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[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Notices]
[Pages 12665-12668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04447]

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DEPARTMENT OF EDUCATION

Eligibility Designations and Applications for Waiving Eligibility 
Requirements; Programs Under Parts A and F of Title III and Programs 
Under Title V of the Higher Education Act of 1965, as Amended (HEA)

AGENCY: Office of Postsecondary Education, Department of Education 
(Department).

ACTION: Notice.

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SUMMARY: The Department announces the process for designation of 
eligible institutions and invites applications for waivers of 
eligibility requirements for fiscal year (FY) 2021, for the following 
programs: 1. Programs authorized under title III, part A of the HEA: 
Strengthening Institutions Program (Part A SIP), Alaska Native and 
Native Hawaiian-Serving Institutions (Part A ANNH), Predominantly Black 
Institutions (Part A PBI), Native American-Serving Nontribal 
Institutions (Part A NASNTI), and Asian American and Native American 
Pacific Islander-Serving Institutions (Part A AANAPISI). 2. Programs 
authorized under title III, part F of the HEA: Hispanic-Serving 
Institutions STEM and Articulation (Part F HSI STEM and Articulation), 
Predominantly Black Institutions (Part F PBI), Alaska Native and Native 
Hawaiian-Serving Institutions (Part F ANNH), Native American-Serving 
Nontribal Institutions (Part F NASNTI), and Asian American and Native 
American Pacific Islander-Serving Institutions (Part F AANAPISI). 3. 
Programs authorized under title V of the HEA: Developing Hispanic-
Serving Institutions (HSI) and Promoting Postbaccalaureate 
Opportunities for Hispanic Americans (PPOHA).

DATES: 
    Applications Available: March 4, 2021.
    Deadline for Transmittal of Applications: April 5, 2021.

FOR FURTHER INFORMATION CONTACT: Christopher Smith, Institutional 
Service, U.S. Department of Education, 400 Maryland Avenue SW, Room 
2B108, Washington, DC 20202. Telephone: (202) 453-7946 or (202) 262-
7141. Email: [email protected]; or Jason Cottrell, Institutional 
Service, U.S. Department of Education, 400 Maryland Avenue SW, Room 
2B127, Washington, DC 20202. Telephone: (202) 453-7530 or (202) 262-
1833. Email: [email protected].
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:

Full Text of Announcement

I. Funding Opportunity Description

    Purpose of Programs: The Part A SIP, Part A ANNH, Part A PBI, Part 
A NASNTI, and Part A AANAPISI programs are authorized under title III, 
part A of the HEA. The Part F HSI STEM and Articulation, Part F PBI, 
Part F ANNH, Part F NASNTI, and Part F AANAPISI programs are authorized 
under title III, part F of the HEA. The HSI and PPOHA programs are 
authorized under title V of the HEA. Please note that certain programs 
addressed in this notice have the same or similar names as other 
programs that are authorized under a different statutory authority. For 
this reason, we specify the statutory authority as part of the acronym 
for certain programs.
    Under the programs discussed above, institutions are eligible to 
apply for grants if they meet specific statutory and regulatory 
eligibility requirements. An institution of higher education that is 
designated as an eligible institution may also receive a waiver of 
certain non-Federal cost-sharing requirements for one year under the 
Federal Supplemental Educational Opportunity Grant (FSEOG) program 
authorized by title IV, part A of the HEA and the Federal Work-Study 
(FWS) program authorized by section 443 of the HEA. