Federal Family Education Loan Program; Proposed Rule

DEPARTMENT OF EDUCATION

34 CFR Part 682

RIN 1840-AB62

Federal Family Education Loan Program

AGENCY: Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes to amend the regulations governing the

Federal Family Education Loan (FFEL) Program. The FFEL Program consists

of the Federal Stafford, Federal Supplemental Loans for Students (SLS),

Federal PLUS, and the Federal Consolidation Loan programs. These

proposed regulations are needed to implement certain changes made to

the Higher Education Act of 1965, as amended (HEA), by the Higher

Education Amendments of 1992 (Pub. L. 102-325). Pub. L. 102-325 added

new section 428J to the HEA which authorizes the Secretary to establish

a demonstration program for loan forgiveness for certain types of

professional or public service. Minor changes to section 428J were made

by the National and Community Service Trust Act of 1993 (Pub. L. 103-

82). Section 428J was also recently amended by the Higher Education

Technical Amendments of 1993 (Pub. L. 103-208). Those additional

statutory changes are also reflected in these proposed rules. Under

section 428J of the HEA, the Secretary is authorized to forgive

portions of Federal Stafford Loans incurred by a student borrower who

performs volunteer service or works in certain teaching or nursing

areas. This program is not currently funded.

DATES: Comments must be received on or before March 28, 1994.

ADDRESSES: All comments concerning these proposed regulations should be

addressed to Patricia Newcombe, Acting Chief, FFEL Program Section,

Loans Branch, Division of Policy Development, Policy, Training, and

Analysis Service, U.S. Department of Education, 400 Maryland Avenue,

SW., (room 4310, ROB-3), Washington, DC 20202-5449.

A copy of any comments that concern information collection

requirements should also be sent to the Office of Management and Budget

at the address listed in the Paperwork Reduction Act section of the

preamble.

FOR FURTHER INFORMATION CONTACT: Barbara Bauman, Program Specialist,

Loans Branch, Division of Policy Development, Policy, Training, and

Analysis Service, U.S. Department of Education, 400 Maryland Avenue,

SW., (room 4310, ROB-3), Washington, DC 20202-5449. Telephone: (202)

708-8242. Individuals who use a telecommunications device for the deaf

(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-

877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through

Friday.

SUPPLEMENTARY INFORMATION:

Background

New section 428J of the HEA requires the Secretary to promulgate

regulations to establish a loan forgiveness demonstration program in

the Federal Stafford Loan Program. The purpose of the demonstration

program is to encourage individuals to enter the teaching and nursing

professions and to perform national and community service by offering

partial Federal Stafford loan forgiveness. The loan forgiveness program

is available only to new borrowers who, as of October 1, 1989, had no

outstanding debt on a FFEL Program loan.

Summary of Comments from Regional Meetings

In compliance with section 492(a) of the HEA, the Secretary

convened regional meetings during September 1992 to obtain public

involvement in the development of proposed regulations. The purpose of

the meetings was to ``provide for a comprehensive discussion and

exchange of information concerning the implementation'' of certain

parts of Pub. L. 102-325. In addition, attendees of the regional

meetings were asked to nominate individuals to act as negotiators in

the negotiated rulemaking process required by section 492(b) of the

HEA.

The regional meetings were conducted for two days each in San

Francisco, California; New York, New York; Atlanta, Georgia; and Kansas

City, Missouri. Each participant at the regional meetings was assigned

to one of six groups which were asked to discuss particular issue areas

identified by the Department. Each group at the regional meetings

prepared a report of its discussion and recommendations and those

reports were presented to the Department for consideration during the

preparation of the proposed regulations.

One of the groups at each regional meeting was asked to discuss the

loan forgiveness demonstration program established by section 428J of

the HEA. However, none of the groups discussed the program in much

detail. Each of the groups recommended that the Department implement

the demonstration program in the same way that the provisions for loan

cancellation for public service are implemented in the Perkins Loan

Program. The Department considered these comments in preparing draft

proposed regulations.

Negotiated Rulemaking

After completion of the regional meetings, the Department prepared

draft proposed regulations to implement the provisions of Pub. L. 102-

325 relating to the FFEL Program. In accordance with the requirements

of section 492(b) of the HEA, those regulations were submitted to a

negotiated rulemaking process. During the weeks of January 4-8 and

February 1-5, 1993, the Department met with negotiators selected from

among individuals nominated by attendees at the regional meetings.

