Higher Education Programs in Modern Foreign Language Training and Area StudiesForeign Language and Area Studies Fellowships Program

SUMMARY: The Secretary amends the regulations governing the Higher

Education Programs in Modern Foreign Language Training and Area

Studies--Foreign Language and Area Studies (FLAS) Fellowships Program.

These final regulations are needed to improve the application review

process and to update the regulations in light of developments in the

field of foreign language, area, and international studies. In the

spirit of reinventing government, the goal of the final regulations is

to markedly reduce the burden associated with the application process.

These final regulations are intended to (a) Reduce the burden on

applicants and readers by clarifying and restructuring selection

criteria to remove ambiguity and eliminate repetition of information

presented in applications, (b) facilitate funding decisions by

providing a larger point spread for greater differentiation of

rankings, (c) simplify the application process for applicants, improve

the cost-effectiveness of the program, and standardize program

management by adopting the fellowship award allocation system currently

used to administer other Federal fellowship programs, and (d) improve

program quality, efficiency, and flexibility by adopting changes

program management experience shows to be appropriate.

EFFECTIVE DATE: These regulations take effect on October 24, 1996.

FOR FURTHER INFORMATION CONTACT: Cheryl Gibbs, U.S. Department of

Education, 600 Independence Avenue, S.W., Suite 600-B, Portals

Building, Washington, D.C. 20202-5331. Telephone (202) 401-9785.

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: The Foreign Language and Area Studies

Fellowships Program is one of several international education programs

authorized under Part A of Title VI of the Higher Education Act of

1965, as amended. The main provisions of the regulations govern the

awarding of grants designed to provide fellowship assistance to

students enrolled in advanced programs of modern foreign language and

area or international studies.

On March 28, 1996, the Secretary published a notice of proposed

rulemaking (NPRM) for this program in the Federal Register (61 FR

14006). The NPRM included a discussion of the proposed changes in the

regulations for the Foreign Language and Area Studies Fellowships

Program by modifying the selection criteria for applications, by

eliminating references to undergraduate programs and fellowship

recipients in keeping with statutory requirements, by adopting a new

system of allocating fellowship awards, by easing restrictions on the

use of fellowship awards abroad, and by clarifying that only academic

year awards may be used for research abroad.

As a result of the comments received, the Secretary has increased

the number of points allocated to the ``Strength of library''

criterion, has replaced the term ``teaching assistants'' with the term

``instructional assistants'' in the appropriate criteria to eliminate

inconsistencies among applicant institutions regarding this position;

has rephrased the ``Quality of the Center's language instructional

program'' criterion to eliminate ambiguity regarding the information

requested on student enrollments and the Center's offerings; and has

eliminated an evaluation factor in Sec. 657.21(a).

Analysis of Comments and Changes

In response to the Secretary's invitation in the NPRM, 87 parties

submitted comments, 74 of which addressed the proposed regulations. An

analysis of the comments and of the changes in the regulations since

the publication of the NPRM follows.

Substantive issues are discussed under the section of the

regulations to which they pertain. Technical and other minor changes--

and suggested changes the Secretary is not legally authorized to make

under the applicable statutory authority--are not addressed. Comments

not related to the proposed regulations are not addressed.

What criteria does the Secretary use in selecting institutions for

an allocation of fellowships? (Sec. 657.21)

--Foreign language and area studies fellowships awardee selection

procedures. (Sec. 657.21(a))

Comments: One commenter suggested decreasing the number of total

points available for this criterion because the factors used to select

FLAS awardees do not necessarily allow readers to differentiate between

academic programs of high quality. The commenter suggested that the

Secretary eliminate the second factor in this criterion because it

requests information that is not relevant to the process for selecting

institutions for an allocation of fellowships.

Discussion: The Secretary believes that the procedures used to

select FLAS awardees are important elements of the grantee's plan of

operation. The Secretary also believes that the first factor in this

criterion covers this information and allows readers to assess the

likelihood of the applicant's meeting the announced competitive

priorities for the FLAS program as well as the potential impact of the

grant. The Secretary agrees that the second element of the criterion,

the extent to which the applicant provides information about current

and prospective applicant-to-award ratios, is not critical to the

readers and should be eliminated to emphasize the importance of the

selection procedures. The Secretary does not wish to decrease the total

number of points for this criterion, however.

