Grant Program for Higher Education

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 40

RIN 1076-AA10

Grant Program for Higher Education

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Proposed rule.

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SUMMARY: The Bureau of Indian Affairs (BIA) is proposing to amend its

regulations on Higher Education Grant Programs to improve the clarity

of the regulations and understanding of the public as mandated by

Executive Order 12866.

DATES: Comments must be received on or before May 20, 1997.

ADDRESSES: Mail comments to Joann S. Morris, Director, Office of Indian

Education Programs, Bureau of Indian Affairs, Department of the

Interior, 1849 C St. NW., Mail Stop 3512-MIB, Washington, DC 20240; or,

hand deliver them to Room 3512 at the above address. Comments will be

available for inspection at this address from 9 a.m. to 4 p.m., Monday

through Friday beginning approximately March 5, 1997.

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FOR FURTHER INFORMATION CONTACT: Garry R. Martin, Office of Indian

Education Programs, Bureau of Indian Affairs at telephone (202) 219-

1128.

SUPPLEMENTARY INFORMATION: The authority to issue rules and regulations

is vested in the Secretary of the Interior by 5 U.S.C. 301 and sections

463 and 465 of the Revised Statutes, 25 U.S.C. 2 and 9.

Publication of the proposed rule by the Department of the Interior

(Department) provides the public an opportunity to participate in the

rulemaking process. Interested persons may submit written comments

regarding the proposed rule to the location identified in the ADDRESSES

section of this document.

Executive Order 12778

The Department has certified to the Office of Management and Budget

(OMB) that the proposed rule meets the applicable standards provided in

sections 2(a) and 2(b)(2) of Executive Order 12778.

Executive Order 12866

This proposed rule is not a significant regulatory action under

Executive Order 12866.

Regulatory Flexibility Act

This proposed rule will not have a significant economic impact on a

substantial number of small entities under the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.).

Executive Order 12630

The Department has determined that this proposed rule does not have

``significant'' takings implications. The proposed rule does not

pertain to taking of private property interests, nor does it impact

private property.

Executive Order 12612

The Department has determined that this proposed rule does not have

significant federalism effects because it pertains solely to Federal-

tribal relations and will not interfere with the roles, rights and

responsibilities of states.

NEPA Statement

The Department has determined that this proposed rule does not

constitute a major Federal action significantly affecting the quality

of the human environment and that no detailed statement is required

pursuant to the National Environmental Policy Act of 1969.

Unfunded Mandates Act of 1995

This proposed rule imposes no unfunded mandates on any governmental

or private entity and is in compliance with the provisions of the

Unfunded Mandates Act of 1995.

Paperwork Reduction Act of 1995

As required by the Paperwork Reduction Act of 1995 (44 U.S.C.

3507(d)), the Department of the Interior has submitted a copy of these

sections to the Office of Management and Budget (OMB) for its review.

All information is to be collected annually from each applicant.

The annual reporting and record keeping burden for this collection of

information is estimated to average 4 hours for each response for 22

respondents, including the time for reviewing instructions, searching

existing data sources, gathering and maintaining the data needed, and

completing and reviewing the collection of information. The total

annual reporting and record keeping burden for this collection is

estimated to be 76 hours.

Organizations and individuals desiring to submit comments on the

information collection requirement should direct them to the Office of

Information and Regulatory Affairs, OMB, Room 10202, New Executive

Office Building, Washington, DC 20503; Attention: Interior Desk

Officer.

The Department considers comments by the public on this proposed

collection of information in:

Evaluating whether the proposed collection of information is

necessary for the proper performance of the functions of the

Department, including whether the information will have practical

utility;

Evaluating the accuracy of the Department's estimate of the burden

of the proposed collection of information, including the validity of

the methodology and assumptions used;

Enhancing the quality, usefulness, and clarity of the information

to be collected; and

Minimizing the burden of the collection of information on those who

are to respond; including through the use of appropriate automated,

electronic, mechanical, or other collection techniques or other forms

of information technology.

OMB is required to make a decision concerning the collection of

information contained in these proposed regulations between 30 and 60

days after publication of this document in the Federal Register.

Therefore, a comment to the OMB is best assured of having full effect

if OMB receives it within 30 days of publication. This does not affect

the deadline for the public to comment to the Bureau of Indian Affairs

on the proposed regulations.

Drafting Information: The primary author of this document is

Garry R. Martin, Office of Indian Education Programs, Bureau of

Indian Affairs, Department of the Interior.

List of Subjects in 25 CFR Part 40

Indians--education, Indians--educational assistance.

For the reasons given in the preamble, Part 40 of Title 25, chapter

I of the Code of Federal Regulations is proposed to be revised as set

forth below.

PART 40--HIGHER EDUCATION GRANT PROGRAM

Sec.

