Program Announcement and Proposed Funding Preferences for Scholarships for Disadvantaged Students

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources And Services Administration

RIN: 0905-ZA66

Program Announcement and Proposed Funding Preferences for

Scholarships for Disadvantaged Students

The Health Resources and Services Administration (HRSA) announces

that applications for fiscal year (FY) 1994 for the Scholarships for

Disadvantaged Students (SDS) program are being accepted under the

authority of section 737 of the Public Health Service Act (the Act),

title VII, Part B, as amended by the Health Professions Education

Extension Amendments of 1992, Pub. L. 102-408, dated October 13, 1992.

Comments are invited on the proposed funding preferences stated below.

Purpose

The SDS program is a program of grants to health professions and

nursing schools for the purpose of assisting such schools in providing

scholarships to individuals from disadvantaged background who are

enrolled (or accepted for enrollment) as full-time students in the

schools, as well as to undergraduate students who have demonstrated a

commitment to pursuing a career in health professions.

For purposes of the SDS program in FY 1994, an ``individual from

disadvantaged backgrounds'' is defined in 42 CFR part 57.1804, subpart

S, as one who:

(1) Comes from an environment that has inhibited the individual

from obtaining the knowledge, skill, and abilities required to enroll

in and graduate from a health professions school, or from a program

providing education or training in allied health professions; or

(2) Comes from a family with an annual income below a level based

low-income thresholds according to family size published by the U.S.

Bureau of the Census, adjusted annually for changes in the Consumer

Price Index, and adjusted by the Secretary for use in all health

professions and nursing programs. The Secretary will periodically

publish these low-income levels in the Federal Register.

The following income figures determine what constitutes a low-

income family for purposes of the Scholarships for Disadvantaged

Students program for FY 1994.

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Income

Size of parents' family\1\ level\2\

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1............................................................ $9,700

2............................................................ 12,600

3............................................................ 15,000

4............................................................ 19,200

5............................................................ 22,600

6 or more.................................................... 25,400

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\1\Includes only dependents listed on Federal income tax forms.

\2\Adjusted gross income for calendar year 1993, rounded to nearest

$100.

Approximately $17.1 million is available in FY 1994 for competing

applications for the SDS Program from eligible health professions and

nursing schools. Of the funds available, 30 percent shall be made

available to schools agreeing to expend the grants only for nursing

scholarships. An estimated $5.1 million will support approximately

2,040 scholarships averaging $2,500 for students at schools of nursing.

The balance of $12.0 million will support approximately 4,858

scholarships averaging $2,450 for eligible health professions students.

The period of fund availability will be for one academic year.

Use of Funds

Funds awarded to a school under this program may be used as

follows:

(1) To award scholarships to eligible students enrolled in the

school, to be expended only for tuition expenses, other reasonable

educational expenses, and reasonable living expenses (as defined by the

school for all students attending the school) incurred while enrolled

in a school as a full-time student. The amount of the scholarship may

not, for any year of attendance, exceed the total amount required for

the year for the expenses specified above.

(2) To provide financial assistance to undergraduate students who

have demonstrated a commitment to pursuing a career in the health

professions, in order to facilities the completion of the educational

requirements for such careers, provided that the total amount used for

this purpose may not exceed 25 percent of the funds awarded to the

school under this program.

Any school receiving SDS funds will be required to maintain

separate accountability for these funds.

School Eligibility

Grants under this program will be made available to accredited

public or nonprofit private health professions schools. For purposes of

the SDS program, as defined in section 737(a)(3) of the Act, the term

``health professions schools'' means schools of medicine, nursing,

osteopathic medicine, dentistry, pharmacy, podiatric medicine,

optometry, veterinary medicine, public health, or allied health or

schools offering graduate programs in clinical psychology and which are

accredited as provided in section 799(1)(E) of the Act, schools of

allied health as defined in section 799(4) of the Act, and which are

located in States as defined in section 799(9) of the Act, and schools

of nursing as defined in section 853 of the Act.