The discussion below of the proposed regulations reflects those

areas where the negotiators reached a consensus and the proposed

regulations reflect that agreement. The discussion below also indicates

where consensus was not reached during the negotiations. However, the

negotiators did not choose to discuss every part of the proposed

regulations. Accordingly, the discussion below of those issues not

discussed during the negotiations reflects only the views of the

Secretary.

Proposed Regulations

The Secretary is proposing to amend 34 CFR part 682 to add a new

Sec. 682.215 to the regulations. These regulations are being proposed

if it becomes necessary to implement section 428J of the HEA that

authorizes a demonstration program under which certain Federal Stafford

loan borrowers may have a portion of their loan debt forgiven. Under

the program the Secretary may forgive a percentage of the loan debt

that accrued on Federal Stafford loans that were borrowed (1) during

the borrower's last two years of undergraduate education or, (2) for up

to two academic years, during which the borrower returned to an

institution of higher education after graduation from an institution of

higher education to obtain a teaching certificate or additional

certification. An eligible borrower may have a specific percentage of

his or her eligible loans forgiven for each year of service performed.

Borrower Eligibility

Under section 428J of the HEA, the borrower is eligible for loan

forgiveness if the borrower serves as: (1) A full-time teacher in

certain elementary and secondary schools teaching certain subjects; (2)

a full-time nurse in particular types of hospitals or health care

centers; (3) a volunteer under the Peace Corps Act or under the

Domestic Volunteer Service Act of 1973; or (4) a full-time employee of

a tax-exempt organization under section 501(c)(3) of the Internal

Revenue Code of 1986 who makes below the greater of the minimum wage or

the poverty line for a family of two. In defining the types of health

care facilities where an eligible borrower may work, the Secretary

consulted with staff members of the Department of Health and Human

Services. Definitions that apply to the teaching category were largely

extracted from 34 CFR 682.210(q) at the suggestion of the negotiators.

For the tax-exempt organization service forgiveness category, the

Secretary is requiring eligible borrowers to work for an organization

that serves low-income persons and communities to assist in eliminating

poverty and related conditions. In defining this area of service, the

Secretary remains consistent with existing deferment provisions for

full-time volunteer service in the FFEL Program. The Secretary believes

that loan forgiveness is the more desirable benefit and as such should

not be given to a borrower who would not otherwise meet the

requirements for deferment and repayment for the same service. The

proposed regulations would establish criteria and procedures governing

the application and eligibility process for the loan forgiveness under

the demonstration program.

To qualify for loan forgiveness, a borrower must be in repayment,

or in an authorized period of deferment or forbearance. During the

negotiated rulemaking sessions, there was considerable discussion

surrounding the issue of whether lenders should be required to

automatically grant administrative forbearance to those borrowers who

are serving in a capacity that meets the criteria of the new

Sec. 682.215 (e), (f) or (g) for loan forgiveness. The negotiators felt

that it was necessary to provide forbearance in cases where a borrower

does not qualify for a deferment but would seem to qualify for loan

forgiveness. Although the Secretary recognized at the time that

borrowers serving in the fields that qualify under Sec. 682.215 may be

receiving low wages, the Secretary acknowledged that Congress did not

provide a forbearance or deferment for borrowers in this program in the

law. However, as a result of changes made by Pub. L. 103-208, the law

now provides forbearance for borrowers who are engaged in qualifying

service.

As recommended by the negotiators, the proposed regulations provide

that a defaulted borrower is not eligible for loan forgiveness under

the demonstration program unless the borrower has made satisfactory

repayment arrangements for the defaulted loan or loans. However, the

forgiveness would apply only to the loan or loans that are not in

default.

Application

The Secretary is proposing that, to qualify for loan forgiveness

under the demonstration program, a borrower must submit to the

Secretary or his designee an application and any necessary supporting

documentation by October 1 of each year following the year served in

qualifying service as a full-time volunteer, full-time teacher or full-

time nurse. A concern expressed during the negotiated rulemaking

process was how the Secretary or his designee would accommodate any

incomplete applications submitted by borrowers by the due date. There

was no consensus among the negotiators as to whether a borrower who

does not have complete documentation submitted by the October 1

deadline should be allowed to later supply the missing documentation.

The Secretary is interested in receiving public comment as to what is

an acceptable time-frame in which to inform a borrower that additional

documentation is needed and to collect the information necessary to

complete the application.

