Educational Opportunity Centers Program; Final Rule and Notice Inviting Applications DEPARTMENT OF EDUCATION

SUMMARY: The Secretary amends the regulations governing the Educational

Opportunity Centers program. The Educational Opportunity Centers

program is authorized under title IV of the Higher Education Act of

1965 (HEA), and these final regulations implement changes made to the

HEA by the Higher Education Amendments of 1992. In addition to

incorporating statutory changes, the regulations also clarify and

simplify requirements governing the program and revise one funding

criterion.

The purposes and allowable activities of the Educational

Opportunity Centers program support the National Education Goals.

Specifically, the program funds projects designed to improve the

academic competency of program participants (Goal #3).

DATES: These regulations take effect either 45 days after publication

in the Federal Register or later if the Congress takes certain

adjournments. If you want to know the effective date of these

regulations, call or write to the Department of Education contact

person. A document announcing the effective date will be published in

the Federal Register.

Applicability: The criteria listed under Sec. 644.22 will apply on

and after June 1, 1994. Until June 1, 1994, the existing criteria will

continue to apply.

FOR FURTHER INFORMATION CONTACT: Margaret A. Wingfield, U.S. Department

of Education, 400 Maryland Avenue, SW., room 5065, Washington, DC

20202-5249. Telephone: (202) 708-4804. 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: These regulations implement the Higher

Education Amendments of 1992 (Pub. L. 102-325, enacted July 23, 1992).

The Educational Opportunity Centers program provides grants to

institutions of higher education; public and private agencies and

organizations; combinations of institutions, agencies, and

organizations; and secondary schools under special circumstances. The

purposes of the program are to (1) provide information regarding

financial and academic assistance available for individuals who desire

to pursue a program of postsecondary education; and (2) assist

individuals in applying for admission to institutions that offer

programs of postsecondary education, including preparing necessary

applications for use by admissions and financial aid officers.

On October 26, 1993, the Secretary published a notice of proposed

rulemaking (NPRM) for this program in the Federal Register (58 FR

57704). The NPRM included a summary of regulations proposed to

implement statutory changes and other regulations proposed to clarify

and simplify requirements governing the program.

Analysis of Comments and Changes

In response to the Secretary's invitation in the NPRM, 45 persons

submitted comments on the proposed regulations. An analysis of the

comments and the changes that have been made in the regulations since

publication of the NPRM is published as an appendix to these final

regulations.

Major Changes in the Regulations

The major differences between the NPRM and these final regulations

are as follows:

1. Section 644.21 (Selection Criteria--Plan of Operation)

The criterion listed under Sec. 644.21(c)(5) has been modified to

encourage applicants to include information about their plan to

coordinate with other projects for disadvantaged students.

2. Section 644.30 (Allowable Costs)

Section 644.30 has been revised to include, as allowable costs,

transportation, lodging, and meals for project participants and staff

during visits to postsecondary institutions or for participation in

``College Day'' and career awareness activities. Also, fees for college

admissions applications and college entrance examination fees are now

permissible under certain circumstances.

3. Section 644.31 (Unallowable Costs)

This section has been revised to conform to the changes made in the

allowable costs section.

4. Section 644.32 (Recordkeeping)

The language in Sec. 644.32(d)(1) has been modified to lessen the

recordkeeping burden on grantees.

Intergovernmental Review

This program is subject to the requirement of Executive Order 12372

and the regulations in 34 CFR part 79. The objective of the Executive

order is to foster an intergovernmental partnership and a strengthened

federalism by relying on processes developed by State and local

governments for coordination and review of proposed Federal financial

assistance.

In accordance with the order, this document is intended to provide

early notification of the Department's specific plans and actions for

this program.

Assessment of Educational Impact

In the notice of proposed rulemaking, the Secretary requested

comments on whether the proposed regulations would require transmission

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

agency or authority of the United States.

Based on the response to the proposed rules and on its own review,

the Department has determined that the regulations in this document do

not require transmission of information that is being gathered or is

available from any other agency or authority of the United States.

List of Subjects in 34 CFR Part 644

Colleges and Universities, Education of disadvantaged, Grant

programs--education, Reporting and recordkeeping requirements,

Secondary education.

(Catalog of Federal Domestic Assistance Number 84.066 Educational

Opportunity Centers Program.)

