Eligibility Designations and Applications for Waiving Eligibility Requirements; Programs Under Parts A and F of Title III and Programs Under Title V of the Higher Education Act of 1965, as Amended (HEA)

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Published

December 16, 2021

Issuing agencies

Education Department

Abstract

The Department announces the process for designation of eligible institutions and invites applications for waivers of eligibility requirements for fiscal year (FY) 2022 for the programs under the Higher Education Act of 1965, as amended (HEA), listed in Supplementary Information.

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<title>Federal Register, Volume 86 Issue 239 (Thursday, December 16, 2021)</title>
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[Federal Register Volume 86, Number 239 (Thursday, December 16, 2021)]
[Notices]
[Pages 71470-71474]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27212]

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DEPARTMENT OF EDUCATION

Eligibility Designations and Applications for Waiving Eligibility
Requirements; Programs Under Parts A and F of Title III and Programs
Under Title V of the Higher Education Act of 1965, as Amended (HEA)

AGENCY: Office of Postsecondary Education, Department of Education
(Department).

[[Page 71471]]

ACTION: Notice.

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SUMMARY: The Department announces the process for designation of
eligible institutions and invites applications for waivers of
eligibility requirements for fiscal year (FY) 2022 for the programs
under the Higher Education Act of 1965, as amended (HEA), listed in
Supplementary Information.

DATES:
Applications Available: December 16, 2021.
Deadline for Transmittal of Applications: January 21, 2022.

FOR FURTHER INFORMATION CONTACT: Christopher Smith, Institutional
Service, U.S. Department of Education, 400 Maryland Avenue SW, Room
2B108, Washington, DC 20202. Telephone: (202) 453-7946 or (202) 262-
7141. Email: <a href="/cdn-cgi/l/email-protection#edae859f849e99829d85889fc3be80849985ad8889c38a829b"><span class="__cf_email__" data-cfemail="014269736872756e716964732f526c6875694164652f666e77">[email&#160;protected]</span></a>; or Jason Cottrell, Ph.D.,
Institutional Service, U.S. Department of Education, 400 Maryland
Avenue SW, Room 2B127, Washington, DC 20202. Telephone: (202) 453-7530
or (202) 262-1833. Email: <a href="/cdn-cgi/l/email-protection#652f04160a0b4b260a1111170009092500014b020a13"><span class="__cf_email__" data-cfemail="abe1cad8c4c585e8c4dfdfd9cec7c7ebcecf85ccc4dd">[email&#160;protected]</span></a>.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: The Department announces the process for
designation of eligible institutions and invites applications for
waivers of eligibility requirements for FY 2022 for the following
programs:
1. Programs authorized under title III, part A of the HEA:
Strengthening Institutions Program (Part A SIP), Alaska Native and
Native Hawaiian-Serving Institutions (Part A ANNH), Predominantly Black
Institutions (Part A PBI), Native American-Serving Nontribal
Institutions (Part A NASNTI), and Asian American and Native American
Pacific Islander-Serving Institutions (Part A AANAPISI).
2. Programs authorized under title III, part F of the HEA:
Hispanic-Serving Institutions STEM and Articulation (Part F HSI STEM
and Articulation), Predominantly Black Institutions (Part F PBI),
Alaska Native and Native Hawaiian-Serving Institutions (Part F ANNH),
Native American-Serving Nontribal Institutions (Part F NASNTI), and
Asian American and Native American Pacific Islander-Serving
Institutions (Part F AANAPISI).
3. Programs authorized under title V of the HEA: Developing
Hispanic-Serving Institutions (HSI) and Promoting Postbaccalaureate
Opportunities for Hispanic Americans (PPOHA).

