[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: 34CFR607.4]



[Page 232-233]

 

                           TITLE 34--EDUCATION

 

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

 

PART 607_STRENGTHENING INSTITUTIONS PROGRAM--Table of Contents

 

                            Subpart A_General

 

Sec. 607.4  What are low educational and general expenditures?



    (a)(1) Except as provided in paragraph (b) of this section, for the 

purpose of Sec. 6072(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 of comparable institutions that offer similar 

institution in that year.

    (2) For the purpose of paragraph (a)(1) of this section, the 

Secretary determines the average educational and general expenditure per 

FTE undergraduate student for institutions with graduate students that 

do not differentiate between graduate and undergraduate E&G 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) 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



[[Page 233]]



    (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. 1058 and 1067)



[59 FR 41922, Aug. 15, 1994]