Dated: January 10, 1994.

Richard W. Riley,

Secretary of Education.

The Secretary revises part 644 of title 34 of the Code of Federal

Regulations to read as follows:

PART 644--EDUCATIONAL OPPORTUNITY CENTERS

Subpart A--General

Sec.

644.1 What is the Educational Opportunity Centers program?

644.2 Who is eligible for a grant?

644.3 Who is eligible to participate in a project?

644.4 What services may a project provide?

644.5 How long is a project period?

644.6 What regulations apply?

644.7 What definitions apply?

Subpart B--Assurances

644.10 What assurances must an applicant submit?

Subpart C--How Does the Secretary Make a Grant?

644.20 How does the Secretary decide which new grants to make?

644.21 What selection criteria does the Secretary use?

644.22 How does the Secretary evaluate prior experience?

644.23 How does the Secretary set the amount of a grant?

Subpart D--What Conditions Must Be Met by a Grantee?

644.30 What are allowable costs?

644.31 What are unallowable costs?

644.32 What other requirements must a grantee meet?

Authority: 20 U.S.C. 1070a-11 and 1070a-16, unless otherwise

noted.

Subpart A--General

Sec. 644.1 What is the Educational Opportunity Centers program?

The Educational Opportunity Centers program provides grants for

projects designed to provide--

(a) Information regarding financial and academic assistance

available for individuals who desire to pursue a program of

postsecondary education; and

(b) Assistance to individuals in applying for admission to

institutions that offer programs of postsecondary education, including

assistance in preparing necessary applications for use by admissions

and financial aid officers.

(Authority: 20 U.S.C. 1070a-16)

Sec. 644.2 Who is eligible for a grant?

The following are eligible for a grant to carry out an Educational

Opportunity Centers project:

(a) An institution of higher education.

(b) A public or private agency or organization.

(c) A combination of the types of institutions, agencies, and

organizations described in paragraphs (a) and (b) of this section.

(d) A secondary school, under exceptional circumstances such as if

no institution, agency, or organization described in paragraphs (a) and

(b) of this section is capable of carrying out an Educational

Opportunity Centers project in the target area to be served by the

proposed project.

(Authority: 20 U.S.C. 1070a-11)

Sec. 644.3 Who is eligible to participate in a project?

(a) An individual is eligible to participate in an Educational

Opportunity Centers project if the individual meets all of the

following requirements:

(1)(i) Is a citizen or national of the United States;

(ii) Is a permanent resident of the United States;

(iii) Is in the United States for other than a temporary purpose

and provides evidence from the Immigration and Naturalization Service

of his or her intent to become a permanent resident;

(iv) Is a permanent resident of Guam, the Northern Mariana Islands,

or the Trust Territory of the Pacific Islands (Palau); or

(v) Is a resident of the Freely Associated States--the Federated

States of Micronesia or the Republic of the Marshall Islands.

(2)(i) Is at least 19 years of age; or

(ii) Is less than 19 years of age, and the individual cannot be

appropriately served by a Talent Search project under 34 CFR part 643,

and the individual's participation would not dilute the Educational

Opportunity Centers project's services to individuals described in

paragraph (a)(2)(i) of this section.

(3) Expresses a desire to enroll, or is enrolled, in a program of

postsecondary education, and requests information or assistance in

applying for admission to, or financial aid for, such a program.

(b) A veteran as defined in Sec. 644.7(b), regardless of age, is

eligible to participate in an Educational Opportunity Centers project

if he or she satisfies the eligibility requirements in paragraph (a) of

this section other than the age requirement in paragraph (a)(2) of this

section.

(Authority: 20 U.S.C. 1070a-11 and 1070a-16)

Sec. 644.4 What services may a project provide?

An Educational Opportunity Centers project may provide the

following services:

(a) Public information campaigns designed to inform the community

about opportunities for postsecondary education and training.

(b) Academic advice and assistance in course selection.

(c) Assistance in completing college admission and financial aid

applications.

(d) Assistance in preparing for college entrance examinations.

(e) Guidance on secondary school reentry or entry to a General

Educational Development (GED) program or other alternative education

program for secondary school dropouts.

(f) Personal counseling.

(g) Tutorial services.

(h) Career workshops and counseling.