40.1 What special terms apply?

40.2 What is the purpose of this part?

40.3 Who is eligible for a higher education grant?

40.4 How do I apply for a higher education grant?

40.5 How is my application reviewed?

40.6 How will I be notified if I am awarded a grant?

40.7 How will I receive the grant?

40.8 How long does my financial aid last?

40.9 What happens if I withdraw from school?

40.10 How do I appeal a grant decision?

40.11 What records are kept for the grant program?

40.12 How does a tribe estimate allowable administrative costs?

40.13 May a tribe prioritize its higher education grant program?

40.14 Are there requirements for information collection?

Authority: 25 U.S.C. 2, 9, and 13; Reorganization Plan No. 3 of

1950 (65 Stat. 1262)

Sec. 40.1 What special terms apply?

Academic year means a period of time in which a full-time student

is expected to complete the equivalent of at least two semesters, two

trimesters, or three quarters at a institution that measures academic

process in credit hours.

Accreditation means the certification of an institution of higher

education by a sanctioned national or regional accrediting agency or

association recognized by the Secretary of Education.

BIA means the Bureau of Indian Affairs.

Campus-based aid means the Federal financial aid programs (i.e.,

Supplemental Educational Opportunity Grants (SEOG), College Work-Study

(CWS), and Perkins Loan) administered by the financial aid office.

Certificate of Agreement means a written agreement between a grant

recipient and the higher education program describing how a recipient

pays back grants when the recipient does not meet the requirements in

25 CFR 40.8 and 40.9.

Continuing student means a grant recipient who is currently

enrolled in an

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eligible institution and is maintaining satisfactory progress in his or

her course of study according to the institution's standards of

satisfactory progress.

Director means the Director, Office of Indian Education Programs,

Bureau of Indian Affairs.

Education Line Officer means a Bureau of Indian Affairs official

designated as an Agency Superintendent for Education or an Education

Program Administrator.

Eligible institution means an institution of higher education that

is accredited by a national or regional accrediting agency or is a

candidate for accreditation, or is a tribally controlled community

college.

Financial aid office means the office of an institution of higher

education that has responsibility for institutionally administered

financial aid.

Financial aid package means the institution's documents that

identify the amounts and types of financial aid awarded by the

institution and the amount of unmet need.

Full time student means an enrolled student who is carrying a full

time academic work load (other than correspondence course) as

determined by the eligible institution.

Higher education grant package means documents required to

identify, eligibility for assistance obtainable through federally

recognized tribal offices, or BIA offices. This package is available

from tribal Higher Education Grant Programs local Office of Indian

Education Programs.

Higher Education Office means a Bureau Education Line Office,

tribal or tribal organization administering funds appropriated to the

Bureau for higher education grants to eligible students.

Indian means a person who is a member of or is at least one-quarter

degree Indian blood descendant of a member of an Indian tribe that is

eligible for the special programs and services provided by the United

States through the Bureau of Indian Affairs to Indians because of their

status as Indians.

Indian tribe means any Indian Tribe, Band, Nation, Rancheria,

Pueblo, Colony or Community, including any Alaska Native village, that

is recognized by the United States Government, through the Secretary of

the Interior, for special programs and services provided by the

Secretary to Indians because of their status as Indians.

Mitigating circumstances means a circumstance, such as, a student's

medical diagnosed condition impairing the ability to continue a course

of study documented by his or her physician, or any other undue

hardship that significantly hinders a student's academic progress.

Near reservation means those areas or communities next to

reservations that are designated by the Assistant Secretary--Indian

Affairs upon recommendations of the local BIA Superintendent with input

of the affected tribal governing body.

Program plan means an individualized course of study in which the

student, in conjunction with the degree granting institution of higher

education, outlines the required courses for the desired degree.

Unmet need means the difference between the student's cost of

education and the resources available to defray those costs.

You means the grant applicant or potential applicant.

Sec. 40.2 What is the purpose of this part?

The BIA Grant Program for Higher Education, administered under the

authority of the Snyder Act of November 2, 1921 (25 U.S.C. 13),

provides financial assistance to eligible Indian students who have

unmet financial needs as determined by the eligible institution's

Financial Aid Office. All grants made under this part shall be subject

to availability of appropriations.

Sec. 40.3 Who is eligible for a higher education grant?

To be eligible for a higher education grant:

(a) You must be a member of a federally recognized Indian tribe

eligible for the programs provided to Indians by the BIA, or be a one-

quarter degree blood descendant of such a member;

(b) You must be admitted to an institution of higher education that

is accredited by national or regional accrediting agency, is a

candidate for accreditation, or is an eligible institution;

(c) You must apply for all available campus-based aid by an

established due date; and

(d) You must have unmet need (the difference between the cost of

your education and your resources for defraying that cost) as

determined by the eligible institution's financial aid office.

Sec. 40.4 How do I apply for a higher education grant?

