[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR691.75]

[Page 921-922]
 
                           TITLE 34--EDUCATION
 
 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 691_ACADEMIC COMPETITIVENESS GRANT (ACG) AND NATIONAL SCIENCE AND 
 
               Subpart G_Administration of Grant Payments
 
Sec. 691.75  Determination of eligibility for payment.

    (a) For each payment period, an institution may pay a grant under 
this part to a student only after it determines that the student--
    (1) Qualifies as a student who is eligible under Sec. 691.15;
    (2) Is enrolled as an undergraduate student in an eligible program;

[[Page 922]]

    (3) If enrolled in a self-paced credit-hour program without terms or 
a self-paced clock-hour program, as described in paragraph (e), is 
progressing as a full-time student after completing at least--
    (i) Fifty percent of the credit or clock hours of the payment period 
for which the student is being paid; or
    (ii) For a credit-hour program, 50 percent of the academic 
coursework of the payment period for which the student is being paid if 
the institution is unable to determine when the student has completed 
one-half of the credit hours of the payment period; and
    (4) If enrolled in a credit-hour program without terms or a clock-
hour program, has completed the payment period as defined in 34 CFR 
668.4 for which he or she has been paid a grant.
    (b)(1) If an institution determines at the beginning of a payment 
period that a student is not maintaining satisfactory progress, but 
reverses that determination before the end of the payment period, the 
institution may pay a grant under this part to the student for the 
entire payment period.
    (2) For purposes of the ACG Program, if an institution determines at 
the beginning of a payment period that a student enrolled in the second 
academic year of his or her eligible program is not maintaining the 
necessary GPA for an ACG under Sec. 691.15(b)(1)(iii)(C), but reverses 
that determination before the end of the payment period, the institution 
may pay an ACG to the student for the entire payment period.
    (3) For purposes of the National SMART Grant Program, if an 
institution determines at the beginning of a payment period that a 
student is not maintaining the necessary GPA for a National SMART Grant 
under Sec. 691.15(c)(3) or is not pursuing a required major under Sec. 
691.15(c)(2), but reverses that determination before the end of the 
payment period, the institution may pay a National SMART Grant to the 
student for the entire payment period.
    (c) If an institution determines at the beginning of a payment 
period that a student is not maintaining satisfactory progress or the 
necessary GPA for an ACG under Sec. 691.15(b)(1)(iii)(C), a National 
SMART Grant under Sec. 691.15(c)(3), or, in the case of a National 
SMART Grant is not pursuing a required major under Sec. 691.15(c)(2), 
but reverses that determination after the end of the payment period, the 
institution may neither pay the student an ACG or a National SMART Grant 
for that payment period nor make adjustments in subsequent payments to 
compensate for the loss of aid for that period.
    (d) Subject to the requirement of paragraph (d)(2), an institution 
may make one disbursement for a payment period to an otherwise eligible 
student if--
    (1)(i) For the first payment period of the student's ACG for the 
second academic year, a student's GPA for the first academic year under 
Sec. 691.15(b)(1)(iii)(C) is not yet available; or
    (ii) For a payment period for a National SMART Grant, a student's 
cumulative GPA through the prior payment period under Sec. 691.15(c)(3) 
for the student's enrollment in the eligible program through the prior 
payment period under Sec. 691.15(c)(3) is not yet available; and
    (2) The institution assumes liability for any overpayment as a 
result of the student failing to meet the required GPA to qualify for 
the disbursement.
    (e) For purposes of this section, a self-paced program is an 
educational program without terms that allows a student--
    (1) To complete courses without a defined schedule for completing 
the courses; or
    (2) At the student's discretion, to begin courses within a program 
either at any time or on specific dates set by the institution for the 
beginning of courses without a defined schedule for completing the 
program.

(Authority: 20 U.S.C. 1070a-1)

[71 FR 38004, July 3, 2006, as amended at 71 FR 64419, Nov. 1, 2006]