(i) Mentoring programs involving elementary or secondary school

teachers, faculty members at institutions of higher education,

students, or any combination of these persons.

(j) Activities described in paragraphs (a) through (i) of this

section that are specifically designed for students of limited English

proficiency.

(k) Other activities designed to meet the purposes of the

Educational Opportunity Centers program stated in Sec. 644.1.

(Authority: 20 U.S.C. 1070a-16)

Sec. 644.5 How long is a project period?

(a) Except as provided in paragraph (b) of this section, a project

period under the Educational Opportunity Centers program is four years.

(b) The Secretary approves a project period of five years for

applications that score in the highest ten percent of all applications

approved for new grants under the criteria in Sec. 644.21.

(Authority: 20 U.S.C. 1070a-11)

Sec. 644.6 What regulations apply?

The following regulations apply to the Educational Opportunity

Centers program:

(a) The Education Department General Administrative Regulations

(EDGAR) as follows:

(1) 34 CFR Part 74 (Administration of Grants to Institutions of

Higher Education, Hospitals, and Nonprofit Organizations).

(2) 34 CFR Part 75 (Direct Grant Programs), except for Sec. 75.511.

(3) 34 CFR Part 77 (Definitions that Apply to Department

Regulations), except for the definition of ``secondary school'' in

Sec. 77.1.

(4) 34 CFR Part 79 (Intergovernmental Review of Department of

Education Programs and Activities).

(5) 34 CFR Part 82 (New Restrictions on Lobbying).

(6) 34 CFR Part 85 (Governmentwide Debarment and Suspension

(Nonprocurement) and Governmentwide Requirements for Drug-Free

Workplace (Grants)).

(7) 34 CFR Part 86 (Drug-Free Schools and Campuses).

(b) The regulations in this part 644.

(Authority: 20 U.S.C. 1070a-11 and 1070a-16)

Sec. 644.7 What definitions apply?

(a) Definitions in EDGAR. The following terms used in this part are

defined in 34 CFR 77.1:

Applicant

Application

Budget

Budget period

EDGAR

Equipment

Facilities

Fiscal year

Grant

Grantee

Private

Project

Project period

Public

Secretary

Supplies

(b) Other definitions. The following definitions also apply to this

part:

HEA means the Higher Education Act of 1965, as amended.

Institution of higher education means an educational institution as

defined in sections 1201(a) and 481 of the HEA.

Low-income individual means an individual whose family's taxable

income did not exceed 150 percent of the poverty level amount in the

calendar year preceding the year in which the individual initially

participated in the project. The poverty level amount is determined by

using criteria of poverty established by the Bureau of the Census of

the U.S. Department of Commerce.

Participant means an individual who--

(i) Is determined to be eligible to participate in the project

under Sec. 644.3; and

(ii) Receives project services.

Postsecondary education means education beyond the secondary school

level.

Potential first-generation college student means--

(i) An individual neither of whose parents received a baccalaureate

degree; or

(ii) An individual who regularly resided with and received support

from only one parent and whose supporting parent did not receive a

baccalaureate degree.

Secondary school means a school that provides secondary education

as determined under State law, except that it does not include

education beyond grade 12.

Target area means a geographic area served by an Educational

Opportunity Centers project.

Veteran means a person who served on active duty as a member of the

Armed Forces of the United States--

(i) For a period of more than 180 days, any part of which occurred

after January 31, 1955, and who was discharged or released from active

duty under conditions other than dishonorable; or

(ii) After January 31, 1955, and who was discharged or released

from active duty because of a service-connected disability.

(Authority: 20 U.S.C. 1070a-11, 1070a-16, and 1141)

Subpart B--Assurances

Sec. 644.10 What assurances must an applicant submit?

An applicant shall submit, as part of its application, assurances

that--

(a) At least two-thirds of the individuals it serves under its

proposed Educational Opportunity Centers project will be low-income

individuals who are potential first-generation college students;

(b) Individuals who are receiving services from another Educational

Opportunity Centers project or a Talent Search project under 34 CFR

Part 643 will not receive services under the proposed project;

(c) The project will be located in a setting or settings accessible

to the individuals proposed to be served by the project; and

(d) If the applicant is an institution of higher education, it will

not use the project as a part of its recruitment program.

(Authority: 20 U.S.C. 1070a-16)

Subpart C--How Does the Secretary Make a Grant?

