Indian Fellowship and Professional Development Programs

SUMMARY: The Secretary amends the regulations governing grants for the

Indian Fellowship Program. This program is authorized under Title IX of

the Elementary and Secondary Education Act (ESEA) of 1965, as amended

by the Improving America's Schools Act of 1994, enacted October 20,

1994. These regulations identify eligible applicants for the program

and the specific application and other program requirements that

applicants must meet in order to be considered for funding. These

regulations also provide certain general provisions and requirements

for the new payback provisions that apply to both the Indian Fellowship

Program and the Professional Development Program.

EFFECTIVE DATE: These regulations take effect September 29, 1996.

FOR FURTHER INFORMATION CONTACT: Cathie Martin, U.S. Department of

Education, 600 Independence Avenue, SW., Room 4300 Portals Building,

Washington, DC 20202-6335. Telephone: (202) 260-1683. 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: On October 20, 1994 the Professional

Development Program and the Indian Fellowship Program were

substantially revised and recodified, respectively, as sections 9122

and 9123 of Subpart 2 of Part A of Title IX of the Elementary and

Secondary Education Act of 1965, as amended by Pub. L. 103-382. These

regulations identify eligible applicants for the Indian Fellowship

Program and address the specific program requirements, including

application requirements and requirements concerning the new payback

provisions that applicants must meet in order to be considered for

funding for both new and continuation awards. The criteria for

selecting participants for the Professional Development Program are not

included in these regulations. The selection criteria in the Education

Department General Administrative Regulations (EDGAR), 34 CFR part 75,

are used for competitions under the Professional Development Program.

In addition, certain of these regulations govern the Professional

Development Program (Sec. 263.3, (definitions), Sec. 263.1 (b) and (c),

and Secs. 263.35 through 263.37 (the new payback provisions that also

apply to this program)).

With regard to the payback provisions, the Indian Fellowship

Program and Professional Development Program now require that an

individual receiving financial assistance either (1) perform work

related to the training for which assistance was received and that

benefits Indian people; or (2) repay all or a prorated portion of the

assistance.

These regulations apply to all FY 1996 awards, both new and

continuation, and subsequent fiscal years' awards.

On July 26, 1996 the Secretary published a notice of proposed

rulemaking (NPRM) for these programs in the Federal Register (61 FR

39246). Except for minor editorial and technical revisions, there are

no differences between the NPRM and these final regulations.

Public Comment

In the NPRM the Secretary invited comments on the proposed

regulations. The Secretary did not receive any comments.

Paperwork Reduction Act of 1995

Under the Paperwork Reduction Act of 1995, no persons are required

to respond to a collection of information unless it displays a valid

OMB control number. The valid OMB control number assigned to the

collection of information in these final regulations is displayed at

the end of the affected sections of the regulations.

Intergovernmental Review

The Indian Fellowship Program is not subject to the requirements of

Executive Order 12372 and the regulations in 34 CFR part 79.

The Professional Development Program, with the exception of

assistance to federally recognized tribes, is subject to the

requirements 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 by or is

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

List of Subjects in 34 CFR Part 263

Grant programs--education, Indians--education, Reporting and

recordkeeping requirements, Scholarships and fellowships.

Dated: August 27, 1996.

(Catalog of Federal Domestic Assistance Numbers: 84.087 Indian

Education--Fellowships for Indian Students; and 84.299 Indian

Education--Special Programs.)

Gerald N. Tirozzi,

Assistant Secretary for Elementary and Secondary Education.

The Secretary amends title 34 of the Code of Federal Regulations by

revising part 263 to read as follows:

PART 263--INDIAN FELLOWSHIP AND PROFESSIONAL DEVELOPMENT PROGRAMS

Subpart A--General

Sec.

263.1 What are the Indian Fellowship and the Professional

Development Programs?

263.2 Who is eligible to apply under the Indian Fellowship Program?

263.3 What definitions apply to the Indian Fellowship and

Professional Development Programs?

263.4 What are the allowable fields of study in the Indian

Fellowship Program?

263.5 What does a fellowship award include?

263.6 What is the time period for a fellowship award?

Subpart B--How Does the Secretary Select Fellows?

263.20 What priority is given to certain applicants?

263.21 What should the fellowship application contain?

263.22 How does the Secretary evaluate applications?

Subpart C--What Conditions Must be Met by Fellows?

263.30 What are the basic requirements of a fellow?

263.31 What information must be submitted after a fellowship is

awarded?

