[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: 34CFR600.40]



[Page 191-192]

 

                           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 D_Loss of Eligibility

 

Sec. 600.40  Loss of eligibility.



    Source: 59 FR 22336, Apr. 29, 1994, unless otherwise noted.





    (a)(1) Except as provided in paragraphs (a) (2) and (3) of this 

section, an institution, or a location or educational program of an 

institution, loses its eligibility on the date that--

    (i) The institution, location, or educational program fails to meet 

any of



[[Page 192]]



the eligibility requirements of this part;

    (ii) The institution or location permanently closes;

    (iii) The institution or location ceases to provide educational 

programs for a reason other than a normal vacation period or a natural 

disaster that directly affects the institution, particular location, or 

the students of the institution or location; or

    (iv) For purposes of the title IV, HEA programs--

    (A) The institution's period of participation as specified under 34 

CFR 668.13 expires; or

    (B) The institution's provisional certification is revoked under 34 

CFR 668.13.

    (2) If an institution loses its eligibility because it violated the 

requirements of Sec. 600.5(a)(8), as evidenced by the determination 

under provisions contained in Sec. 600.5(d), it loses its eligibility 

on the last day of the fiscal year used in Sec. 600.5(d), except that 

if an institution's latest fiscal year was described in Sec. 

600.7(h)(1), it loses its eligibility as of June 30, 1994.

    (3) If an institution loses its eligibility under the provisions of 

Sec. 600.7(a)(1), it loses its eligibility on the last day of the award 

year being evaluated under that provision.

    (b) If the Secretary undertakes to terminate the eligibility of an 

institution because it violated the provisions of Sec. 600.5(a)(8) or 

Sec. 600.7(a), and the institution requests a hearing, the presiding 

official must terminate the institution's eligibility if it violated 

those provisions, notwithstanding its status at the time of the hearing.

    (c)(1) If the Secretary designates an institution or any of its 

educational programs or locations as eligible on the basis of inaccurate 

information or documentation, the Secretary's designation is void from 

the date the Secretary made the designation, and the institution or 

program or location, as applicable, never qualified as eligible.

    (2) If an institution closes its main campus or stops providing any 

educational programs on its main campus, it loses its eligibility as an 

institution, and that loss of eligibility includes all its locations and 

all its programs. Its loss of eligibility is effective on the date it 

closes that campus or stops providing any educational program at that 

campus.

    (d) Except as otherwise provided in this part, if an institution 

ceases to satisfy any of the requirements for eligibility under this 

part--

    (1) It must notify the Secretary within 30 days of the date that it 

ceases to satisfy that requirement; and

    (2) It becomes ineligible to continue to participate in any HEA 

program as of the date it ceases to satisfy any of the requirements.



(Authority: 20 U.S.C. 1088, 1099a-3, and 1141)



[59 FR 22336, Apr. 29, 1994, as amended at 63 FR 40622, July 29, 1998]