Sec. 644.20 How does the Secretary decide which new grants to make?

(a) The Secretary evaluates an application for a new grant as

follows:

(1)(i) The Secretary evaluates the application on the basis of the

selection criteria in Sec. 644.21.

(ii) The maximum score for all the criteria in Sec. 644.21 is 100

points. The maximum score for each criterion is indicated in

parentheses with the criterion.

(2)(i) For an application for a new grant to continue to serve

substantially the same populations or campuses that the applicant is

serving under an expiring project, the Secretary evaluates the

applicant's prior experience in delivering services under the expiring

project on the basis of the criteria in Sec. 644.22.

(ii) The maximum score for all the criteria in Sec. 644.22 is 15

points. The maximum score for each criterion is indicated in

parentheses with the criterion.

(3) The Secretary awards additional points equal to 10 percent of

the application's score under paragraphs (a) (1) and (2) of this

section to an application for a project in Guam, the Virgin Islands,

American Samoa, the Trust Territory of the Pacific Islands (Palau), or

the Northern Mariana Islands if the applicant meets the requirements of

subparts A, B, and D of this part.

(b) The Secretary makes new grants in rank order on the basis of

the applications' total scores under paragraphs (a) (1) through (3) of

this section.

(c) If the total scores of two or more applications are the same

and there are insufficient funds for these applications after the

approval of higher-ranked applications, the Secretary uses the

remaining funds to serve geographic areas and eligible populations that

have been underserved by the Educational Opportunity Centers program.

(d) The Secretary may decline to make a grant to an applicant that

carried out a project that involved the fraudulent use of funds under

section 402A(c)(2)(B) of the HEA.

(Authority: 20 U.S.C. 1070a-11, 1070a-16, and 1144a(a))

Sec. 644.21 What selection criteria does the Secretary use?

The Secretary uses the following criteria to evaluate an

application for a new grant:

(a) Need for the project (24 points). The Secretary evaluates the

need for an Educational Opportunity Centers project in the proposed

target area on the basis of the extent to which the application

contains clear evidence of--

(1) A high number or percentage, or both, of low-income families

residing in the target area;

(2) A high number or percentage, or both, of individuals residing

in the target area with education completion levels below the

baccalaureate level;

(3) A high need on the part of residents of the target area for

further education and training from programs of postsecondary education

in order to meet changing employment trends; and

(4) Other indicators of need for an Educational Opportunity Centers

project, including the presence of unaddressed educational or

socioeconomic problems of adult residents in the target area.

(b) Objectives (8 points). The Secretary evaluates the quality of

the applicant's proposed project objectives on the basis of the extent

to which they--

(1) Include both process and outcome objectives relating to each of

the purposes of the Educational Opportunity Centers program stated in

Sec. 644.1;

(2) Address the needs of the target area;

(3) Are clearly described, specific, and measurable; and

(4) Are ambitious but attainable within each budget period and the

project period given the project budget and other resources.

(c) Plan of operation (30 points). The Secretary evaluates the

quality of the applicant's plan of operation on the basis of the

following:

(1) (4 points) The plan to inform the residents, schools, and

community organizations in the target area of the goals, objectives,

and services of the project and the eligibility requirements for

participation in the project;

(2) (4 points) The plan to identify and select eligible

participants and ensure their participation without regard to race,

color, national origin, gender, or disability;

(3) (2 points) The plan to assess each participant's need for

services provided by the project;

(4) (12 points) The plan to provide services that meet

participants' needs and achieve the objectives of the project; and

(5) (8 points) The management plan to ensure the proper and

efficient administration of the project including, but not limited to,

the project's organizational structure, the time committed to the

project by the project director and other personnel, and, where

appropriate, its coordination with other projects for disadvantaged

students.

(d) Applicant and community support (16 points). The Secretary

evaluates the applicant and community support for the proposed project

on the basis of the extent to which the applicant has made provision

for resources to supplement the grant and enhance the project's

services, including--

(1) (8 points) Facilities, equipment, supplies, personnel, and

other resources committed by the applicant; and

(2) (8 points) Resources secured through written commitments from

schools, community organizations, and others.

(e) Quality of personnel (9 points). (1) The Secretary evaluates

the quality of the personnel the applicant plans to use in the project

on the basis of the following:

(i) The qualifications required of the project director.