Changes: Section 657.21(a)(2) has been eliminated.

--Impact and evaluation. (Sec. 657.21(c))

Comments: One commenter stated that the kinds of quantifiable data

being requested to validate a Center's success may prompt institutions

to submit inflated data. The commenter stated that an applicant's

achievements also may be documented by other unspecified indicators and

urged the Secretary to develop measurements that solicit more relevant

and meaningful feedback.

Discussion: While there are alternative mechanisms that may be

available to measure impact, the Secretary requested outcome-based data

elements because concrete data are needed to assess whether Centers are

fulfilling the purposes contained in the statute and to assess

applicant institutions' comparative strengths. The Secretary

understands the concern over possible inflated data. All applicants,

however, must attest to the accuracy of their applications under the

penalty of perjury and eventual grantees are further subject to the

provisions of the Federal False Claims Act.

Changes: None.

--Strength of library. (Sec. 657.21(e))

Comments: Several commenters favored the inclusion of factors that

evaluate an institution's capacity for electronic access to research

materials and cooperative arrangements for

[[Page 50201]]

sharing library resources. They applauded the Secretary's efforts to

respond to current technological and economic trends affecting

institutions.

One commenter stated that the new factors detracted from

recognizing the exemplary qualities and practices of traditional

research libraries and that emphasis on these alternative strategies

jeopardized institutional incentive for supporting libraries in

resource-allocation plans.

Discussion: The Secretary believes that the inclusion of

information about electronic access to research materials and

cooperative resource-sharing arrangements reflects current national

trends in libraries. The strength of traditional collections still

receives 10 of the possible 15 points for this criterion.

Changes: None.

--Quality of the applicant's non-language instructional program.

(Secs. 657.21(f) and 657.21(g))

Comments: One commenter suggested replacing ``teaching assistants''

with the term ``instructional assistants'' to avoid inconsistencies

among applicant institutions regarding the position description and

duties.

Discussion: The Secretary agrees that this revision is helpful for

the reason stated by the commenter.

Changes: The Secretary has replaced the term ``teaching

assistants'' with the term ``instructional assistants'' in

Secs. 657.21(f)(3) and 657.21(g)(3).

--Quality of the applicant's language instructional program.

(Sec. 657.21(g))

Comments: One commenter was concerned that by limiting student

enrollment information in Sec. 657.21(g)(1) to courses offered directly

by the applicant, the Secretary was not recognizing the importance of

student enrollment in language programs offered by other institutions

(for example, summer study programs) during the course of the students'

overall language study at the applicant institution. The commenter

requested that the Secretary rephrase the criterion to broaden the

enrollment data that can be considered.

Discussion: The Secretary agrees that the extent to which students

from the Center's institution study foreign languages, both at the

institution and through off-campus programs and courses, should be

recognized under this criterion.

Changes: The Secretary has revised Sec. 657.21(g)(1) to include

student enrollment in programs offered by the Center or other

providers.

What is the amount of a fellowship? (Sec. 657.31)

Comments: Most comments received from postsecondary faculty and

administrators supported a standard institutional payment plus

subsistence allowance because this system is equitable for both public

and private institutions of higher education. These commenters also

observed that the system will be more cost-effective and more equitable

than the previous system of allocating FLAS funds.

One commenter asked whether the new cost-of-education allowance

system will permit institutions to reallocate unused portions of

academic year fellowship awards to make awards to additional fellowship

recipients. The commenter noted that frequently there are award

recipients who complete their required courses without having to use

the entire amount of the fellowship award.

Several commenters believed the new cost-of-education allowance

system substantially simplifies institutional administrative procedures

for grantees.

One commenter disagreed that the new cost-of-education allowance

system simplifies grants administration for institutions.

A few commenters opposed a standard institutional payment because

they believed it will inhibit some institutions with high tuition

graduate and professional programs from applying for the fellowships.