[[Page 46339]]

263.32 What are the requirements for a leave of absence?

263.33 What is required for continued funding under a fellowship?

263.34 When is a fellowship discontinued?

263.35 What are the payback requirements?

263.36 When does payback begin?

263.37 What are the payback reporting requirements?

Subpart D--How Are Fellowship Payments Made?

263.40 How are payments made?

Authority: 20 U.S.C. 7832 and 7833, unless otherwise noted.

Subpart A--General

Sec. 263.1 What are the Indian Fellowship and the Professional

Development Programs?

(a) The Indian Fellowship Program provides fellowships to enable

Indian students to pursue a course of study leading to--

(1) A postbaccalaureate degree in medicine, law, education,

psychology, clinical psychology, or a related field; or

(2) An undergraduate or postbaccalaureate degree in business

administration, engineering, natural resources, or a related field.

(b) The Professional Development Program provides grants to

eligible entities to--

(1) Increase the number of qualified Indian individuals in

professions that serve Indian people;

(2) Provide training to qualified Indian individuals to become

teachers, administrators, teacher aides, social workers, and ancillary

educational personnel; and

(3) Improve the skills of qualified Indian individuals who serve in

the capacities described in paragraph (b)(2) of this section.

(c) The Indian Fellowship and the Professional Development Programs

require individuals who receive training under either program to--

(1) Perform work that is related to the training received under

either program and that benefits Indian people or to repay all or a

prorated part of the assistance received under the program; and

(2) Report to the Secretary on the individual's compliance with the

work requirement.

(Authority: 20 U.S.C. 7832 and 7833)

Sec. 263.2 Who is eligible to apply under the Indian Fellowship

Program?

In order to be eligible for a fellowship, an applicant must be--

(a) An Indian as defined in Sec. 263.3;

(b) A United States citizen;

(c) Currently in attendance or have been accepted for admission as

a full-time undergraduate or graduate student at an accredited

institution of higher education in one of the fields listed in

Sec. 263.4 or a related field;

(d) Recognized by the institution as a degree candidate; and

(e) Eligible under 34 CFR 75.60.

(Authority: 20 U.S.C. 7833; 20 U.S.C. 1221e-3(a)(1) and 3474)

Sec. 263.3 What definitions apply to the Indian Fellowship and

Professional Development Programs?

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

defined in 34 CFR 77.1:

Department

Secretary

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

part:

Dependent allowance means costs for the care of minor children who

reside with the fellow and for whom the fellow has responsibility.

Expenses means tuition and required fees; required university

health insurance; room, personal living expenses, and board at or near

the institution; dependent allowance; instructional supplies; and

reasonable travel and research costs associated with doctoral

dissertation completion.

Fellow means the recipient of a fellowship under the Indian

Fellowship Program. The term ``fellow'' also includes individual

project participants under the Professional Development Program with

regard to the payback provisions contained in Secs. 263.35 through

263.37.

Fellowship means an award under the Indian Fellowship Program.

Full course load means the number of credit hours that the

institution requires of a full-time student.

Full-time student means a student who--

(1) Is a degree candidate;

(2) Carries a full course load; and

(3) Is not employed for more than 20 hours a week.

Good standing means a cumulative grade point average of at least

2.0 on a 4.0 grade point scale in which failing grades are computed as

part of the average, or another appropriate standard established by the

institution.

Graduate degree means a postbaccalaureate degree awarded by an

institution of higher education beyond the undergraduate level.

Indian means an individual who is--

(1) A member of an Indian tribe or band, as membership is defined

by the Indian tribe or band, including any tribe or band terminated

since 1940, and any tribe or band recognized by the State in which the

tribe or band resides; or

(2) A descendant, in the first or second degree, of an individual

described in paragraph (1) of this definition; or

(3) Considered by the Secretary of the Interior to be an Indian for

any purpose; or

(4) An Eskimo, Aleut, or other Alaska Native; or

(5) A member of an organized Indian group that received a grant

under the Indian Education Act of 1988 as it was in effect on October

19, 1994.

Institution of higher education means an accredited college or

university within the United States that offers a baccalaureate or

postbaccalaureate degree.

Payback means work-related service or cash reimbursement to the

Department of Education for the training received under the Indian

Fellowship or the Professional Development Program.

Stipend means that portion of an award that is used for room and

board and personal living expenses.

Undergraduate degree means a baccalaureate (bachelor's) degree

awarded by an institution of higher education.

(Authority: 20 U.S.C. 7832, 7833, and 7881)

Sec. 263.4 What are the allowable fields of study in the Indian

Fellowship Program?

(a) The following are allowable fields for an undergraduate degree

under this program:

(1) Business administration.