(ii) The qualifications required of each of the other personnel to

be used in the project.

(iii) The plan to employ personnel who have succeeded in overcoming

the disadvantages or circumstances like those of the population of the

target area.

(2) In evaluating the qualifications of a person, the Secretary

considers his or her experience and training in fields related to the

objectives of the project.

(f) Budget (5 points). The Secretary evaluates the extent to which

the project budget is reasonable, cost-effective, and adequate to

support the project.

(g) Evaluation plan (8 points). The Secretary evaluates the quality

of the evaluation plan for the project on the basis of the extent to

which the applicant's methods of evaluation--

(1) Are appropriate to the project's objectives;

(2) Provide for the applicant to determine, using specific and

quantifiable measures, the success of the project in--

(i) Making progress toward achieving its objectives (a formative

evaluation); and

(ii) Achieving its objectives at the end of the project period (a

summative evaluation); and

(3) Provide for the disclosure of unanticipated project outcomes,

using quantifiable measures if appropriate.

(Approved by the Office of Management and Budget under control

number 1840-0065)

(Authority: 20 U.S.C. 1070a-16)

Sec. 644.22 How does the Secretary evaluate prior experience?

(a) In the case of an application described in

Sec. 644.20(a)(2)(i), the Secretary reviews information relating to an

applicant's performance under its expiring Educational Opportunity

Centers project. This information includes performance reports, audit

reports, site visit reports, and project evaluation reports.

(b) The Secretary evaluates the applicant's prior experience in

delivering services on the basis of the following criteria:

(1) (3 points) (i) Whether the applicant provided services to the

required number of participants who resided in the target area; and

(ii) Whether two-thirds of all participants served were low-income

individuals and potential first-generation college students.

(2) (6 points) The extent to which the applicant met or exceeded

its objectives regarding the provision of assistance to individuals in

applying for admission to, or financial aid for, programs of

postsecondary education.

(3) (6 points) The extent to which the applicant met or exceeded

its objectives regarding the admission or reentry of participants to

programs of postsecondary education.

(Approved by the Office of Management and Budget under control

number 1840-0065)

(Authority: 20 U.S.C. 1070a-16)

Sec. 644.23 How does the Secretary set the amount of a grant?

(a) The Secretary sets the amount of a grant on the basis of--

(1) 34 CFR 75.232 and 75.233, for new grants; and

(2) 34 CFR 75.253, for the second and subsequent years of a project

period.

(b) If the circumstances described in section 402A(b)(3) of the HEA

exist, the Secretary uses the available funds to set the amount of the

grant beginning in fiscal year 1994 at the lesser of--

(1) $180,000; or

(2) The amount requested by the applicant.

(Authority: 20 U.S.C. 1070a-11)

Subpart D--What Conditions Must Be Met by a Grantee?

Sec. 644.30 What are allowable costs?

The cost principles that apply to the Educational Opportunity

Centers program are in 34 CFR part 74, subpart Q. Allowable costs

include the following if they are reasonably related to the objectives

of the project:

(a) Transportation, meals, and, with specific prior approval of the

Secretary, lodging for participants and staff for--

(1) Visits to postsecondary educational institutions to obtain

information relating to the admission of participants to those

institutions;

(2) Participation in ``College Day'' activities; and

(3) Field trips to observe and meet with people who are employed in

various career fields in the target area and who can serve as role

models for participants.

(b) Purchase of testing materials.

(c) Fees required for college admissions of entrance examinations

if--

(1) A waiver is unavailable; and

(2) The fee is paid by the grantee to a third party on behalf of a

participant.

(d) In-service training of project staff.

(e) Rental of space if--

(1) Space is not available at the site of the grantee; and

(2) The rented space is not owned by the grantee.

(f) Purchase of computer hardware, computer software, or other

equipment for student development, project administration, and

recordkeeping, if the applicant demonstrates to the Secretary's

satisfaction that the equipment is required to meet the objectives of

the project more economically or efficiently.

(Authority: 20 U.S.C. 1070a-11 and 1070a-16)

Sec. 644.31 What are unallowable costs?

Costs that are unallowable under the Educational Opportunity

Centers program include, but are not limited to, the following:

(a) Tuition, fees, stipends, and other forms of direct financial

support for participants.