The commenters stated that institutions do not have the financial

resources to pay the difference between the standard institutional

payment and high tuition costs, thereby making the fellowship awards

less desirable to potential applicant institutions. One commenter

suggested rectifying this problem by eliminating the requirement that

institutions provide full fellowships to individual students. This

commenter felt that institutions should be allowed to require students

to share the cost of the fellowship.

Two commenters believed that the cost-of-education allowance system

will inhibit professional school students from receiving Foreign

Language and Area Studies Fellowships and that this contradicts the

current competitive priorities for the program.

One commenter added that, if an institution forgoes applying for

Foreign Language and Area Studies Fellowships due to the difference

between the institutional payment and the actual tuition rate, then the

cost-of-education allowance system will prevent access to the

fellowship funds for students at high tuition institutions.

Two commenters disagreed with the Secretary's rationale for using

other graduate fellowship programs, such as Jacob Javits and Patricia

Roberts Harris, as models for the proposed Foreign Language and Area

Studies Fellowships Program cost-of-education allowance system. The

commenters stated that the provisions under those programs differ from

the FLAS program in that those Federal fellowship programs provide the

awards directly to students and do not require institutions to accept

prospective fellowship recipients enrolled in high-cost programs. Those

commenters also claimed that, since the permitted scope of study

conducted under the Javits and Harris fellowships is broader, the

institution is able to make up the difference between the institutional

payment and the actual tuition from across many departments in the

university. The commenters claimed that the FLAS program has a narrower

focus and, therefore, will have a direct impact on only the departments

with international components.

One commenter suggested phasing in the new cost-of-education

allowance system over a three-year period to allow institutions that

receive fellowship grants sufficient time to identify additional

resources to supplement the institution's standard institutional

payment.

Discussion: The Secretary appreciates the comments supporting the

cost-of-education allowance. The Secretary believes this system

provides for an equitable allocation of funds whereby each institution

will receive the same amount per student. The change will enable the

Department and grantee institutions to administer the FLAS program more

effectively. The Secretary believes the allowance system substantially

encourages cost-effectiveness and improves program accountability. In

this era of diminishing budgetary resources, the Secretary believes it

is important to encourage cost-containment and the award of the largest

possible number of fellowships out of limited funds. Without this

change, there is limited disincentive to prevent an institution from

paying itself ``full'' tuition for a smaller number of awards.

Given that the majority of comments received from institutions

supported this change, the Secretary disagrees with the commenters who

suggested that institutions will not be able to support the FLAS

program based on the cost-of-education allowance. The FLAS regulations

allow unused portions of grants (such as institutional payments in

excess of actual tuition costs) to be used by institutions to make

additional fellowship awards.

The Secretary disagrees with the suggestion that the cost-of-

education

[[Page 50202]]

allowance be phased in over three years. The administrative burden and

delayed phase-in would defeat the benefits sought under the cost-of-

education allowance system.

Changes: None.

What are the limitations on the use of funds for overseas

fellowships? (Sec. 657.33(b)(1))

Comments: One commenter supported the provision allowing students

at the beginning proficiency level to use a fellowship award abroad if

an appropriate program in the same language is not available in the

United States. The commenter stated that the revised restriction

provides opportunities for more students to enroll in meaningful

overseas language training programs.

One commenter suggested a revision to indicate that the advanced

level of language proficiency is the preferred eligibility level for

approval to use FLAS awards abroad and that students at the beginning

or intermediate level may use a FLAS award abroad only if equivalent

instruction is not available in the United States.

Discussion: The Secretary believes that the suggested revision

unnecessarily restricts management flexibility for grantees,

particularly in the field of less-commonly-taught languages. The

Secretary disagrees with the commenter's view that only students with

advanced language proficiency should be allowed to use FLAS awards

abroad because beginning and intermediate level students can also

benefit from language study in an immersion environment. The Secretary

believes the language proficiency eligibility requirements and the

conditions for approval to use a fellowship outside the United States

are sufficient to maximize the positive impact of the FLAS program.

Changes: None.

--Other Changes. (Secs. 657.21(c)(2), 657.21(i), and 657.33(b)(1))

Comments: None.

