[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR606.4]

[Page 234-235]
 
                           TITLE 34--EDUCATION
 
 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 606_DEVELOPING HISPANIC-SERVING INSTITUTIONS
PROGRAM--Table of Contents
 
                            Subpart A_General
 
Sec. 606.4  What are low educational and general expenditures?

    (a)(1) Except as provided in paragraph (b) of this section, for the
purpose of Sec. 606.2(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

[[Page 235]]

student in that year of comparable institutions that offer similar
instruction.
    (2) For the purpose of paragraph (a)(1) of this section, the
Secretary determines the average educational and general expenditure per
full-time equivalent undergraduate student for institutions with
graduate students that do not differentiate between graduate and
undergraduate educational and general 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
    (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. 1101a and 1103a)