(b) Research not directly related to the evaluation or improvement

of the project.

(c) Construction, renovation, and remodeling of any facilities.

(Authority: 20 U.S.C. 1070a-11 and 1070a-16)

Sec. 644.32 What other requirements must a grantee meet?

(a) Eligibility of participants. (1) A grantee shall determine the

eligibility of each participant in the project at the time that the

individual is selected to participate.

(2) A grantee shall determine the status of a low-income individual

on the basis of the documentation described in section 402A(e) of the

HEA.

(b) Number of participants. In each budget period, a grantee shall

serve a minimum of 1,000 participants who reside in the target area.

However, the Secretary may reduce the minimum number of these

participants if the amount of the grant for the budget period is less

than $180,000.

(c) Recordkeeping. For each participant, a grantee shall maintain a

record of--

(1) The basis for the grantee's determination that the participant

is eligible to participate in the project under Sec. 644.3;

(2) The services that are provided to the participant; and

(3) The specific educational benefits received by the participant.

(d) Project director. (1) A grantee shall employ a full-time

project director unless paragraph (d)(3) of this section applies.

(2) The grantee shall give the project director sufficient

authority to administer the project effectively.

(3) The Secretary waives the requirement in paragraph (d) (1) of

this section if the applicant demonstrates that the requirement will

hinder coordination--

(i) Among the Federal TRIO Programs (sections 402A through 402F of

the HEA); or

(ii) Between the programs funded under sections 402A through 410 of

the HEA and similar programs funded through other sources.

(Approved by the Office of Management and Budget under control

number 1840-0065)

(Authority: 20 U.S.C. 1070a-11 and 1070a-16).

Note: This appendix will not be codified in the Code of Federal

Regulations.

Appendix--Analysis of Comments and Responses

The following is an analysis of the comments and changes in the

regulations since the publication of the NPRM on October 26, 1993 (58

FR 57704). Substantive issues are discussed under the section of the

regulations to which they pertain. Minor changes--and suggested changes

that the Secretary is not legally authorized to make under applicable

statutes--are not generally addressed.

How long is a project period? (Sec. 644.6)

Comment: One commenter suggested that the Secretary change the

regulations so that a competition for Educational Opportunity Center

(EOC) grants would be held once every two years. The commenter noted

that such a schedule would be more efficient than a 4-year schedule

and would be more fair because applicants who were not funded could

reapply more quickly.

Discussion: The length of EOC project periods is prescribed in

the Higher Education Act. Section 644.6 of these regulations merely

reflects the statutory requirement.

Changes: None.

What selection criteria does the Secretary use? (Sec. 644.21)

Comment: Several commenters recommended that Sec. 644.21(c)(5)

be changed to require the Secretary to consider an applicant's plan

to coordinate its EOC project with other projects that serve

disadvantaged students. The commenters maintained that allotting

points based on such a plan would encourage coordination among

projects. Some commenters offered specific langauge suggesting that

the Secretary evaluate an applicant's plan of operation based in

part on ``the plan, including the project's organization structure,

its coordination with other programs for disadvantaged students

sponsored by the sponsoring entity, and the time committed to the

project by administrative and other staff, to ensure the proper and

efficient administration of the project.''

Discussion: The Secretary agrees that an applicant's plan to

coordinate activities with other projects should be considered in

the selection criteria and that such consideration will encourage

coordination. However, the Secretary recognizes that in some cases

an EOC project may be the only project for disadvantaged students

administered by a particular institution or agency. Therefore, the

Secretary has adopted much of the suggested language but has

included the modifier ``where appropriate'' to ensure that

applicants who administer only an EOC project will not be

disadvantaged by their inability to coordinate with other projects.

Changes: Section 644.21(c)(5) has been changed to read: ``The

management plan to ensure the proper and efficient administration of

the project including, but not limited to, the project's

organizational structure, the time committed to the project by the

project director and other personnel, and, where appropriate, its

coordination with other projects for disadvantaged students.''