(a) You must have the institution's financial aid office prepare

and certify an application package for financial aid. The package must

include:

(1) A letter of acceptance from your institution (required only if

you are a new, transfer, or a previously suspended student);

(2) A completed BIA form for applying for a higher education grant;

(3) A Certificate of Indian Blood (CIB) from your tribe or from the

BIA certifying that you are a member of a tribe or have documentation

to support a claim to Indian descent by blood quantum;

(4) A high school transcript or General Education Development (GED)

high school equivalency certificate;

(5) Grades, transcripts or progress reports from previous term/year

of attendance (continuing students); and

(6) A statement agreeing to repay the grant if you fail to enroll,

withdraw or are expelled, unless there are mitigating circumstances.

(b) This package must be submitted to the BIA or tribal

organization administering the program for your tribe by the due date

set by that organization. If your application arrives after the due

date, your application will be considered only if funds remain

available.

(c) You must submit a separate application for a summer school

program.

Sec. 40.5 How is my application reviewed?

The BIA or tribal organization administering the program for your

tribe reviews your application. The BIA or tribal organization will:

(a) Determine your unmet need, using information from your

institution's financial aid office;

(b) Approve your eligibility for a grant according to your tribe's

priority plan; and

(c) Within availability of funds, fund no more than your unmet

need.

Sec. 40.6 How will I be notified if I am awarded a grant?

The BIA or tribal organization administering the program for your

tribe will tell you and your institution's financial aid office in

writing of its approval or denial.

Sec. 40.7 How will I receive the grant?

(a) The BIA or tribal organization administering the program will

issue your grant to your institution's financial aid office.

(b) Your institution's financial aid office will distribute the

grant money according to its policy on disbursement.

Sec. 40.8 How long does my financial aid last?

(a) If your undergraduate degree or Certificate program requires

four or fewer academic years, you may take extra years to complete the

program, but you must finish a degree in no more than five academic

years.

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(b) If your undergraduate degree or certificate program normally

requires more than four academic years, you may take extra years to

complete the program, but you must finish a degree in six academic

years.

(c) The BIA or tribal organization administering the program may

waive the time limits for hardship caused by special circumstances.

(d) To remain eligible for continued funding, you must submit a

grade report or transcript for each term to the BIA or tribal

organization administering the program.

Sec. 40.9 What happens if I withdraw from school?

(a) You will be required to pay back any portion of the grant you

receive if you, without mitigating circumstances, fail to enroll,

withdraw or are expelled before the completion of a term.

(b) Within ten days of your failure to enroll or withdrawal or

expulsion you will be required to submit to the BIA or tribal

organization administering the program:

(1) The date of your failure to enroll, withdrawal or expulsion;

(2) A written statement with supporting documentation stating your

reasons for a failure to enroll, withdrawal or expulsion including

mitigating circumstances; and

(3) A copy of your request to the institution that all remaining

grant funds be returned to the BIA.

(c) The Bureau of Indian Affairs or tribal organization

administering the program will notify you in writing of arrangements to

pay the balance of funds based upon a Certificate of Agreement between

you and the organization awarding your grant or grant you a waiver from

repayment based upon mitigating circumstances.

Sec. 40.10 How do I appeal a grant decision?

You may appeal the decisions of any BIA official by following the

procedures in 25 CFR part 2, Appeals from Administrative Actions.

Sec. 40.11 What records are kept for the grant program?

(a) The Higher Education Office will maintain your files, a ledger

of all costs, and related records necessary to identify all

transactions involving expenditure of funds made available to you under

this program. These records:

(1) Identify your award and status;

(2) Demonstrate your eligibility;

(3) Document the amount of your award and the manner in which your

unmet need was calculated and met;

(4) Identify whether your enrollment was terminated;

(5) Identify collections based upon Certificates of Agreement; and

(6) Identify waivers from repayment.

(b) By November 1 of each year, the Education Line Officer will

submit a Higher Education Grant Program Annual Report for the preceding

academic year to the Director of the Office of Indian Education

Programs.

Sec. 40.12 How does a tribe estimate allowable administrative costs?

Tribes and tribal organizations that do not have a negotiated an

indirect cost rate with the Federal Government may use no more than 15

percent of available program funds to pay for indirect program costs

chargeable to the program.

Sec. 40.13 May a tribe prioritize its higher education grant program?

Yes.

(a) A tribe operating a higher education program may set program

priorities for categories of applicants. These priorities in order to

be given effect must be set out in the application materials provided

to grant applicants, and attached to the tribe's contract or annual

funding agreement. This tribal program priority plan may include a

listing of priorities, the reasons and supporting documentation.

(b) If a tribe desires to set a higher academic standard by

increasing the minimum grade point average, designate academic hours

needed in order to be classified as a full time student, set priorities

to first serve students residing near or within the exterior boundaries

of the reservation or on trust or restricted lands, the tribe may do

so.

Sec. 40.14 Are there requirements for information collection?

The information collection requirement contained in this part has

been approved by the Office of Management and Budget under the

Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d), and assigned

clearance number 1076-0106.

Dated: January 28, 1997.

Ada E. Deer,

Assistant Secretary--Indian Affairs.

[FR Doc. 97-4000 Filed 2-18-97; 8:45 am]

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