Discussion: In the ``Impact and evaluation'' criterion, the

Secretary believes that requiring that the applicant's evaluation plan

be comprehensive and objective at the time of the submission of the

application emphasizes the importance of the applicant's participation

in and ongoing commitment to improving program quality and efficiency.

Changes: The Secretary has changed ``that will be'' to ``that is''

in Sec. 657.21(c)(2).

Comments: None.

Discussion: The Secretary did not receive comments regarding the

awarding of additional points to applicants. However, the Secretary

believes that the awarding of additional points should be done only

when the Secretary establishes a competitive priority.

Changes: The Secretary has inserted the word ``competitive'' after

the word ``more'' in the ``Priorities'' criterion (Sec. 657.21(i)).

Comments: None.

Discussion: Although the Secretary did not receive comments

concerning whether fellowships for overseas programs were limited to

foreign language studies, the Secretary believes that limiting the use

of fellowships overseas for only foreign language programs at the

specified proficiency levels reinforces the statutory purpose of

providing specialized training opportunities to eligible students.

Changes: The Secretary has added the words ``foreign language''

after the word ``overseas'' in Sec. 657.33(b)(1).

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 section of the regulations.

Intergovernmental Review

This program 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 government 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 regulations and on its own

review, the Department has determined that the final 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 657

Colleges and universities, Education, International education,

Reporting and recordkeeping requirements.

Dated: September 18, 1996.

David A. Longanecker,

Assistant Secretary for Postsecondary Education.

(Catalog of Federal Domestic Assistance Number 84.015 National

Resource Centers and Foreign Language and Area Studies Fellowships

Programs.)

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

revising Part 657 to read as follows:

PART 657--FOREIGN LANGUAGE AND AREA STUDIES FELLOWSHIPS PROGRAM

Subpart A--General

Sec.

657.1 What is the Foreign Language and Area Studies Fellowship

Program?

657.2 Who is eligible to receive an allocation of fellowships?

657.3 Who is eligible to receive a fellowship?

657.4 What regulations apply?

657.5 What definitions apply?

Subpart B--How Does an Institution or a Student Submit an Application?

657.10 What combined applications may an institution submit?

657.11 How does a student apply for a fellowship?

Subpart C--How Does the Secretary Select an Institution for an

Allocation of Fellowships?

657.20 How does the Secretary evaluate an institutional application

for an allocation of fellowships?

657.21 What criteria does the Secretary use in selecting

institutions for an allocation of fellowships?

657.22 What priorities may the Secretary establish?

Subpart D--What Conditions Must Be Met By a Grantee and a Fellow?

657.30 What is the duration of and what are the limitations on

fellowships awarded to individuals by institutions?

657.31 What is the amount of a fellowship?

657.32 What is the payment procedure for fellowships?

657.33 What are the limitations on the use of funds for overseas

fellowships?

657.34 Under what circumstances must an institution terminate a

fellowship?

Authority: 20 U.S.C. 1122, unless otherwise noted.

Subpart A--General

Sec. 657.1 What is the Foreign Language and Area Studies Fellowships

Program?

Under the Foreign Language and Area Studies Fellowships Program,

the Secretary awards fellowships, through

[[Page 50203]]

institutions of higher education, to students who are--

(a) Enrolled for graduate training in a Center or program approved

by the Secretary under this part; and

(b) Undergoing performance-based modern foreign language training

or training in a program for which performance-based modern foreign

language instruction is being developed, in combination with area

studies, international studies, or the international aspects of

professional studies.

(Authority: 20 U.S.C. 1122)

Sec. 657.2 Who is eligible to receive an allocation of fellowships?

(a) The Secretary awards an allocation of fellowships to an

institution of higher education or to a combination of institutions of

higher education that--

(1) Operates a Center or program approved by the Secretary under

this part;

(2) Teaches modern foreign languages under a program described in

paragraph (b) of this section; and

(3) In combination with the teaching described in paragraph (a)(2)

of this section--

(i) Provides instruction in the disciplines needed for a full

understanding of the area, regions, or countries in which the foreign

languages are commonly used; or

(ii) Conducts training and research in international studies, the

international aspects of professional and other fields of study, or

issues in world affairs that concern one or more countries.