The Secretary is proposing to allow borrowers who serve in more

than one qualifying organization to combine the time served in each

organization to satisfy the requirement that the borrower be employed

``full-time.'' The term ``full-time'' is not defined in section 428J of

the statute. However, the Secretary and the negotiators reached a

consensus that the term ``full-time,'' for purposes of these

regulations, be defined as the period of time generally accepted as the

industry standard for the given profession. It is the duty of the

authorizing official or officials (in the case of multiple employment

of the borrower) to certify the borrower's service on the application.

If a borrower combines employment to meet the full-time employment

definition, the borrower would be required to obtain a certification

from each employment facility's authorizing official. The Secretary

will make a final determination as to whether the borrower's certified

combined service amounts to full-time. The certification will cover the

year of service as defined in Sec. 682.215 (e), (f), and (g) for the

particular service category. A new application and certification is

required for each year of service that the borrower wishes to apply for

loan forgiveness.

The Secretary acknowledges that the statute originally indicated

that a borrower receiving loan forgiveness based on volunteer service

could become eligible for loan forgiveness after agreeing in writing to

volunteer, before service was completed. However, a consensus was

reached that the statute did not intend to treat borrowers differently

based on the type of service involved. Pub. L. 103-208 amended section

428J to be consistent with this approach. Therefore, the proposed

regulations provide that an eligible borrower may apply for the

forgiveness only after the year of service is completed.

The Secretary proposes that once a borrower has met the

requirements for forgiveness under Sec. 682.215 (e), (f) or (g) the

borrower will have a percentage of his or her loan forgiven based on

which year of service has been completed. A borrower who qualifies for

forgiveness under this demonstration program shall have 15 percent of

the total amount of Federal Stafford loans incurred during the

borrower's last two years of undergraduate education forgiven for the

borrower's service for each of the first two years of service, 20

percent of the total amount for each third and fourth year of service,

and 30 percent of such total amount for the fifth year of service.

Limitations

The Secretary believes that the intent of Congress in enacting

section 428J was to have the Secretary forgive 100 percent of a

borrower's loans received for the last 2 years of undergraduate

education by the end of a borrower's five-year period of service.

However, the Secretary and the negotiators were compelled at the outset

to consider the constraints associated with this program, since it is a

demonstration program with a defined appropriation. The negotiators

discussed the fact that the program may not have adequate funding to

provide the full annual forgiveness amounts to all borrowers who

qualify. The negotiators discussed a number of possible approaches to

selecting the borrowers who would be allowed to benefit from the

forgiveness program from among the eligible borrowers if adequate

funding is not available but did not reach consensus regarding the use

of a particular approach. However, Pub. L. 103-208 directs the

Secretary to provide loan forgiveness on a first-come, first-served

basis subject to the availability of appropriations. Accordingly, the

Secretary will make a determination on each application as it is

received and will use a first-come, first-served approach to award loan

forgiveness in the amounts provided by section 428J of the Act until

the amount of appropriated funds is exhausted.

Regulatory Flexibility Act Certification

The Secretary certifies that these proposed regulations would not

have a significant economic impact on a substantial number of small

entities. These proposed regulations will only affect a small

percentage of institutions that participate in the FFEL Program.

Paperwork Reduction Act of 1980

Section 682.215(c) contains an information collection requirement.

As required by the Paperwork Reduction Act of 1980, the Department of

Education will submit a copy of this section to the Office of

Management and Budget (OMB) for its review. (44 U.S.C. 3504(h))

Certain Federal Stafford loan borrowers are eligible to apply for

loan forgiveness under these regulations. The Department needs and uses

the information provided on the application to determine an

individual's eligibility for loan forgiveness.

Annual public reporting and recordkeeping burden for this

collection of information is estimated to average .25 of an hour per

response for 2000 respondents, including the time for reviewing

instructions, searching existing data sources, gathering and

maintaining the data needed, and reviewing the collection of

information.

Organizations and individuals desiring to submit comments on the

information collection requirements should direct them to the Office of

Information and Regulatory Affairs, room 3002, New Executive Office

Building, Washington, DC 20503; Attention: Dan Chenok.

Invitation to Comment

Interested persons are invited to submit comments and

recommendations regarding these proposed regulations.

All comments submitted in response to these proposed regulations

will be available for public inspection, during and after the comment

period, in room 4310, Regional Office Building 3, 7th and D Streets,

SW., Washington, DC between the hours of 8:30 a.m. and 4 p.m., Monday

through Friday of each week except federal holidays.

Assessment of Educational Impact

The Secretary particularly requests comments on whether the

proposed regulations in this document would require transmission of

information that is being gathered by or is available from any other

agency or authority of the United States.

