[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR668.5]

[Page 413-414]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS--Table of Contents
 
                           Subpart A--General
 
Sec. 668.5  Written arrangements to provide educational programs.

    (a) Written arrangements between eligible institutions. If an 
eligible institution enters into a written arrangement with another 
eligible institution, or with a consortium of eligible institutions, 
under which the other eligible institution or consortium provides all or 
part of the educational program of students enrolled in the former 
institution, the Secretary considers that educational program to be an 
eligible program if it otherwise satisfies the requirements of 
Sec. 668.8.
    (b) Written arrangements for study-abroad. Under a study abroad 
program, if an eligible institution enters into a written arrangement 
with a foreign institution, or an organization acting on behalf of a 
foreign institution, under which the foreign institution provides part 
of the educational program of students enrolled in the eligible 
institution, the Secretary considers that educational program to be an 
eligible program if it otherwise satisfies the requirements of 
paragraphs (c)(1) through (c)(3) of this section.
    (c) Written arrangements between an eligible institution and an 
ineligible institution or organization. If an eligible institution 
enters into a written arrangement with an institution or organization 
that is not an eligible institution under which the ineligible 
institution or organization provides part of the educational program of 
students enrolled in the eligible institution, the Secretary considers 
that educational program to be an eligible program if--
    (1) The ineligible institution or organization has not had its 
eligibility to participate in the title IV, HEA programs terminated by 
the Secretary, or has not voluntarily withdrawn from participation in 
those programs under a termination, show-cause, suspension, or similar 
type proceeding initiated by the institution's State licensing agency, 
accrediting agency, guarantor, or by the Secretary;
    (2) The educational program otherwise satisfies the requirements of 
Sec. 668.8; and
    (3)(i) The ineligible institution or organization provides not more 
than 25 percent of the educational program; or
    (ii)(A) The ineligible institution or organization provides more 
than 25 percent but not more than 50 percent of the educational program;
    (B) The eligible institution and the ineligible institution or 
organization are not owned or controlled by the same individual, 
partnership, or corporation; and
    (C) The eligible institution's accrediting agency, or if the 
institution is a public postsecondary vocational educational 
institution, the State agency listed in the Federal Register in 
accordance with 34 CFR part 603, has specifically determined that the 
institution's arrangement meets the agency's standards for the 
contracting out of educational services.
    (d) Administration of title IV, HEA programs. (1) If an institution 
enters into a written arrangement as described in paragraph (a), (b), or 
(c) of this section, except as provided in paragraph (d)(2) of this 
section, the institution at which the student is enrolled as a regular 
student must determine the student's eligibility for title IV, HEA 
program funds, and must calculate and disburse those funds to that 
student.
    (2) In the case of a written arrangement between eligible 
institutions, the institutions may agree in writing to have any eligible 
institution in the written arrangement make those calculations and 
disbursements, and the Secretary does not consider that institution to 
be a third-party servicer for that arrangement.
    (3) The institution that calculates and disburses a student's title 
IV, HEA

[[Page 414]]

program assistance under paragraph (d)(1) or (d)(2) of this section 
must--
    (i) Take into account all the hours in which the student enrolls at 
each institution that apply to the student's degree or certificate when 
determining the student's enrollment status and cost of attendance; and 
(ii) Maintain all records regarding the student's eligibility for and 
receipt of title IV, HEA program funds.

(Authority: 20 U.S.C. 1094)

[65 FR 65674, Nov. 1, 2000]