How does the Secretary evaluate prior experience? (Sec. 644.22)

Comment: Many commenters suggested that the Secretary change

Sec. 644.22, relating to prior experience points. None of the

commenters asked the Secretary to change the wording of the

criteria; all requested that the Secretary describe in greater

detail how the criteria are applied. Some commenters argued the

regulations should require the Secretary to notify grantees as to

the number of points they received for prior experience before the

funding determinations are made. Commenters argued that such a

procedure would allow grantees to ``correct errors'' in the

Secretary's evaluation of their prior experience. Other commenters

suggested that the regulations should require the Secretary to award

a portion of the prior experience points each year based on a

grantee's annual performance report. They suggested that each

grantee should be informed within a specified period as to how well

each performance report was scored.

Commenters also noted that the regulations should require the

Secretary to award prior experience points based only on a grantee's

performance during the first two years of its grant. This procedure,

they argued, would ensure that a grantee's prior experience would be

measured against actual outcomes rather than speculation about what

the grantee is likely to have accomplished by the end of the project

period. Several commenters offered suggestions on how prior

experience points should be allocated under the two-year evaluation

schedule.

Discussion: The comments suggest a high degree of anxiety over

how the Secretary rates prior experience. The comments imply that

the assessment process should be continuous, extensive, and

interactive. The Secretary, however, has no intention of

unnecessarily burdening grantees with such a process. Under

Sec. 644.20(2)(i) of the regulations, the Secretary only evaluates

prior experience when a grantee submits an application for ``a new

grant to continue to serve substantially the same populations or

campuses that the applicant is serving under an expiring grant.''

Prior experience is not evaluated until the Secretary receives such

an application. This procedure reflects the mandate expressed in

section 402(A)(c)(1) of the Higher Education Act, which states: ``In

making grants * * * the Secretary shall consider prior experience.''

The law requires the Secretary to evaluate prior experience only

when the Secretary is deciding to make a grant; the Secretary only

decides to make a grant if an application has been submitted. Thus,

the final assessment of prior experience is conducted as part of the

overall process for selecting new grants. This process begins when

applications are received and ends when applicants are notified of

the Secretary's funding decisions.

The application process is not an interactive process. After the

closing date, no additional information is accepted or considered.

Therefore, any information that an applicant feels should be

considered during the course of the selection process should be

provided before the closing date. The Secretary does not disclose

information relating to the rank of applications until all

applicants are notified of the Secretary's funding decisions. After

applicants receive notification, they may request copies of

documents that reflect the prior experience assessments.

Changes: None.

What are allowable costs? (Sec. 644.30)

Comment: Many commenters suggested that the Secretary amend

Sec. 644.30 of the proposed regulations to include college admission

fees and college entrance examination fees in the list of allowable

costs. The commenters noted that many adult EOC participants cannot

afford to pay examination and application fees and are therefore

discouraged from pursuing postsecondary education.

Discussion: The Secretary agrees that admission fees should be

included in the list of allowable costs because some adult

participants may be discouraged from applying to postsecondary

institutions because of the expense associated with examination and

application fees. However, the Secretary strongly encourages

Educational Opportunity Centers to work with higher educational

institutions to secure waivers whenever possible. Further,

application fees will not be an allowable cost under Sec. 644.30 if

the fee is paid to the grantee institution because the Secretary

encourages grantees to provide meaningful support to the Educational

Opportunity Centers that they administer.

Changes: The Secretary has changed Sec. 644.30 so that the list

of allowable costs includes fees required for college admissions

applications or entrance examination fees if (1) a waiver of the fee

is unavailable; and (2) the fee is paid by the grantee to a third

party on behalf of a participant.

What are unallowable costs? (Sec. 644.31)

Comment: Many commenters requested that the Secretary remove

transportation, meals, and lodging from the list of unallowable

costs in Sec. 644.31. The commenters further requested that the

Secretary include transportation, meals, and lodging in the list of

allowable costs in Sec. 644.30. Several commenters argued that

campus visits are necessary to help participants choose an

appropriate postsecondary placement. Other commenters noted that

such visits are often impossible for EOC participants who reside in

rural areas. Finally, some commenters argued that transportation,

meals, and lodging should be allowable costs because they are

allowable under the Talent Search program.

Discussion: The Secretary believes that college visits are often

necessary to help adult participants gain the confidence and insight

that they need to feel comfortable in applying for college

admission. The Secretary agrees with the commenters that it would be

unfortunate if the cost of such visitations prevented some

participants from pursuing postsecondary education. Therefore, on a

case-by-case basis, transportation, lodging, and meals may be

allowable costs under the circumstances described in the

regulations.