List of Subjects in 34 CFR Part 682

Administrative practice and procedure, Colleges and universities,

Education, Loan programs-education, Reporting and recordkeeping

requirements, Student aid, Vocational education.

(Catalog of Federal Domestic Assistance Number 84.032, Federal

Family Education Loan Program)

Dated: February 17, 1994.

Richard W. Riley,

Secretary of Education.

The Secretary proposes to amend part 682 of title 34 of the Code of

Federal Regulations as follows:

PART 682--FEDERAL FAMILY EDUCATION LOAN PROGRAM

1. The authority citation for part 682 continues to read as

follows:

Authority: 20 U.S.C. 1071 to 1087-2, unless otherwise noted.

2. A new section 682.215 is added to read as follows:

Sec. 682.215 Federal Stafford Loan forgiveness demonstration program.

(a) General. The Federal Stafford Loan forgiveness demonstration

program is intended to encourage individuals to enter the teaching and

nursing professions and to perform national and community service.

Under this demonstration program, the Secretary repays portions of

Federal Stafford obligations that were incurred by a borrower during

the borrower's last two years of undergraduate education if that

borrower enters those professions or performs that service. For

purposes of this section, an eligible borrower is a borrower who, prior

to October 1, 1989, had no outstanding debt under the FFEL programs.

(b) Borrower eligibility; requirements for qualification. A

borrower may obtain loan forgiveness under this program if he or she is

employed as a full-time teacher in certain elementary and secondary

schools teaching certain subjects or as a full-time nurse in certain

types of hospitals or health care centers, or is serving as a volunteer

under the Peace Corps Act or under the Domestic Volunteer Service Act

of 1973, or is performing comparable service as a full-time employee of

a tax exempt organization under section 501(c)(3) of the Internal

Revenue Code of 1986. For purposes of this section, ``full-time'' means

the standard used by a State or profession in defining full-time

employment. For a borrower serving in more than one organization, the

determination of ``full-time'' is based on the combination of all

qualifying employment. A borrower who is in default on a FFEL loan and

has not made satisfactory repayment arrangements is not eligible for

forgiveness. However, if a borrower has made satisfactory repayment

arrangements on the loan or loans in default, the forgiveness applies

only to the loan or loans held by the holder that are not in default.

(c) Application. To qualify for the forgiveness program, an

eligible borrower shall apply to the Secretary or his designee by

October 1 of each year in writing on a form and according to procedures

established by the Secretary following the completed year of service.

Eligible borrowers will be chosen on a first-come, first-served basis

to participate and will receive forbearance for each year of service

for which forgiveness is requested.

(d) Limitation; Stafford forgiveness recipients. The total amount

of loans forgiven is limited to the amount of funds appropriated for

the fiscal year for the demonstration program.

(e) Borrower eligibility; teaching forgiveness. (1) To qualify for

teaching loan forgiveness under this section, a borrower must teach

full-time for a year (as defined by the jurisdiction in which the

borrower is employed) in a teacher shortage area as certified by the

authorizing official. For purposes of this paragraph a teacher is

teaching in a teacher shortage area if--

(i) The teacher teaches in a school that satisfies the criteria in

section 465(a)(2)(A) of the Act for loan cancellation for Perkins loan

recipients who teach in those schools; and

(ii) The teacher teaches mathematics, science, foreign languages,

special education, bilingual education or in any other field of

expertise where the State educational agency determines there is a

shortage of qualified teachers.

(2) The borrower, in the time frame provided under paragraph (c) of

this section, for the first year of service for which forgiveness is

requested, must provide to the Secretary or his designee--

(i) A statement by the chief administrative officer of the public

elementary or secondary school in which the borrower was teaching--

(A) Certifying the year that the borrower was employed as a full-

time teacher;

(B) Certifying which subject area listed in paragraph (e)(1)(ii) of

this section or designated by the state educational agency the borrower

taught; and

(C) Verifying that the borrower teaches or taught in a school that

satisfies the requirements of paragraph (e)(1)(i) of this section.

(ii) To continue to receive forgiveness in a subsequent year, the

borrower shall provide the Secretary or his designee with a statement

by the chief administrative officer of the public elementary or

secondary school in which the borrower was teaching, certifying--

(A) The dates of the year of service;

(B) That the borrower continued to be employed as a full-time

teacher; and

(C) That the borrower continued to meet the designated subject area

and school requirements specified in this section.

(f) Borrower eligibility; volunteer service forgiveness.