As required by statute, to qualify for participation in the SDS

program, a school must be:

(1) Carrying out a program for recruiting and retaining students

from disadvantaged backgrounds, including racial and ethnic minorities;

and

(2) Carrying out a program for recruiting and retaining minority

faculty.

In addition, each school that received funds in FY 1993 must

demonstrate in its fiscal year 1994 application that they are carrying

out all of the statutory requirements listed below:

(1) Ensure that adequate instruction regarding minority health

issues is provided for in the curricula of the school. This does not

include normal course work, that by definition includes minority health

issues (e.g., sickle cell anemia in a pathology class), but refers to

course work reflecting an institutional awareness of the special health

needs of minority populations;

(2) Enter into arrangements with one or more health clinics

providing services to a significant number of individuals who are from

disadvantaged backgrounds, including members of minority groups, for

the purpose of providing students of the school with experience in

providing clinical services to such individuals;

(3) Enter into arrangements with one or more public or nonprofit

private secondary educational institutions and undergraduate

institutions of higher education (feeder schools), for the purpose of

carrying out programs regarding:

(a) The educational preparation of disadvantaged students,

including minority students, to enter the health professions; and

(b) The recruitment of disadvantaged students, including minority

students, into the health professions; and

(4) Establish a mentor program for assisting disadvantaged

students, including minority students, regarding the completion of the

educational requirements for degrees from the school. This program may

include the involvement of students, community health professionals,

faculty, alumni, past recipients of Health Career Opportunity Program

(HCOP) funds, faculty/staff of feeder schools, etc., in institutionally

organized activity (e.g., tutoring, counseling, and summer/bridge

programs).

Each school funded for the first time in FY 1994 will also be

required to carry out each of the activities specified above by not

later than 12 months from receipt of award. Funds awarded to a school

under the SDS program may not be used to carry out any of the above

activities which the school must be doing, or must agree to do. In

addition, a school will be required to continue to carry out all

described activities, and also the student/faculty recruitment and

retention activities, for as long as the SDS program is in operation in

the school.

Evaluation Criteria for Fiscal Year 1994

For FY 1994, applications will be evaluated on the degree to which

the schools meet the statutory requirements listed above. Guidance for

presenting the information will be provided in the FY 1994 application

materials.

Student Eligibility: As required by statute, to qualify for the SDS

program, a student must:

(1) Be a citizen, a U.S. national, an alien lawfully admitted for

permanent residency in the U.S., or a citizen of the Commonwealth of

the Northern Mariana Islands, a citizen of the Commonwealth of Puerto

Rico, a citizen of the Trust Territory of the Pacific Islands

(consisting of the Republic of Palau) or a citizen of the Republic of

the Marshall Islands, the Federated States of Micronesia (both formally

part of the Trust Territory of the Pacific Islands);

(2) Meet the definition of an ``individual from a disadvantaged

background'' as defined above; and

(3) (a) Be enrolled in or accepted by an eligible school for

enrollment as a full-time student; or

(b) Be an undergraduate student who has demonstrated a commitment

to pursuing a career in health professions, including nursing.

Statutory Preference

The law requires that in providing SDS scholarships, the school

give preference to students who are from disadvantaged backgrounds and

for whom the cost of attending an SDS school would constitute a severe

financial hardship. Severe financial hardship will be determined by the

school in accordance with standard need analysis procedures prescribed

by the Department of Education for Its Federal student aid programs.

The following Acceptability of Undergraduate Students, Definitions,

Methodology for Implementing the Statutory Special Consideration, the

Nonstatutory Special Consideration for Baccalaureate Nursing Programs,

and the Procedures for Calculating Scholarship Awards were established

in FY 1991 after public comment (at 57 FR 49779) on October 1, 1991,

and are being extended in FY 1994.

