[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR600.21]



[Page 187-188]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 600_INSTITUTIONAL ELIGIBILITY UNDER THE HIGHER EDUCATION ACT OF 

1965, AS AMENDED--Table of Contents

 

            Subpart B_Procedures for Establishing Eligibility

 

Sec. 600.21  Updating application information.



    (a) Reporting requirements. Except as provided in paragraph (b) of 

this section, an eligible institution must report to the Secretary in a 

manner prescribed by the Secretary no later than 10 days after the 

change occurs, of any change in the following:

    (1) Its name, the name of a branch, or the name of a previously 

reported location.

    (2) Its address, the address of a branch, or the address of a 

previously reported location.

    (3) Its establishment of an accredited and licensed additional 

location at which it offers or will offer 50 percent or more of an 

educational program if the institution wants to disburse title IV, HEA 

program funds to students enrolled at that location, under the 

provisions in paragraph (d) of this section.

    (4) The way it measures program length (e.g., from clock hours to 

credit



[[Page 188]]



hours, or from semester hours to quarter hours).

    (5) A decrease in the level of program offering (e.g. the 

institution drops its graduate programs).

    (6) A person's ability to affect substantially the actions of the 

institution if that person did not previously have this ability. The 

Secretary considers a person to have this ability if the person--

    (i) Holds alone or together with another member or members of his or 

her family, at least a 25 percent ``ownership interest'' in the 

institution as defined in Sec. 600.31(b);

    (ii) Represents or holds, either alone or together with other 

persons, under a voting trust, power of attorney, proxy, or similar 

agreement at least a 25 percent ``ownership interest'' in the 

institution, as defined in Sec. 600.31(b); or

    (iii) Is a general partner, the chief executive officer, or chief 

financial officer of the institution.

    (7) The individual the institution designates under 34 CFR 

668.16(b)(1) as its title IV, HEA Program administrator.

    (8) The closure of a branch campus or additional location that the 

institution was required to report to the Secretary.

    (9) The governance of a public institution.

    (b) Additional reporting from institutions owned by publicly-traded 

corporations. An institution that is owned by a publicly-traded 

corporation must report to the Secretary any change in the information 

described in paragraph (a)(6) of this section when it notifies its 

accrediting agency, but no later than 10 days after the institution 

learns of the change.

    (c) Secretary's response to reporting. The Secretary notifies an 

institution if any reported changes affects the institution's 

eligibility, and the effective date of that change.

    (d) Disbursement rules related to additional locations. When an 

institution must report to the Secretary about an additional location 

under paragraph (a)(3) of this section, the institution may not disburse 

title IV, HEA funds to students at that location before it reports to 

the Secretary about that location. Unless it is an institution that must 

apply to the Secretary under Sec. 600.20(c)(1), once it reports to the 

Secretary about that location, the institution may disburse those funds 

to those students if that location is licensed and accredited.

    (e) Consequence of failure to report. An institution's failure to 

inform the Secretary of a change described in paragraph (a) of this 

section within the time period stated in that paragraph may result in 

adverse action against the institution.

    (f) Definition. A family member includes a person's--

    (1) Parent or stepparent, sibling or step-sibling, spouse, child or 

stepchild, or grandchild or step-grandchild;

    (2) Spouse's parent or stepparent, sibling or step-sibling, child or 

stepchild, or grandchild or step-grandchild;

    (3) Child's spouse; and

    (4) Sibling's spouse.



(Approved by the Office of Management and Budget under control number 

1845-0012)



(Authority: 20 U.S.C. 1001, 1002, 1088, and 1099c)



[65 FR 65673, Nov. 1, 2000, as amended at 67 FR 67070, Nov. 1, 2002]