Full Text of Announcement

I. Funding Opportunity Description

Purpose of Programs: The Part A SIP, Part A ANNH, Part A PBI, Part
A NASNTI, and Part A AANAPISI programs are authorized under title III,
part A of the HEA. The Part F HSI STEM and Articulation, Part F PBI,
Part F ANNH, Part F NASNTI, and Part F AANAPISI programs are authorized
under title III, part F of the HEA. The HSI and PPOHA programs are
authorized under title V of the HEA. Please note that certain programs
addressed in this notice have the same or similar names as other
programs that are authorized under a different statutory authority. For
this reason, we specify the statutory authority as part of the acronym
for certain programs.
Under the programs discussed above, institutions are eligible to
apply for grants if they meet specific statutory and regulatory
eligibility requirements. An institution of higher education that is
designated as an eligible institution may also receive a waiver of
certain non-Federal cost-sharing requirements for one year under the
Federal Supplemental Educational Opportunity Grant (FSEOG) program
authorized by title IV, part A of the HEA and the Federal Work-Study
(FWS) program authorized by section 443 of the HEA. Qualified
(eligible) institutions may receive the FSEOG and FWS waivers for one
year even if they do not receive a grant under a title III or V grant
program. An applicant that receives a grant from the Student Support
Services (SSS) program that is authorized under section 402D of the
HEA, 20 U.S.C. 1070a-14, may receive a waiver of the required non-
Federal cost share for institutions for the duration of the grant. An
applicant that receives a grant from the Undergraduate International
Studies and Foreign Language (UISFL) program that is authorized under
section 604 of the HEA, 20 U.S.C. 1124, may receive a waiver or
reduction of the required non-Federal cost share for institutions for
the duration of the grant.
Sections 312 and 502 of the HEA, 34 CFR 607.2-607.5, and 34 CFR
606.2-606.5 include most of the basic eligibility requirements for
grant programs authorized under titles III and V of the HEA. Sections
312(b)(1)(B) and 502(a)(2)(A) of the HEA provide that, to be eligible
for these programs, an institution of higher education's average
``educational and general expenditures'' (E&G) per full-time equivalent
(FTE) undergraduate student must be less than the average E&G
expenditures per FTE undergraduate student of institutions that offer
similar instruction in that year.
The National Center for Education Statistics (NCES) calculates Core
Expenses per FTE of institutions, a statistic like E&G per FTE. Both
E&G per FTE and Core Expenses per FTE are based on regular operational
expenditures of institutions (excluding auxiliary enterprises,
independent operations, and hospital expenses). They differ only in
that E&G per FTE is based on fall undergraduate enrollment, while Core
Expenses per FTE is based on 12-month undergraduate enrollment for the
academic year.
To avoid inconsistency in the data submitted to, and produced by,
the Department, for the purpose of sections 312(b)(1)(B) and
502(a)(2)(A) of the HEA, E&G per FTE is calculated using the same
methodology as Core Expenses per FTE. Accordingly, the Department will
apply the NCES methodology for calculating Core Expenses per FTE.
Institutions requesting an eligibility exemption determination must use
the Core Expenses per FTE data reported to NCES' Integrated
Postsecondary Education Data System (IPEDS) for the most currently
available academic year, in this case academic year 2019-2020.
Special Note: To qualify as an eligible institution under the grant
programs listed in this notice, your institution must satisfy several
criteria. For most of these programs, these criteria include those that
relate to the enrollment of needy students and to the Core Expenses per
FTE student count for a specified base year. The most recent data
available in IPEDS for Core Expenses per FTE are for base year 2019-
2020. To award FY 2022 grants in a timely manner, we will use these
data to evaluate eligibility.
Accordingly, each institution interested in either applying for a
new grant under the title III or V programs addressed in this notice,
or requesting a waiver of the non-Federal cost share, must be
designated as an eligible institution in FY 2022. Under the HEA, any
institution interested in applying for a grant under any of these
programs must first be designated as an eligible institution. See 34
CFR 606.5 and 607.5.
Note: Please be advised that final eligibility is program specific.
Applicants should refer to the program in question for programmatic
requirements. Further information regarding eligibility is set forth
below.
Eligible applicants: The eligibility requirements for the programs
authorized under part A of title III of the HEA are in sections 312 and
317-320 of the HEA (20 U.S.C. 1058, 1059d-1059g) and in 34 CFR 607.2-
607.5. The