(1)(i) To qualify for the volunteer service loan forgiveness under

this paragraph, a borrower must serve as a full-time volunteer for at

least a year (defined as twelve consecutive months) under--

(A) The Peace Corps Act; or

(B) The Domestic Volunteer Service Act of 1973 (ACTION programs);

or

(ii) A borrower may also qualify for the volunteer service loan

forgiveness if the borrower performs service comparable to service

provided under paragraph (f)(1) of this section as a full-time employee

of an organization that is exempt from taxation under section 501(c)(3)

of the Internal Revenue Code of 1986, if the borrower does not receive

compensation that exceeds the greater of--

(A) The minimum wage rate described in section 6 of the Fair Labor

Standards Act of 1938; or

(B) An amount equal to 100 percent of the poverty line for a family

of two as defined in section 673(2) of the Community Services Block

Grant Act.

(2) To qualify under this paragraph, the borrower must--

(i) Work for an organization that provides services to low-income

persons and their communities to assist them in eliminating poverty and

poverty-related human, social, and environmental conditions; and

(ii) Not, as part of his or her duties, give religious instruction,

conduct worship services, engage in religious proselytizing, or engage

in fund-raising to support religious activities.

(3) The borrower, for the first year of service for which

forgiveness is requested under paragraphs (f)(1), (2), or (3) of this

section must provide to the Secretary or his designee a statement from

an authorized official of the organization or agency for whom the

borrower is working certifying--

(i) That the borrower has served in a job that satisfies the

requirements of this paragraph;

(ii) The date on which the borrower's service began; and

(iii) The date on which the borrower completed the year of service.

(4) To continue to receive loan forgiveness in a subsequent year

under this paragraph, the borrower must provide an additional statement

as described in this paragraph at the end of each additional year of

service.

(g) Borrower eligibility; nursing profession loan forgiveness. (1)

To qualify for the nursing profession loan forgiveness under this

paragraph, a borrower must be employed as a full-time nurse for a

public hospital, a rural health clinic, a migrant health center, an

Indian Health Service Health Center, an Indian Health Center, a Native

Hawaiian Health Center or for an acute care or long-term care facility.

(2) To qualify for loan forgiveness under this paragraph, a

borrower must provide to the Secretary or his designee--

(i) A statement from an authorized official where the borrower is

employed certifying that the borrower was employed as a full-time nurse

for a facility described in this section and served for the term of at

least one year (defined as twelve consecutive months);

(ii) The date on which the borrower's service began; and

(iii) The date on which the borrower's year of service ended.

(3) To continue to receive the forgiveness in a subsequent year

under this paragraph, the borrower must provide an additional statement

as described in this paragraph at the end of each additional year of

service.

(h) Forgiveness amounts. (1) The Secretary repays the holder a

percentage of the total amount of Stafford loans owed by the eligible

borrower during--

(i) The borrower's last 2 years of undergraduate education; or

(ii) The 2 academic years in which a borrower who was not already

participating in loan repayment pursuant to this section returned to an

institution of higher education for the purpose of obtaining a post

graduate teaching certificate or additional teacher certification.

(2) The Secretary repays loans on the following basis:

(i) 15 percent of the total original principal amount of Stafford

loans for the first or second year in which the borrower meets the

requirements of this section.

(ii) 20 percent of the total original principal amount for a third

or fourth year.

(iii) 30 percent of the total original principal amount for a fifth

year.

(3) The Secretary repays the holder for the amount of interest,

including capitalized interest, which accrued on the loan or loans

subject to forgiveness over the year.

(4) The amount of payments made by the Secretary under paragraphs

(h)(2)(i), (ii), and (iii) of this section may not exceed the sum of

the outstanding principal balance of the loan or loans subject to

forgiveness plus all interest payments made in accordance with

paragraph (h)(3) of this section.

(5) Payments received from a borrower who qualifies for loan

forgiveness under this section will not be returned.

(i) Definitions. The following definitions apply to this section:

Acute care facility means either a short-term care hospital in

which the average length of patient stay is less than 30 days, or a

short-term care hospital in which over 50% of all patients are admitted

to units where the average length of patient stay is less than 30 days.

Elementary school means a public day or public residential school

that provides elementary education, as determined under State law.

Indian Health Service Health Center means a health care facility

(whether operated directly by the Indian Health Service or operated by

a tribal contractor or grantee under the Indian Self-Determination

Act), that is physically separated from a hospital and that provides

one or more clinical treatment services, such as physician, dentist or

nursing services, available at least 40 hours a week for outpatient

care to persons of Indian or Alaska Native descent.