Changes: The Secretary has removed transportation, lodging, and

meals from the list of unallowable costs in Sec. 644.31. The

Secretary has also changed Sec. 644.30 so that the list of allowable

costs includes: ``(a) Transportation, meals, and, with specific

prior approval of the Secretary, lodging for participants and staff

for--(1) Visits to postsecondary educational institutions to obtain

information relating to the admission of participants to those

institutions; (2) Participation in ``College Day'' activities; and

(3) Field trips to observe and meet with people who are employed in

various career fields in the target area and who can act as role

models for participants.''

What other requirements must a grantee meet? (Sec. 644.32)

Comment: Some commenters suggested that the Secretary should

change Sec. 644.32(d)(1) to read: ``Unless a part-time director

furthers coordination of the project with other programs for

disadvantaged clients operated by the sponsoring institution or

agency, or unless a waiver is granted, a grantee shall employ a

full-time project director.'' The commenters argued that the change

was necessary because the language in the NPRM does not reflect the

intent of the 1992 Amendments to the Higher Education Act, which

requires the Secretary to encourage coordination among TRIO programs

and other programs for disadvantaged students and to allow for a

less-than-full-time director.

One commenter recommended that the Secretary require a full-time

project director at all Educational Opportunity Centers. The

commenter noted that the degree of detail to which a director must

be attentive requires a full-time commitment. The commenter further

suggested that coordination among projects is desirable and can be

accomplished when various directors work together for the mutual

benefit of all projects on a single campus.

Discussion: The Secretary strongly supports coordination of EOC

activities between and among projects to extent that the

coordination fosters--

(1) Improved services for the EOC participants;

(2) More efficient or effective means of delivering services; or

(3) An increase in the resources available to participants.

There is no magic formula for coordination. It only occurs when

all partners see it in their best interest to cooperate and

coordinate activities to obtain some beneficial objectives. Projects

do not have to share staff to coordinate activities. Coordination

can occur in a number of ways by staff at all levels. Having a part-

time director does not guarantee that coordination of activities

will occur. Having a full-time director does not guarantee that the

coordination of activities will not occur.

Each project is different in terms of its setting, resources,

and support systems. The Secretary recognizes that a project may

effectively operate with less than a full-time director if other

support personnel are in place to assist in shared management

duties. However, coordination can take many other forms. For

example, coordination may be achieved by planning and conducting

joint or cooperative field trips, lectures, career days, or test-

preparation sessions. Coordination may also be achieved by sharing

space or equipment.

Section 644.32(d)(1) accurately reflects both the intent of the

1992 Amendments to the HEA and the Secretary's commitment to

coordination. Waivers of the requirement for a full-time director

are available under Sec. 644.32(d)(3) if an applicant can show that

efforts to coordinate among projects will be hindered by not

allowing one person to direct more than one project.

The Secretary believes that in many cases the size and scope of

an EOC project require the attention of a full-time director. The

average EOC project receives more than a million dollars over the

course of a project period and serves more than eight thousand

participants. Given the size and scope of EOC projects, the

Secretary believes that the appropriateness of allowing a part-time

director must be evaluated with great care.

Changes: None.

Comment: Several commenters suggested that the Secretary should

change Sec. 644.32(c)(3), relating to records of educational

benefits. The commenters requested that the Secretary eliminate the

phrase ``the specific educational benefits to the participants that

resulted from the services'' because keeping a record of how each

participant benefited from the services would be too burdensome. The

commenters suggested that Sec. 644.32(c)(3) require only that

grantees keep a record of ``the specific educational benefits

received by the participant.''

One commenter suggested that the Secretary should not change the

recordkeeping requirement in Sec. 644.32(c)(3) because it formed the

basis for collecting valuable statistics.

Discussion: The Secretary agrees that the phrase ``that resulted

from the services'' implies that a grantee must demonstrate and

record a causal relationship between services and benefits. The

Secretary believes that such a record is not necessary to indicate a

benefit, particularly in instances where the services provided can

be deemed to be benefits in and of themselves.

Changes: The recordkeeping requirement at Sec. 644.32(c)(3) is

changed to read ``the specific educational benefits received by the

participant.''

[FR Doc. 94-903 Filed 1-14-94; 8:45 am]

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