evaluates thestudent and determines that the studentis not making satisfactory academicprogress;(ii) The student appeals thedetermination; and(iii)(A) The institution determinesthat the student should be able to bemake satisfactory academic progressduring the subsequent payment periodand meet the institution’s satisfactoryacademic progress standards at the end<strong>of</strong> that payment period; or(B) The institution develops anacademic plan for the student that, iffollowed, will ensure that the student isable to meet the institution’s satisfactoryacademic progress standards by aspecific point in time.(3) A student on financial aidprobation for a payment period may notreceive title IV, HEA program funds forthe subsequent payment period unlessthe student makes satisfactory academicprogress or the institution determinesthat the student met the requirementsspecified by the institution in theacademic plan for the student.(Authority: 20 U.S.C. 1091(d))■ 22. Section 668.43 is amended by:■ A. In paragraph (a)(10)(ii), removingthe word ‘‘and’’ that appears after thepunctuation ‘‘;’’.■ B. In paragraph (a)(11)(ii), removingthe punctuation ‘‘.’’ and adding, in itsplace, the punctuation and word ‘‘; and’’.■ C. Adding paragraph (a)(12).■ D. Revising paragraph (b).The addition and revision read asfollows:§ 668.43 Institutional information.(a) * * *(12) A description <strong>of</strong> writtenarrangements the institution has enteredinto in accordance with § 668.5,including, but not limited to,information on—(i) The portion <strong>of</strong> the educationalprogram that the institution that grantsthe degree or certificate is not providing;(ii) The name and location <strong>of</strong> theother institutions or organizations thatare providing the portion <strong>of</strong> theeducational program that the institutionthat grants the degree or certificate isnot providing;VerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00124 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2(iii) The method <strong>of</strong> delivery <strong>of</strong> theportion <strong>of</strong> the educational program thatthe institution that grants the degree orcertificate is not providing; and(iv) Estimated additional costsstudents may incur as the result <strong>of</strong>enrolling in an educational program thatis provided, in part, under the writtenarrangement.(b) The institution must makeavailable for review to any enrolled orprospective student upon request, acopy <strong>of</strong> the documents describing theinstitution’s accreditation and its State,Federal, or tribal approval or licensing.The institution must also provide itsstudents or prospective students withcontact information for filingcomplaints with its accreditor and withits State approval or licensing entity andany other relevant State <strong>of</strong>ficial oragency that would appropriately handlea student’s complaint.* * * * *■ 23. Subpart E <strong>of</strong> part 668 is revised toread as follows:Subpart E—Verification and Updating <strong>of</strong>Student Aid Application InformationSec.668.51 General.668.52 Definitions.668.53 Policies and procedures.668.54 Selection <strong>of</strong> an applicant’s FAFSAinformation for verification.668.55 Updating information.668.56 Information to be verified.668.57 Acceptable documentation.668.58 Interim disbursements.668.59 Consequences <strong>of</strong> a change in anapplicant’s FAFSA information.668.60 Deadlines for submittingdocumentation and the consequences <strong>of</strong>failing to provide documentation.668.61 Recovery <strong>of</strong> funds from interimdisbursements.Subpart E—Verification and Updating<strong>of</strong> Student Aid Application Information§ 668.51 General.(a) Scope and purpose. Theregulations in this subpart govern theverification by institutions <strong>of</strong>information submitted by applicants forstudent financial assistance under thesubsidized student financial assistanceprograms.(b) Applicant responsibility. If theSecretary or the institution requestsdocuments or information from anapplicant under this subpart, theapplicant must provide the specifieddocuments or information.(c) Foreign schools. The Secretaryexempts from the provisions <strong>of</strong> thissubpart participating institutions thatare not located in a State.(Authority: 20 U.S.C. 1094)
Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66955WReier-Aviles on DSKGBLS3C1PROD with RULES2§ 668.52 Definitions.The following definitions apply tothis subpart:Specified year: (1) The calendar yearpreceding the first calendar year <strong>of</strong> anaward year, i.e., the base year; or(2) The year preceding the yeardescribed in paragraph (1) <strong>of</strong> thisdefinition.Subsidized student financialassistance programs: Title IV, HEAprograms for which eligibility isdetermined on the basis <strong>of</strong> anapplicant’s EFC. These programsinclude the Federal Pell Grant, FederalSupplemental <strong>Education</strong>al OpportunityGrant (FSEOG), Federal Work-Study(FWS), Federal Perkins Loan, and DirectSubsidized Loan programs.Unsubsidized student financialassistance programs: Title IV, HEAprograms for which eligibility is notbased on an applicant’s EFC. Theseprograms include the Teacher <strong>Education</strong>Assistance for College and Higher<strong>Education</strong> (TEACH) Grant, DirectUnsubsidized Loan, and Direct PLUSLoan programs.(Authority: 20 U.S.C. 1094)§ 668.53 Policies and procedures.(a) An institution must establish anduse written policies and procedures forverifying an applicant’s FAFSAinformation in accordance with theprovisions <strong>of</strong> this subpart. Thesepolicies and procedures must include—(1) The time period within which anapplicant must provide anydocumentation requested by theinstitution in accordance with § 668.57;(2) The consequences <strong>of</strong> anapplicant’s failure to provide therequested documentation within thespecified time period;(3) The method by which theinstitution notifies an applicant <strong>of</strong> theresults <strong>of</strong> its verification if, as a result<strong>of</strong> verification, the applicant’s EFCchanges and results in a change in theamount <strong>of</strong> the applicant’s assistanceunder the title IV, HEA programs;(4) The procedures the institution willfollow itself or the procedures theinstitution will require an applicant t<strong>of</strong>ollow to correct FAFSA informationdetermined to be in error; and(5) The procedures for makingreferrals under § 668.16(g).