Long-term care facility means a facility that offers services

designed to provide diagnostic, preventive, therapeutic,

rehabilitative, supportive and maintenance services for individuals who

have chronic physical or mental impairments. This facility may have a

variety of institutional and non-institutional health settings,

including the home, and the goal of the service is to promote the

optimum level of physical, social and psychological functioning.

Native Hawaiian Health Center means an entity (as defined in

section 8 of the Native Hawaiian Health Care Act of 1988 (Pub. L. 100-

579)--

(1) That is organized under the laws of the State of Hawaii;

(2) That provides or arranges for health care services through

practitioners licensed by the State of Hawaii, if licensure

requirements are applicable;

(3) That is a public or private nonprofit entity; and

(4) In which Native Hawaiian health practitioners significantly

participate in the planning, management, monitoring, and evaluation of

health services.

Public hospital means a facility (as defined in 24 CFR 242.1)--

(1) Owned by a State or unit of local government or by an

instrumentality thereof, or owned by a public benefit corporation

established by a State or unit of local government or by an

instrumentality thereof;

(2) That provides community services for inpatient medical care of

the sick or injured (including obstetrical care);

(3) Where not more than 50 percent of the total patient days during

any year are customarily assignable to the categories of chronic

convalescent and rest, drug and alcoholic, epileptic, mentally

deficient, mental, nervous and mental, and tuberculosis; and

(4) That is licensed or regulated by the State (or, if there is no

State law providing for such licensing or regulation by the State, by

the municipality or other political subdivision in which the facility

is located).

Rural Health Clinic means an entity (as defined under section

1861(aa)(2) of the Social Security Act and in 42 CFR 491.2 that--

(1) Is primarily engaged in furnishing to outpatients, physicians'

services and services furnished by a physician assistant or by a nurse

practitioner, as well as those services and supplies covered under

sections 1861(s)(2)(A) and 1961(s)(10) of the Social Security Act;

(2) In the case of a facility that is not a physician-directed

clinic, has an arrangement (consistent with the provisions of State and

local law relative to the practice, performance, and delivery of health

services) with one or more physicians under which provision is made for

the periodic review by those physicians of covered services furnished

by physician assistants and nurse practitioners, the supervision and

guidance by such patients as may be necessary, and the availability of

those physicians for advice and assistance in the management of medical

emergencies, and in the case of the physician-directed clinic, has one

or more of its staff physicians perform the activities accomplished

through such an arrangement;

(3) Maintains clinical records on all patients;

(4) Has arrangements with one or more hospitals, having agreements

in effect under section 1866 of the Social Security Act, for the

referral and admission of patients requiring inpatient services or

diagnostic or other specialized services as are not available at the

clinic;

(5) Has written policies, that are developed with the advice of

(and with provision of review of those policies from time to time by) a

group of professional personnel, including one or more physicians and

one or more physician assistants or nurse practitioners, to govern

those services which it furnishes;

(6) Has a physician assistant or nurse practitioner responsible for

the execution of policies described in paragraph (5) of this definition

and relating to the provision of the clinic's services;

(7) Directly provides routine diagnostic services, including

clinical laboratory services, as prescribed in 42 CFR 491.2, and has

prompt access to additional diagnostic services from facilities meeting

requirements under title 42;

(8) In compliance with State and Federal law, has available for

administering to patients of the clinic at least such drugs and

biologicals as are determined under 42 CFR 491.2 to be necessary for

the treatment of emergency cases and has appropriate procedures or

arrangements for storing, administering, and dispensing any drugs and

biologicals;

(9) Has appropriate procedures for review of utilization of clinic

services to the extent that the Secretary determines to be necessary

and feasible; and

(10) Meets other requirements as the Secretary of Health and Human

Services may find necessary in the interest of the health and safety of

the individuals who are furnished services by the clinic.

Secondary school means a public day or public residential school

that provides secondary education, as determined under State law. In

the absence of applicable State law, the Secretary may determine, with

respect to that State, whether the term ``secondary school'' includes

education beyond the twelfth grade.

State education agency means the agency or official designated by

the Governor or by State law as being primarily responsible for the

State supervision of public elementary and secondary schools.

Teacher means a professional who provides direct and personal

services to students for their educational development through

classroom teaching.

(Authority: 20 U.S.C. 1071 to 1087-2)

[FR Doc. 94-4257 Filed 2-24-94; 8:45 am]

BILLING CODE 4000-01-P