Acceptability of Undergraduate Students

In the instance of (3)(b) above, it has been established that the

undergraduate students eligible for scholarships must be at feeder

schools and have signed statements that they are interested in health

professions or nursing careers.

Definitions

Black. means a person having origins in any of the black racial

groups of Africa.

Hispanic means a person of Mexican, Puerto Rican, Cuban, Central or

South American or other Spanish culture or origin, regardless of race.

American Indian or Alaskan Native means a person having origins in

any of the original peoples of North America, and who maintains

cultural identification through tribal affiliation or community

recognition.

Definitions listed above are contained in Directive No. 15 of

Office of Management and Budget Circular No. A-46, dated May 3, 1974.

Native American as defined in Pub. L. 101-527, means American

Indian, Alaskan Native, Aleut, or Native Hawaiian.

Minority with respect to faculty, refers to Blacks, Hispanics,

Native Americans, Filipinos, Koreans, Pacific Islanders, and Southeast

Asians whose percentage among the total supply of practitioners in the

applicable health profession is below that group's percentage in the

total population.

Methodology for Implementing the Statutory Special Consideration

In accordance with the statute, in making awards under section

737(a), the Secretary shall give special consideration to eligible

schools that have enrollments of underrepresented minorities above the

national average for its particular discipline.

For purposes of determining eligibility of a school, Asians will

not be included in the definition of underrepresented minorities for

the school. Although certain Asian subgroups (i.e., Filipinos, Koreans,

Pacific Islanders, and Southeast Asians) are considered to be

underrepresented in the health professions and are included as

minorities for purposes of program requirements relating to faculty

recruitment and retention (see above), national data on these subgroups

are not available as a basis for establishing national average

enrollment of underrepresented minorities.

For purposes of the FY 1994 award cycle, the national average

enrollments, of Blacks, Hispanics, and Native Americans (in

combination) are: for medicine 13.3 percent; osteopathic medicine 7.7

percent; nursing (RN only) 12.2 percent; dentistry 13.4 percent;

pharmacy 10.6 percent; optometry 9.4 percent; podiatric medicine 17.9

percent; veterinary medicine 5.9 percent; public health 15.7 percent;

allied health 17.3 percent; and clinical psychology 13 percent.

Nonstatutory Special Consideration for Baccalaureate Nursing

Programs

Among schools of nursing, additional special consideration will be

given to baccalaureate programs. One of the distinguishing features of

baccalaureate education is the substantial focus on preparation for

community health practice. Training nurses for community health

practice is an integral component of the Department's access strategy.

It is not required that applicants request consideration for a

funding factor. Applications which do not request consideration for

funding factors will be reviewed and given full consideration for

funding.

Procedures for Calculating Awards

Awards to eligible schools which have applied will be calculated by

comparing the enrollment of disadvantaged students in each eligible

school with the total enrollment of the disadvantaged students in all

eligible schools.

A school with an enrollment of underrepresented minority students

which is above the national average (for each discipline) will be given

double credit (i.e., its enrollment of disadvantaged students would be

doubled for awarding purposes). A baccalaureate nursing school will be

given double credit. A baccalaureate nursing school with an

underrepresented minority enrollment above the national average will be

given quadruple credit (i.e., its enrollment of disadvantaged students

will be multiplied by four for awarding purposes).

Other Consideration

Other funding factors may be applied in determining the funding of

approved applications.

A funding preference is defined as the funding of a specific

category or group of approved applications ahead of other categories or

groups of approved applications.

It is not required that applicants request consideration for a

funding factor. Applications which do not request consideration for

funding factors will be reviewed and given full consideration for

funding.

Proposed Funding Preferences

For fiscal year 1994, it is proposed that among allied health

schools or programs, preference be given to the following baccalaureate

and graduate programs: dental hygiene, medical laboratory technology,

occupational therapy, physical therapy and radiologic technology. This

proposal is in accordance with House Report No. 101-804, accompanying

the Disadvantaged Minority Health Improvement Act of 1990, which

recommended that funding be restricted to these allied health

professions programs. With over 3,000 accredited allied health

programs, the SDS program focus would be directed to those allied

health professions with the greatest current or personnel shortages.