(b) An institution’s procedures mustprovide that it will furnish, in a timelymanner, to each applicant whoseFAFSA information is selected forverification a clear explanation <strong>of</strong>—(1) The documentation needed tosatisfy the verification requirements;and(2) The applicant’s responsibilitieswith respect to the verification <strong>of</strong>FAFSA information, including thedeadlines for completing any actionsrequired under this subpart and theconsequences <strong>of</strong> failing to complete anyrequired action.(c) An institution’s procedures mustprovide that an applicant whose FAFSAinformation is selected for verification isrequired to complete verification beforethe institution exercises any authorityunder section 479A(a) <strong>of</strong> the HEA tomake changes to the applicant’s cost <strong>of</strong>attendance or to the values <strong>of</strong> the dataitems required to calculate the EFC.(Approved by the <strong>Office</strong> <strong>of</strong> Management andBudget under control number 1845–0041)(Authority: 20 U.S.C. 1094)§ 668.54 Selection <strong>of</strong> an applicant’s FAFSAinformation for verification.(a) General requirements. (1) Exceptas provided in paragraph (b) <strong>of</strong> thissection, an institution must require anapplicant whose FAFSA information isselected for verification by theSecretary, to verify the informationspecified by the Secretary pursuant to§ 668.56.(2) If an institution has reason tobelieve that an applicant’s FAFSAinformation is inaccurate, it must verifythe accuracy <strong>of</strong> that information.(3) An institution may require anapplicant to verify any FAFSAinformation that it specifies.(4) If an applicant is selected to verifyFAFSA information under paragraph(a)(1) <strong>of</strong> this section, the institutionmust require the applicant to verify theinformation as specified in § 668.56 ifthe applicant is selected for asubsequent verification <strong>of</strong> FAFSAinformation, except that the applicant isnot required to provide documentationfor the FAFSA information previouslyverified for the applicable award year tothe extent that the FAFSA informationpreviously verified remains unchanged.(b) Exclusions from verification. (1)An institution need not verify anapplicant’s FAFSA information if—(i) The applicant dies;(ii) The applicant does not receiveassistance under the title IV, HEAprograms for reasons other than failureto verify FAFSA information;(iii) The applicant is eligible toreceive only unsubsidized studentfinancial assistance; or(iv) The applicant who transfers to theinstitution, had previously completedverification at the institution fromwhich he or she transferred, and appliesfor assistance based on the same FAFSAinformation used at the previousinstitution, if the current institutionobtains a letter from the previousinstitution—VerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00125 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2(A) Stating that it has verified theapplicant’s information; and(B) Providing the transaction number<strong>of</strong> the applicable valid ISIR.(2) Unless the institution has reasonto believe that the information reportedby a dependent student is incorrect, itneed not verify the applicant’s parents’FAFSA information if—(i) The parents are residing in acountry other than the United Statesand cannot be contacted by normalmeans <strong>of</strong> communication;(ii) The parents cannot be locatedbecause their contact information isunknown and cannot be obtained by theapplicant; or(iii) Both <strong>of</strong> the applicant’s parents arementally incapacitated.(3) Unless the institution has reasonto believe that the information reportedby an independent student is incorrect,it need not verify the applicant’sspouse’s information if—(i) The spouse is deceased;(ii) The spouse is mentallyincapacitated;(iii) The spouse is residing in acountry other than the United Statesand cannot be contacted by normalmeans <strong>of</strong> communication; or(iv) The spouse cannot be locatedbecause his or her contact informationis unknown and cannot be obtained bythe applicant.(Approved by the <strong>Office</strong> <strong>of</strong> Management andBudget under control number 1845–0041)(Authority: 20 U.S.C. 1091, 1094)§ 668.55 Updating information.(a) If an applicant’s dependency statuschanges at any time during the awardyear, the applicant must update FAFSAinformation, except when the update isdue to a change in his or her maritalstatus.(b)(1) An applicant who is selected forverification <strong>of</strong> the number <strong>of</strong> persons inhis or her household (household size) orthe number <strong>of</strong> those in the householdwho are attending postsecondaryinstitutions (number in college) mustupdate those items to be correct as <strong>of</strong>the date <strong>of</strong> verification, except when theupdate is due to a change in his or hermarital status.(2) Notwithstanding paragraph (b)(1)<strong>of</strong> this section, an applicant is notrequired to provide documentation <strong>of</strong>household size or number in collegeduring a subsequent verification <strong>of</strong>either item if the information has notchanged.(c) An institution may require anapplicant to update FAFSA informationunder paragraph (a) or (b) <strong>of</strong> this sectionfor a change in the applicant’s maritalstatus if the institution determines the
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