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regulations may be accessed at <a href="http://www.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.607&rgn=div5">www.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.607&rgn=div5</a>. The eligibility requirements for the programs authorized by part F
of title III of the HEA are in section 371 of the HEA (20 U.S.C.
1067q). There are currently no specific regulations for these programs.
The eligibility requirements for the title V HSI program are in
part A of title V of the HEA and in 34 CFR 606.2-606.5. The regulations
may be accessed at <a href="http://www.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.606&rgn=div5l">www.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.606&rgn=div5l</a>.
The requirements for the PPOHA program are in part B of title V of
the HEA and in the notice of final requirements published in the
Federal Register on July 27, 2010 (75 FR 44055), and in 34 CFR 606.2(a)
and (b) and 606.3-606.5.
The Department has instituted a process known as the Eligibility
Matrix (EM), under which we use information institutions submitted to
IPEDS to determine which institutions meet the basic eligibility
requirements for the programs authorized by title III or V of the HEA
listed above. To make eligibility determinations for FY 2022, we use an
institution's 2019-2020 enrollment and fiscal data. Beginning December
16, 2021, an institution will be able to review the Department's EM
eligibility decision by checking the eligibility system linked through
the Department's Institutional Service Eligibility website: <a href="http://www2.ed.gov/about/offices/list/ope/idues/eligibility.html">http://www2.ed.gov/about/offices/list/ope/idues/eligibility.html</a>. The direct
link is <a href="https://HEPIS.ed.gov/">https://HEPIS.ed.gov/</a>.
The EM is a read-only worksheet that lists all potentially eligible
postsecondary institutions. If the EM entry for your institution
indicates your institution is eligible for a particular program grant,
you will not need to apply for eligibility or submit a waiver request
as described in this notice. Rather, if you choose to apply for the
grant, you may print out the eligibility letter directly. If your
institution intends to apply for a program grant for which your EM
entry does not show your institution is eligible, you must submit the
application discussed in this notice before the application deadline of
January 21, 2022.
To check your institution's eligibility in the EM, go to <a href="https://HEPIS.ed.gov/">https://HEPIS.ed.gov/</a>, and log into the system using your email address and
password. If you are not sure whether you have an account in the
system, click the ``New User'' button. If you have an account, the
system will walk you through setup. Note that it may take up to five
business days to verify user identity and to complete new account
setup, so please allow enough time to complete the application. If the
Grant Eligibility Application (GEA) system is open for new
applications, you may check your institution's eligibility status by
clicking the ``View pre-Eligibility Information'' button. Your
institution's eligibility information will display.
If the EM does not show that your institution is eligible for a
program, or if your institution does not appear in the eligibility
system, or if you disagree with the eligibility determination reflected
in the eligibility system, you can apply for a waiver or
reconsideration using the process described in this notice. The
application process mirrors that used in previous years: Choose the
waiver option on the website at <a href="https://HEPIS.ed.gov/">https://HEPIS.ed.gov/</a> and submit your
institution's application.
Please note that through this process, the Department does not
certify, nor designate, an institution as a Historically Black College
or University, Tribally Controlled College or University, Minority-
Serving Institution, or Hispanic-Serving Institution. The Department's
EM eligibility determination that an institution is eligible solely
relates to the institution's ability to apply for and receive grants
under certain programs as discussed in this notice.
Note: Institutions that submit a waiver request for either the Core
Expenses per FTE or the Needy Student requirement must submit the
required documents and supporting data and evidence by the deadline.
All reviews and decisions will be made approximately two weeks after
the deadline.
Enrollment of Needy Students: As noted above, to qualify as an
eligible institution under the grant programs listed in this notice,
your institution must satisfy several criteria, including those that
relate to the enrollment of needy students and to the Core Expenses per
FTE student count for a specified base year.
As to the enrollment of needy students, for programs under titles
III and V (excluding the PBI programs), an institution is considered to
have an enrollment of needy students if it meets either of the
following two criteria: (1) At least 50 percent of its degree-seeking
students received financial assistance under the Federal Pell Grant,
FSEOG, or FWS programs; or (2) the percentage of its undergraduate
degree-seeking students who were enrolled on at least a half-time basis
and received Federal Pell Grants exceeded the median percentage of
undergraduate degree students who were enrolled on at least a half-time
basis and received Federal Pell Grants at comparable institutions that
offer similar instruction.
To qualify under the second criterion, an institution's Federal
Pell Grant percentage for base year 2019-2020 must be more than the
median for its category of comparable institutions provided in the
2019-2020 Median Pell Grant and Average Core Expenses per FTE Student
Table in this notice. If your institution qualifies only under the
first criterion, you must submit an application containing the data
necessary to satisfy the first criterion (showing at least 50 percent
of your degree-seeking students received financial assistance under one
of several Federal student aid programs (the Federal Pell Grant, FSEOG,
or FWS programs)), since these data are not available in IPEDS.
``Enrollment of Needy Students'' for purposes of the Part A PBI
program is separately defined in section 318(b)(2) of the HEA, and for
purposes of the Part F PBI program is defined in section 371(c)(3) of
the HEA.
Core Expenses per FTE Student: For each of the following programs,
an institution should compare its base year 2019-2020 Core Expenses per
FTE student to the average Core Expenses per FTE student for its
category of comparable institutions using the 2019-2020 Median Pell
Grant and Average Core Expenses per FTE Student Table in this notice:
Title III, Part A SIP; Part A ANNH; Part A PBI; Part A NASNTI; Part A
AANAPISI; Title III, Part F HSI STEM and Articulation; Part F PBI; Part
F ANNH; Part F NASNTI; Part F AANAPISI; Title V, Part A HSI; and Title
V, Part B PPOHA. An institution satisfies this program eligibility
requirement if its Core Expenses for the 2019-2020 base year are less
than the average Core Expenses of its comparable institutional
category.
Core Expenses are defined as the total expenses for the essential
education activities of the institution. Core Expenses for public
institutions reporting under the Governmental Accounting Standards
Board (GASB) requirements include expenses for instruction, research,
public service, academic support, student services, institutional
support, operation and maintenance of plant, depreciation, scholarships
and fellowships, interest, and other operating and non-operating
expenses. Core Expenses for institutions reporting under the Financial
Accounting Standards Board (FASB) standards (primarily private, not-
for-profit, and for-profit institutions)

