[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: 34CFR674.2] [Page 575-576] TITLE 34--EDUCATION DEPARTMENT OF EDUCATION PART 674--FEDERAL PERKINS LOAN PROGRAM--Table of Contents Subpart A--General Provisions Sec. 674.2 Definitions. (a) The definitions of the following terms used in this part are set forth in subpart A of the Student Assistance General Provisions, 34 CFR part 668: Academic year Award year Defense loan Enrolled Federal Family Education Loan (FFEL) programs Federal Pell Grant Federal Perkins loan Federal Perkins Loan Program Federal PLUS Program Federal SLS Program Federal Supplemental Educational Opportunity Grant (FSEOG) Program Federal Work-Study (FWS) Program Full-time student HEA National Defense Student Loan Program National Direct Student Loan (NDSL) Program Payment period Secretary (b) The Secretary defines other terms used in this part as follows: Default: The failure of a borrower to make an installment payment when due or to comply with other terms of the promissory note or written repayment agreement. Enter repayment: The day following the expiration of the initial grace period or the day the borrower waives the initial grace period. This date does not change if a forbearance, deferment, or cancellation is granted after the borrower enters repayment. *Expected family contribution (EFC): The amount a student and his or her spouse and family are expected to pay toward the student's cost of attendance. Federal capital contribution (FCC): Federal funds allocated or reallocated to an institution for deposit into the institution's Fund under section 462 of the HEA. *Financial need: The difference between a student's cost of attendance and his or her EFC. Fund (Federal Perkins Loan Fund): A fund established and maintained according to Sec. 674.8. Graduate or professional student: A student who-- (1) Is enrolled in a program or course above the baccalaureate level at an institution of higher education or is enrolled in a program leading to a first professional degree; (2) Has completed the equivalent of at least three years of full- time study at an institution of higher education, either prior to entrance into the program or as part of the program itself; and (3) Is not receiving title IV aid as an undergraduate student for the same period of enrollment. Half-time graduate or professional student: An enrolled graduate or professional student who is carrying a half-time academic workload as determined by the institution according to its own standards and practices. Half-time undergraduate student: An enrolled undergraduate student who is carrying a half-time academic workload, as determined by the institution, which amounts to at least half the workload of a full-time student. However, the institution's half-time standards must equal or exceed the equivalent of one or more of the following minimum requirements: (1) 6 semester hours or 6 quarter hours per academic term for an institution using a standard semester, trimester, or quarter system. (2) 12 semester hours or 18 quarter hours per academic year for an institution using credit hours to measure progress, but not using a standard semester, trimester, or quarter system; or the prorated equivalent for a program of less than one year. (3) 12 clock hours per week for an institution using clock hours. (4) 12 hours of preparation per week for a student enrolled in a program of study by correspondence. Regardless of the workload, no student enrolled solely in correspondence study is considered more than half-time. [[Page 576]] Initial grace period: That period which immediately follows a period of enrollment and immediately precedes the date of the first required repayment on a loan. This period is generally nine months for Federal Perkins loans, Defense loans, and NDSLs made before October 1, 1980, and six months for other Direct loans. *Institution of higher education (institution): A public or private nonprofit institution of higher education, a proprietary institution of higher education, or a postsecondary vocational institution. Institutional capital contribution (ICC): Institutional funds contributed to establish or maintain a Fund. Making of a loan: When the institution makes the first disbursement of a loan to a student for an award year. Master Promissory Note (MPN): A promissory note under which the borrower may receive loans for a single award year or multiple award years. National credit bureau: Any one of the national credit bureaus with which the Secretary has an agreement. *Need-based employment: Employment provided by an institution itself or by another entity to a student who has demonstrated to the institution or the entity (through standards or methods it establishes) a financial need for the earnings from that employment for the purpose of defraying educational costs of attendance for the award year for which the employment is provided. Post-deferment grace period: That period of six consecutive months which immediately follows the end of certain periods of deferment and precedes the date on which the borrower is required to resume repayment on a loan. Satisfactory repayment arrangement: For purposes of regaining eligibility for grant, loan, or work assistance under Title IV of the HEA, to the extent that the borrower is otherwise eligible, the making of six (6) on-time, consecutive, monthly payments on a defaulted loan. A borrower may obtain the benefit of this paragraph with respect to renewed eligibility once on a defaulted loan. Student loan: For this part means an NDSL Loan, Defense Loan, or a Federal Perkins Loan. Total monthly gross income: The gross amount of income received by the borrower from employment (either full-time or part-time) and from other sources. Undergraduate student: A student enrolled at an institution of higher education who is in an undergraduate course of study which usually does not exceed four academic years, or is enrolled in a four to five academic year program designed to lead to a first degree. A student enrolled in a program of any other length is considered an undergraduate student for only the first four academic years of that program. (Authority: 20 U.S.C. 1087aa-1087hh) [52 FR 45747, Dec. 1, 1987, as amended at 53 FR 52580, Dec. 28, 1988; 57 FR 32344, July 21, 1992; 59 FR 61404, 61415-61416, Nov. 30, 1994; 60 FR 61814, Dec. 1, 1995; 61 FR 60608, Nov. 29, 1996; 64 FR 58308, Oct. 28, 1999; 65 FR 18002, Apr. 6, 2000; 67 FR 67076, Nov. 1, 2002]