In addition, it is also proposed that preference be given to

baccalaureate and graduate programs. Although programs of study leading

to the award of an associate degree or certificate are of significant

value in educating allied health personnel, the cost of education at

the baccalaureate and graduate levels is substantially greater, and

thus such cost is a major deterrent to the recruitment and retention of

disadvantaged individuals.

Additional Information

Interested persons are invited to comment on the proposed funding

preferences. The comment period is 30 days. All comments received on or

before (insert 30 days from date of publication in the Federal Register

will be considered before the final funding preferences are

established.

Written comments should be addressed to: Mr. Michael Heiningburg,

Director, Division of Student Assistance, Bureau of Health Professions,

Health Resources and Services Administration, 5600 Fishers Lane, Room

8-48, Parklawn Building, Rockville, Maryland 20782.

All comments received will be available for public inspection and

copying at the Division of Student Assistance, Bureau of Health

Professions, at the above address, weekdays (Federal holidays excepted)

between the hours of 8:30 a.m. and 5 p.m.

National Health Objectives for the Year 2000

The Public Health Service is committed to achieving the health

promotion and disease prevention objectives of Healthy People 2000, a

PHS-led national activity for setting priority areas. The Scholarships

for Students From Disadvantaged Backgrounds program is related to the

priority area of Educational and Community-Based Programs. Potential

applicants may obtain a copy of Healthy People 2000 (Full Report;

Stock No. 017-001-00474-0) or Healthy People 2000 (Summary Report;

Stock No. 017-001-00473-1) through the Superintendent of Documents,

Government Printing Office, Washington, DC 20402-9325 (Telephone (202)

783-3238).

Smoke-Free Workplace

The Public Health Service strongly encourages all grant recipients

to provide a smoke-free workplace and promote the non-use of all

tobacco products. This is consistent with the PHS mission to protect

and advance the physical and mental health of the American people.

Paperwork Reduction Act

The application form and instructions for this program have been

approved by the Office of Management and Budget (OMB) under the

Paperwork Reduction Act. The OMB clearance number is 0915-0149.

Application Requests

Applications will be mailed to all schools of medicine, osteopathic

medicine, dentistry, pharmacy, optometry, podiatric medicine,

veterinary medicine, nursing, public health, clinical psychology and

allied health which received SDS awards in FY 93. Upon request,

applications will be mailed to those schools identified above who have

not previously participated in the SDS program.

Requests for grant application materials and questions regarding

business management and program policy should be directed to: Mr. Bruce

Baggett, Chief, Student and Institutional Support Branch, Division of

Student Assistance, Bureau of Health Professions, Health Resources and

Services Administration, Parklawn Building, Room 8-34, 5600 Fishers

Lane, Rockville, Maryland 20857. Telephone: (301) 443-4776; FAX: (301)

594-6911.

The application deadline date is July 20, 1994. Applications shall

be considered as meeting the deadline if they are either:

(1) Received on or before the established deadline date, or

(2) Sent on or before the established deadline and received in time

for orderly processing. (Applicants should request a legibly dated U.S.

Postal Service postmark or obtain a legibly dated receipt from a

commercial carrier or the U.S. Postal Service. Private metered

postmarks shall not be acceptable as proof of timely mailing.)

Late applications not accepted for processing will be returned to

the applicant.

The Catalog of Federal Domestic Assistance Number for the

Scholarships for Disadvantaged Students program is 93.925. This program

is not subject to the provisions of Executive Order 12372,

Intergovernmental Review of Federal Programs (as implemented through 45

CFR part 100).

This program is not subject to the Public Health System Reporting

Requirements.

Dated: June 15, 1994.

Ciro V. Sumaya,

Administrator.

[FR Doc. 94-14964 Filed 6-17-94; 8:45 am]

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