[[Page 71473]]

include expenses for instruction, research, public service, academic
support, student services, institutional support, net grant aid to
students, and other expenses. Core Expenses do not include Federal
student aid for the purposes of eligibility. For both FASB and GASB
institutions, Core Expenses do not include expenses for auxiliary
enterprises (e.g., bookstores, dormitories), hospitals, and independent
operations.
The following table identifies base year 2019-2020 median Federal
Pell Grant percentages and average Core Expenses per FTE student for
the four categories of comparable institutions:

------------------------------------------------------------------------
Base year 2019- Base year 2019-
2020 median 2020 average
Type of institution pell grant core expenses
percentage per FTE
student
------------------------------------------------------------------------
Two-year Public Institutions............ 32 $15,641
Two-year Non-profit Private Institutions 54 18,412
Four-year Public Institutions........... 35 34,275
Four-year Non-profit Private 35 42,922
Institutions...........................
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Waiver Information: Institutions that do not meet the needy student
enrollment requirement or the Core Expenses per FTE requirement may
apply to the Secretary for a waiver of these requirements, as described
in sections 392 and 522 of the HEA, and in the implementing regulations
at 34 CFR 606.3(b), 606.4(c) and (d), 607.3(b), and 607.4(c) and (d).
Institutions requesting a waiver of the needy student enrollment
requirement or the Core Expenses per FTE requirement must include in
their application detailed evidence supporting the waiver request, as
described in the instructions for completing the application.
The regulations governing the Secretary's authority to grant a
waiver of the needy student requirement refer to ``low-income''
students or families, at 34 CFR 606.3(b)(2) and (3) and 607.3(b)(2) and
(3). The regulations at 34 CFR 606.3(c) and 607.3(c) define ``low-
income'' as an amount that does not exceed 150 percent of the amount
equal to the poverty level, as established by the U.S. Census Bureau.
For purposes of this waiver provision, the following table sets
forth the low-income levels (at 150 percent) for various family sizes:

2020 Annual Low-Income Levels
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Family income
for the 48
contiguous Family income Family income
Size of family unit states, DC, for Alaska for Hawaii
and outlying
jurisdictions
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1............................................................... $19,140 $23,925 $22,020
2............................................................... 25,860 32,325 29,745
3............................................................... 32,580 30,725 37,470
4............................................................... 39,300 49,125 45,195
5............................................................... 46,020 57,525 52,920
6............................................................... 52,740 65,925 60,645
7............................................................... 59,460 74,325 68,370
8............................................................... 66,180 82,725 76,095
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Note: We use the 2020 annual low-income levels because those are
the amounts that apply to the family income reported by students
enrolled for the fall 2019 semester. For family units with more than
eight members, add the following amount for each additional family
member: $6,720 for the contiguous 48 States, the District of Columbia,
and outlying jurisdictions; $8,400 for Alaska; and $7,725 for Hawaii.
The figures shown under family income represent amounts equal to
150 percent of the family income levels established by the U.S. Census
Bureau for determining poverty status. The poverty guidelines were
published on January 17, 2020, in the Federal Register by the U.S.
Department of Health and Human Services (85 FR 3060), with an effective
date of January 14, 2020.
Information about ``metropolitan statistical areas'' referenced in
34 CFR 606.3(b)(4) and 607.3(b)(4) may be obtained at: <a href="http://www.census.gov/prod/2010pubs/10smadb/appendixc.pdf">www.census.gov/prod/2010pubs/10smadb/appendixc.pdf</a> and <a href="http://www.census.gov/prod/2008pubs/07ccdb/appd.pdf">www.census.gov/prod/2008pubs/07ccdb/appd.pdf</a>.
Electronic Submission of Waiver Applications: If your institution
does not appear in the eligibility system as eligible for a program to
which you seek to apply, you must apply for a waiver of the eligibility
requirements. To request a waiver, you must upload a narrative at
<a href="https://HEPIS.ed.gov/">https://HEPIS.ed.gov/</a>.
Exception to the Electronic Submission Requirement: We discourage
paper applications, but if electronic submission is not possible (e.g.,
you do not have access to the internet), you must provide a written
statement that you intend to submit a paper application. This written
statement must be postmarked no later than two weeks before the
application deadline date (14 calendar days or, if the 14th calendar
day before the application deadline date falls on a Federal holiday,
the next business day following the Federal holiday).
Please send this statement to one of the persons listed in the FOR
FURTHER INFORMATION CONTACT section of this notice.
If you submit a paper application, you must mail your application,
on or before the application deadline date, to the