(b) In teaching those modern foreign languages for which an

allocation of fellowships is made available, the institution must be

either using a program of performance-based training or developing a

performance-based training program.

(c) The Secretary uses the criteria in Sec. 657.21 both to approve

Centers and programs for the purpose of receiving an allocation of

fellowships and to evaluate applications for an allocation of

fellowships.

(d) An institution does not need to receive a grant under the

National Resource Center Program (34 CFR Part 656) to receive an

allocation of fellowships under this part.

(Authority: 20 U.S.C. 1122)

Sec. 657.3 Who is eligible to receive a fellowship?

A student is eligible to receive a fellowship if the student--

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

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

(b) Is accepted for enrollment or is enrolled--

(1) In an institution receiving an allocation of fellowships; and

(2) In a program that combines modern foreign language training

with--

(i) Area or international studies; or

(ii) Research and training in the international aspects of

professional and other fields of study;

(c) Shows potential for high academic achievement based on such

indices as grade point average, class ranking, or similar measures that

the institution may determine; and

(d) Is enrolled in a program of modern foreign language training in

a language for which the institution has developed or is developing

performance-based instruction.

(Authority: 20 U.S.C. 1122)

Sec. 657.4 What regulations apply?

The following regulations apply to this program:

(a) The regulations in 34 CFR Part 655.

(b) The regulations in this Part 657.

(Authority: 20 U.S.C. 1122)

Sec. 657.5 What definitions apply?

The following definitions apply to this part:

(a) The definitions in 34 CFR 655.4.

(b) Center means an administrative unit of an institution of higher

education that has direct access to highly qualified faculty and

library resources, and coordinates a concentrated effort of educational

activities, including training in modern foreign languages and various

academic disciplines, in its subject area.

(c) Fellow means a person who receives a fellowship under this

part.

(d) Fellowship means the payment a fellow receives under this part.

(e) Program means a concentration of educational resources and

activities in modern foreign language training and related studies.

(Authority: 20 U.S.C. 1122)

Subpart B--How Does an Institution or a Student Submit an

Application?

Sec. 657.10 What combined application may an institution submit?

An institution that wishes to apply for an allocation of

fellowships and for a grant to operate a Center under 34 CFR Part 656

may submit a combined application for both grants to the Secretary.

(Authority: 20 U.S.C. 1122)

Sec. 657.11 How does a student apply for a fellowship?

(a) A student shall apply for a fellowship directly to an

institution of higher education that has received an allocation of

fellowships.

(b) The applicant shall provide sufficient information to enable

the institution to determine whether he or she is eligible to receive a

fellowship and whether he or she should be selected to receive a

fellowship.

(Authority: 20 U.S.C. 1122)

Subpart C--How Does the Secretary Select an Institution for an

Allocation of Fellowships?

Sec. 657.20 How does the Secretary evaluate an institutional

application for an allocation of fellowships?

(a) The Secretary evaluates an application for an allocation of

fellowships on the basis of the quality of the applicant's Center or

program. The applicant's Center or program is evaluated and approved

under the criteria in Sec. 657.21.

(b) In general, the Secretary awards up to 140 possible points for

these criteria. However, if priority criteria are used, the Secretary

awards up to 150 possible points. The maximum possible points for each

criterion are shown in parentheses.

(Authority: 20 U.S.C. 1122)

Sec. 657.21 What criteria does the Secretary use in selecting

institutions for an allocation of fellowships?

(a) Foreign language and area studies fellowships awardee selection

procedures. (15 points) The Secretary reviews each application to

determine whether the selection plan is of high quality, showing how

awards will be advertised, how students apply, what selection criteria

are used, who selects the fellows, when each step will take place, and

how the process will result in awards being made to correspond to any

announced priorities.

(b) Quality of staff resources. (15 points) The Secretary reviews

each application to determine--

(1) The extent to which teaching faculty and other staff are

qualified for the current and proposed activities and training

programs, are provided professional development opportunities

(including overseas experience), and participate in teaching,

supervising, and advising students (5 points);

(2) The adequacy of applicant staffing and oversight arrangements

and the extent to which faculty from a variety of departments,

professional schools, and the library are involved (5 points); and

(3) The extent to which the applicant, as part of its

nondiscriminatory employment practices, encourages applications for

employment from persons who are members of groups that

[[Page 50204]]

have been traditionally underrepresented, such as members of racial or

ethnic minority groups, women, persons with disabilities, and the

elderly (5 points).