(2) Engineering.

(3) Natural resources.

(b) The following are allowable fields for a graduate degree under

this program:

(1) Medicine.

(2) Clinical psychology.

(3) Law.

(4) Education.

(5) Psychology.

(6) Engineering.

(7) Natural resources.

(8) Business administration.

(c) The Secretary considers under paragraphs (a) and (b) of this

section, on a case-by-case basis, the eligibility of applications for

fellowships in related fields of study.

(Authority: 20 U.S.C. 7833)

Sec. 263.5 What does a fellowship award include?

(a) The Secretary awards a fellowship in an amount up to, but not

more than, the expenses as defined in this part. The assistance

provided by the program either--

(1) Fully finances a student's educational expenses; or

(2) Supplements other sources of financial aid, including other

Federal financial aid other than loans, for meeting educational

expenses.

[[Page 46340]]

(b) The Secretary announces the expected maximum amounts for

subsistence and other fellowship costs in the annual application notice

published in the Federal Register.

(Authority: 20 U.S.C. 7833)

Sec. 263.6 What is the time period for a fellowship award?

(a) The Secretary awards a fellowship for a period of time not

exceeding--

(1) Four academic years for an undergraduate or doctorate degree;

and

(2) Two academic years for a master's degree.

(b) With prior approval from the Secretary, summer school may be

allowed for eligible continuation students after completion of the

first academic year.

(Authority: 20 U.S.C. 7833)

Subpart B--How Does the Secretary Select Fellows?

Sec. 263.20 What priority is given to certain applicants?

The Secretary awards not more than 10 percent of the fellowships,

on a priority basis, to persons receiving training in guidance

counseling with a specialty in the area of alcohol and substance abuse

counseling and education.

(Authority: 20 U.S.C. 7833)

Sec. 263.21 What should the fellowship application contain?

In addition to the requirements specified in Sec. 263.22, an

applicant shall provide--

(a) Evidence that the applicant is an Indian as defined in

Sec. 263.3. Evidence may be in the form of--

(1)(i) A copy of the applicant's documentation of tribal enrollment

or membership; or

(ii) A copy of the parent's or grandparent's documentation of

tribal enrollment or membership, with supporting birth certificates or

similar documents showing the applicant's descendance from the enrolled

member;

(2) A letter of certification on official letterhead with the

appropriate signature from a federally or State recognized tribe or

band; or

(3) A certificate of degree of Indian blood (CDIB) issued by an

authorized representative of the Bureau of Indian Affairs or an

official of a federally recognized tribe;

(b)(1) Evidence that the applicant is currently in attendance or

has been accepted for admission as a full-time student at an accredited

institution of higher education in one of the eligible fields of study

listed in Sec. 263.4; or

(2) For an applicant who has not yet been accepted for admission,

documentation of having been accepted by an accredited institution of

higher education by a date to be specified by the Secretary;

(c)(1) The most current official high school and, if appropriate,

undergraduate transcripts for undergraduate applicants; or

(2) The most current official undergraduate and, if appropriate,

graduate transcripts for graduate applicants;

(d) The certification required under 34 CFR 75.61; and

(e) The certification contained within the application regarding

agreement to fulfill the requirements of the payback provision that is

signed and dated by the applicant.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7833; 20 U.S.C. 1221e-3(a)(1) and 3474)

Sec. 263.22 How does the Secretary evaluate applications?

(a) The Secretary reviews and ranks an application with other

applications for the same field and related fields of study.

(b) The following criteria, with the total number of points

available in parenthesis, are used to evaluate an application for a new

fellowship award:

(1) Official academic record (60 points). The Secretary considers

the quality of the applicant's academic record by reviewing--

(i) The applicant's grade point average and, if applicable, scores

from such standardized tests as the Scholastic Aptitude Test (SAT),

American College Testing Assessment Program (ACT), Graduate Record

Examination (GRE), Law School Admissions Test (LSAT), Medical College

Admission Test (MCAT), and achievement tests; and

(ii) The applicant's official transcripts and any grade reports.

(2) Letters of recommendation (15 points). The Secretary considers

the applicant's potential for success in completing the academic

requirements for his or her field of study by reviewing one letter of

recommendation from each of the following categories:

(i) A school principal, teacher, academic or non-academic

instructor or counselor, a college professor, or academic advisor.

(ii) A member of the community or civic leader who has observed the

applicant in educational, social, or civic activities.

(iii) A tribal representative or an Indian community member.