[[Page 71474]]

Department at the following address: U.S. Department of Education,
Attention: Jason Cottrell, 400 Maryland Avenue SW, Room 2B127,
Washington, DC 20202.
You must show proof of mailing consisting of one of the following:
(1) A legibly dated U.S. Postal Service postmark.
(2) A legible mail receipt with the date of mailing stamped by the
U.S. Postal Service.
(3) A dated shipping label, invoice, or receipt from a commercial
carrier.
(4) Any other proof of mailing acceptable to the Secretary of the
U.S. Department of Education.
If you mail your application through the U.S. Postal Service, we do
not accept either of the following as proof of mailing:
(1) A private metered postmark.
(2) A mail receipt that is not dated by the U.S. Postal Service.
Note: The U.S. Postal Service does not uniformly provide a dated
postmark. Before relying on this method, you should check with your
local post office.
We will not consider applications postmarked after the application
deadline date.
Applicable Regulations: (a) The Education Department General
Administrative Regulations (EDGAR) in 34 CFR parts 75, 77, 79, 82, 84,
86, 97, 98, and 99. (b) The Office of Management and Budget Guidelines
to Agencies on Governmentwide Debarment and Suspension (Nonprocurement)
in 2 CFR 180, as adopted and amended as regulations of the Department
in 2 CFR part 3485. (c) The Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards in 2 CFR part
200, as adopted and amended as regulations of the Department in 2 CFR
part 3474. (d) The regulations for certain title III programs in 34 CFR
part 607, and for the HSI program in 34 CFR part 606. (e) The notice of
final requirements for the PPOHA program published in the Federal
Register on July 27, 2010 (75 FR 44055).
Note: The regulations in 34 CFR part 79 apply to all applicants
except federally recognized Indian Tribes.
Note: The regulations in 34 CFR part 86 apply to institutions of
higher education only.
Note: There are no program-specific regulations for the Part A PBI,
Part A NASNTI, and Part A AANAPISI programs or any of the title III,
part F programs. Also, the HEA has been amended since the Department
last issued regulations for programs established under titles III and V
of that statute. Accordingly, we encourage each potential applicant to
read applicable sections of the HEA to fully understand all applicable
program eligibility requirements.

II. Other Information

Accessible Format: On request to one of the program contact persons
listed under FOR FURTHER INFORMATION CONTACT, individuals with
disabilities can obtain this document and a copy of the application
package in an accessible format. The Department will provide the
requestor with an accessible format that may include Rich Text Format
(RTF) or text format (txt), a thumb drive, an MP3 file, braille, large
print, audiotape, or compact disc, or other accessible format.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at <a href="http://www.govinfo.gov">www.govinfo.gov</a>. At this site you can view this
document, as well as all other documents of this Department published
in the Federal Register, in text or Portable Document Format (PDF). To
use PDF, you must have Adobe Acrobat Reader, which is available free at
the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at
<a href="http://www.federalregister.gov">www.federalregister.gov</a>. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.

Annmarie Weisman,
Deputy Assistant Secretary for Policy, Planning and Innovation, Office
of Postsecondary Education.
[FR Doc. 2021-27212 Filed 12-15-21; 8:45 am]
BILLING CODE 4000-01-P

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