[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: 34CFR668.5]



[Page 400-401]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY 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the Secretary, or has not voluntarily withdrawn from participation in 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.



[[Page 401]]



    (3) The institution that calculates and disburses a student's title 

IV, HEA 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]