(3) Commitment essay (25 points). The Secretary considers the

applicant's commitment by reviewing an essay, written by the applicant

that addresses--

(i) The applicant's career goals and why the chosen field of study

will benefit Indian people;

(ii) The applicant's life experiences and personal and family

expectations that will enhance the applicant's anticipated career

accomplishments; and

(iii) The applicant's anticipated commitment to providing service

to Indian people.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7833)

Subpart C--What Conditions Must be Met by Fellows?

Sec. 263.30 What are the basic requirements of a fellow?

A fellow shall--

(a) Start school during the first semester of the award at the

institution named on the grant award document and complete at least one

full academic term;

(b) Submit to the Secretary two copies of his or her official grade

report at the close of each academic term and upon completion of the

training program at that institution;

(c) Submit an annual continuation application, in the form and

timeframes specified by the Secretary, to request funding for each

remaining academic year approved under the initial application;

(d) Request from the Secretary a written leave of absence at least

30 days prior to withdrawal, unless an emergency situation has

occurred, for any interruption in his or her program of academic

studies; and

(e) Sign an agreement with the Department to meet the provisions of

the payback requirement.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7833)

Sec. 263.31 What information must be submitted after a fellowship is

awarded?

To verify further the accuracy of the information provided in the

application, the applicant shall provide all information and documents

as requested by the Secretary, including information on other financial

aid sources for educational purposes. The applicant's failure to

provide the requested information and documents invalidates the

application, and the Secretary will not consider it for funding.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7833)

[[Page 46341]]

Sec. 263.32 What are the requirements for a leave of absence?

(a) The Secretary may approve a leave of absence for a period not

longer than one academic year if a fellow has successfully completed at

least one academic year.

(b) A written request for a leave of absence must be submitted to

the Secretary not less than 30 days prior to withdrawal or completion

of a grading period, unless an emergency situation has occurred and the

Secretary waives the prior notification requirement.

(c) The Secretary permits a leave of absence only if the

institution certifies that the fellow is eligible to resume his or her

course of study at the end of the leave of absence.

(d) The Secretary withdraws any remaining funds of the fellow's

award if a leave of absence occurs prior to the end of an academic

term.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7833)

Sec. 263.33 What is required for continued funding under a fellowship?

(a) The Secretary reviews the status of each fellow at the end of

each year and continues support only if the fellow--

(1) Has complied with requirements under this part;

(2) Has remained a full-time student in good standing in the field

in which the fellowship was awarded; and

(3) Has submitted a noncompeting continuation application

requesting additional support.

(b) A fellowship terminates when the fellow receives the degree

being sought or after the fellow has received the fellowship for the

maximum number of years allowed as defined in Sec. 263.6, whichever

comes first.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7833)

Sec. 263.34 When is a fellowship discontinued?

(a) The Secretary may discontinue the fellowship if the fellow--

(1) Fails to comply with the provisions under this part, including

failure to obtain an approved leave of absence under Sec. 263.32, or

with the terms and conditions of the fellowship award; or

(2) Fails to report any change in his or her academic status.

(b) The Secretary discontinues a fellowship only after providing

reasonable notice and an opportunity for the fellow to rebut, in

writing or in an informal meeting with the responsible official in the

Department of Education, the basis for the decision.

(Authority: 20 U.S.C. 7833)

Sec. 263.35 What are the payback requirements?

(a) Individuals receiving assistance under the Indian Fellowship

Program or the Professional Development Program are required to--

(1) Perform work related to the training received and that benefits

Indian people; or

(2) Repay all or a prorated part of the assistance received.

(b) The period of time required for a work-related payback is

equivalent to the total period of time for which training was actually

received under the Indian Fellowship Program or the Professional

Development Program.

(c) The cash payback required must be equivalent to the total

amount of funds received and expended for training received under

either of these programs and may be prorated based on any approved

work-related service the participant performs.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7832 and 7833)

Sec. 263.36 When does payback begin?

(a) For all fellows who complete their training under the Indian

Fellowship Program or the Professional Development Program, except for

medical degree and doctoral degree candidates, payback must begin

within six months from the date of completion of the training.

(b) For fellows in a doctoral degree program requiring a

dissertation, payback must begin not later than two years after the

program's academic course work has been completed or the institution

determines the student is no longer eligible to participate in the

training program, whichever occurs first.

(1) After academic course work has been completed, fellows in a

doctoral degree program shall submit an annual written report to the

Secretary on the status of the dissertation.

(2) Within 30 days of completion of the dissertation, fellows in a

doctoral degree program shall provide written notification to the

Secretary of completion of the dissertation and of the participant's

plans for completing a work-related or cash payback.

