[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR606.4]

[Page 218-219]
 
                           TITLE 34--EDUCATION
 
             CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION,
                         DEPARTMENT OF EDUCATION
 
PART 606--DEVELOPING HISPANIC-SERVING INSTITUTIONS PROGRAM--Table of Contents
 
                           Subpart A--General
 
Sec. 606.4  What are low educational and general expenditures?

    (a)(1) Except as provided in paragraph (b) of this section, for the 
purpose of Sec. 606.2(a)(2), an applicant institution's average 
educational and general expenditures per full-time equivalent 
undergraduate student in the base year must be less than the average 
educational and general expenditures per full-time equivalent 
undergraduate student in that year of comparable institutions that offer 
similar instruction.
    (2) For the purpose of paragraph (a)(1) of this section, the 
Secretary determines the average educational and general expenditure per 
full-time equivalent undergraduate student for institutions with 
graduate students that do not differentiate between graduate and 
undergraduate educational and general expenditures by discounting the 
graduate enrollment using a factor of 2.5 times the number of graduate 
students.
    (b) Each year, the Secretary notifies prospective applicants through 
a notice in the Federal Register of the average educational and general 
expenditures per full-time equivalent undergraduate student at 
comparable institutions that offer similar instruction.
    (c) The Secretary may waive the requirement contained in paragraph 
(a)

[[Page 219]]

of this section, if the Secretary determines, based upon persuasive 
evidence provided by the institution, that--
    (1) The institution's failure to satisfy the criteria in paragraph 
(a) of this section was due to factors which, if used in determining 
compliance with those criteria, distorted that determination; and
    (2) The institution's designation as an eligible institution under 
this part is otherwise consistent with the purposes of this part.
    (d) For the purpose of paragraph (c)(1) of this section, the 
Secretary considers that the following factors may distort an 
institution's educational and general expenditures per full-time 
equivalent undergraduate student--
    (1) Low student enrollment;
    (2) Location of the institution in an unusually high cost-of-living 
area;
    (3) High energy costs;
    (4) An increase in State funding that was part of a desegregation 
plan for higher education; or
    (5) Operation of high cost professional schools such as medical or 
dental schools.

(Authority: 20 U.S.C. 1101a and 1103a)