(c) Impact and evaluation. (20 points) The Secretary reviews each

application to determine--

(1) The extent to which the applicant's activities and training

programs have contributed to an improved supply of specialists on the

program's subject as shown through indices such as graduate enrollments

and placement data; and the extent to which the applicant supplies a

clear description of how the applicant will provide equal access and

treatment of eligible project participants who are members of groups

that have been traditionally underrepresented, such as members of

racial or ethnic minority groups, women, persons with disabilities, and

the elderly (15 points); and

(2) The extent to which the applicant provides an evaluation plan

that is comprehensive and objective and that will produce quantifiable,

outcome-measure-oriented data; and the extent to which recent

evaluations have been used to improve the applicant's program (5

points).

(d) Commitment to the subject area on which the applicant or

program focuses. (10 points) The Secretary reviews each application to

determine--

(1) The extent to which the institution provides financial and

other support to the operation of the applicant, teaching staff for the

applicant's subject area, library resources, and linkages with

institutions abroad (5 points); and

(2) The extent to which the institution provides financial support

to graduate students in fields related to the applicant's teaching

program (5 points).

(e) Strength of library. (15 points) The Secretary reviews each

application to determine--

(1) The strength of the institution's library holdings (both print

and non-print, English and foreign language) for graduate students; and

the extent to which the institution provides financial support for the

acquisition of library materials and for library staff in the subject

area of the applicant (10 points); and

(2) The extent to which research materials at other institutions

are available to students through cooperative arrangements with other

libraries or on-line databases (5 points).

(f) Quality of the applicant's non-language instructional program.

(25 points) The Secretary reviews each application to determine--

(1) The quality and extent of the applicant's course offerings in a

variety of disciplines, including the extent to which courses in the

applicant's subject matter are available in the institution's

professional schools (10 points);

(2) The extent to which the applicant offers depth of specialized

course coverage in one or more disciplines on the applicant's subject

area (5 points);

(3) The extent to which the institution employs a sufficient number

of teaching faculty to enable the applicant to carry out its purposes

and the extent to which instructional assistants are provided with

pedagogy training (5 points); and

(4) The extent to which interdisciplinary courses are offered for

graduate students (5 points).

(g) Quality of the applicant's language instructional program. (20

points) The Secretary reviews each application to determine--

(1) The extent to which the applicant provides instruction in the

languages of the applicant's subject area and the extent to which

students enroll in the study of the languages of the subject area

through programs or instruction offered by the applicant or other

providers (5 points);

(2) The extent to which the applicant provides three or more levels

of language training and the extent to which courses in disciplines

other than language, linguistics, and literature are offered in

appropriate foreign languages (5 points);

(3) Whether sufficient numbers of language faculty are available to

teach the languages and levels of instruction described in the

application and the extent to which language teaching staff (including

faculty and instructional assistants) have been exposed to current

language pedagogy training appropriate for performance-based teaching

(5 points); and

(4) The quality of the language program as measured by the

performance-based instruction being used or developed, the adequacy of

resources for language teaching and practice, and language proficiency

requirements (5 points).

(h) Quality of curriculum design. (20 points) The Secretary reviews

each application to determine--

(1) The extent to which the applicant's curriculum provides

training options for graduate students from a variety of disciplines

and professional fields and the extent to which these programs and

their requirements (including language requirements) are appropriate

for an applicant in this subject area and result in graduate training

programs of high quality (10 points);

(2) The extent to which the applicant provides academic and career

advising services for students (5 points); and

(3) The extent to which the applicant has established formal

arrangements for students to conduct research or study abroad and the

extent to which these arrangements are used; and the extent to which

the institution facilitates student access to other institutions' study

abroad and summer language programs (5 points).

(i) Priorities. (10 points) If one or more competitive priorities

have been established under Sec. 657.22, the Secretary reviews each

application for information that shows the extent to which the Center

or program meets these priorities.