(c) For fellows in a doctoral degree program with clinical or

internship requirements, payback must begin within six months after the

clinical or internship requirements have been met or the institution

determines the student is no longer eligible to participate in the

training program, whichever occurs first.

(1) After academic course work has been completed, fellows in a

doctoral degree program with clinical or internship requirements shall

submit an annual written report to the Secretary on the status of

completion of the clinical or internship requirements.

(2) Within 30 days of completion of the clinical or internship

requirements, fellows shall provide written notification to the

Secretary of completion of those requirements and the participant's

plans for completing a work-related or cash payback.

(d) For fellows in a medical degree program, payback must begin six

months from the date that all residency requirements of the program

have been met or the institution determines the student is no longer

eligible to participate in the training program, whichever occurs

first.

(1) After academic course work has been completed, fellows in a

medical degree program shall submit an annual written report to the

Secretary on the status of completion of the residency requirements of

the program.

(2) Within 30 days of completion of the residency requirements,

fellows in a medical degree program shall provide written notification

to the Secretary of completion of the residency requirements and of the

participant's plans for completing a work-related or cash payback.

(e) For fellows who do not complete their training under the Indian

Fellowship Program or the Professional Development Program, payback

must begin within six months from the date the fellow leaves the Indian

Fellowship Program or the Professional Development Program, unless he

or she continues as a full-time student, without interruption, in a

program leading to a degree in an accredited institution of higher

education.

(1) If the fellow leaves the Indian Fellowship Program or the

Professional Development Program, but plans to continue his or her

education as a full-time student, the Secretary may defer the payback

requirement until the participant has completed his or her educational

program. Written requests for deferment must be submitted to the

Secretary within 30 days of leaving the Indian Fellowship Program or

the Professional Development Program and must provide the following

information:

(i) The name of the accredited institution the student will be

attending.

(ii) A copy of the letter of admission from the institution.

(iii) The degree being sought.

(iv) The projected date of completion.

(2) After approval by the Secretary of the deferment of the payback

provision

[[Page 46342]]

on the basis of continuing as a full-time student, former fellows are

required to submit to the Secretary, after every grading period, a

status report from an academic advisor or other authorized

representative of the institution of higher education showing

verification of enrollment and status.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7832 and 7833)

Sec. 263.37 What are the payback reporting requirements?

(a) Written notice. Participants shall submit to the Secretary,

within 30 days of completion of their training program, a written

notice of intent to complete a work-related or cash payback or to

continue in a degree program as a full-time student.

(b) Work-related payback. If the participant proposes a work-

related payback, the written notice of intent must include information

explaining how the work-related service is related to the training

received and benefits Indian people.

(1) For work-related service, the Secretary reviews each

participant's payback plan to determine if the work-related service is

related to the training received and benefits Indian people. The

Secretary approves the payback plan if a determination is made that the

work-related service to be performed is related to the training

received and benefits Indian people, meets all applicable statutory and

regulatory requirements, and is otherwise appropriate.

(2) The payback plan for work-related service must identify where,

when, the type of service, and for whom the work will be performed.

(3) A participant shall notify the Secretary in writing of any

change in the work-related service being performed within 30 days of

such a change.

(4) For work-related payback, individuals shall submit a status

report every six months beginning from the date the work-related

service is to begin. The reports must include a certification from the

participant's employer that the service or services have been performed

without interruption.

(5) Upon written request, and if appropriate, the Secretary may

extend the period for completing a work-related payback by a total of

18 months.

(6) For participants who initiate, but cannot complete, a work-

related payback, the payback reverts to a cash payback.

(c) Cash payback. If a cash payback is to be made, the Department

will contact the participant to establish an appropriate schedule for

payments.

(Approved by the Office of Management and Budget under control

number 1810-0020)

(Authority: 20 U.S.C. 7832 and 7833)

Subpart D--How Are Fellowship Payments Made?

Sec. 263.40 How are payments made?

(a) Fellowship payments are made directly to the institution of

higher education where a fellow is enrolled, with stipends provided to

the fellow in installments by the institution. No fewer than two

installments per academic year may be made.

(b) If a fellow transfers to another institution, the fellowship

may also be transferred provided the fellow maintains basic eligibility

for the award.

(c) A fellow who officially or unofficially withdraws or is

expelled from an institution before completion of a term shall refund a

prorated portion of the stipends received, as determined by the

Secretary. The Secretary requires the institution to return any

unexpended funds.

(Authority: 20 U.S.C. 7833)

[FR Doc. 96-22216 Filed 8-29-96; 8:45 am]

BILLING CODE 4000-01-P