(Approved by the Office of Management and Budget under control number

1840-0068)

(Authority: 20 U.S.C. 1122)

Sec. 657.22 What priorities may the Secretary establish?

(a) The Secretary may establish one or more of the following

priorities for the allocation of fellowships:

(1) Specific world areas, or countries, such as East Asia or

Mexico.

(2) Languages, such as Chinese.

(3) Levels of language offerings.

(4) Academic disciplines, such as linguistics or sociology.

(5) Professional studies, such as business, law, or education;

(6) Particular subjects, such as population growth and planning, or

international trade and business.

(7) A combination of any of these categories.

(b) The Secretary announces any priorities in the application

notice published in the Federal Register.

(Authority: 20 U.S.C. 1122)

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

Sec. 657.30 What is the duration of and what are the limitations on

fellowships awarded to individuals by institutions?

(a) Duration. An institution may award a fellowship to a student

for--

(1) One academic year; or

(2) One summer session if the summer session provides the fellow

with the equivalent of one academic year of modern foreign language

study.

(b) Vacancies. If a fellow vacates a fellowship before the end of

an award period, the institution to which the fellowship is allocated

may reaward the balance of the fellowship to another student if--

(1) The student meets the eligibility requirements in Sec. 657.3;

and

(2) The remaining fellowship period comprises at least one full

academic

[[Page 50205]]

quarter, semester, trimester, or summer session as described in

paragraph (a)(2) of this section.

(Authority: 20 U.S.C. 1122)

Sec. 657.31 What is the amount of a fellowship?

(a)(1) An institution shall award a stipend to fellowship

recipients.

(2) Each fellowship includes an institutional payment and a

subsistence allowance to be determined by the Secretary.

(3) If the institutional payment determined by the Secretary is

greater than the tuition and fees charged by the institution, the

institutional payment portion of the fellowship is limited to actual

tuition and fees. The difference between actual tuition and fees and

the Secretary's institutional payment shall be used to fund additional

fellowships to the extent that funds are available for a full

subsistence allowance.

(4) If permitted by the Secretary, the fellowship may include an

allowance for travel and an allowance for dependents.

(b) The Secretary announces in an application notice published in

the Federal Register--

(1) The amounts of the subsistence allowance and the institutional

payment for an academic year and the subsistence allowance and the

institutional payment for a summer session;

(2) Whether travel and dependents' allowances will be permitted;

and

(3) The amount of travel and dependents' allowances.

(Authority: 20 U.S.C. 1122)

Sec. 657.32 What is the payment procedure for fellowships?

(a) An institution shall pay a fellow his or her subsistence and

any other allowance in installments during the term of the fellowship.

(b) An institution shall make a payment only to a fellow who is in

good standing and is making satisfactory progress.

(c) The institution shall make appropriate adjustments of any

overpayment or underpayment to a fellow.

(d) Funds not used by one recipient for reasons of withdrawal are

to be used for alternate recipients to the extent that funds are

available for a full subsistence allowance.

(Authority: 20 U.S.C. 1122)

Sec. 657.33 What are the limitations on the use of funds for overseas

fellowships?

(a) Before awarding a fellowship for use outside the United States,

an institution shall obtain the approval of the Secretary.

(b) The Secretary may approve the use of a fellowship outside the

United States if the student is--

(1) Enrolled in an overseas foreign language program approved by

the institution at which the student is enrolled in the United States

for study at an intermediate or advanced level or at the beginning

level if appropriate equivalent instruction is not available in the

United States; or

(2) Engaged during the academic year in research that cannot be

done effectively in the United States and is affiliated with an

institution of higher education or other appropriate organization in

the host country.

(Authority: 20 U.S.C. 1122)

Sec. 657.34 Under what circumstances must an institution terminate a

fellowship?

An institution shall terminate a fellowship if--

(a) The fellow is not making satisfactory progress, is no longer

enrolled, or is no longer in good standing at the institution; or

(b) The fellow fails to follow the course of study, including

modern foreign language study, for which he or she applied, unless a

revised course of study is otherwise approvable under this part.

(Authority: 20 U.S.C. 1122)

[FR Doc. 96-24463 Filed 9-23-96; 8:45 am]

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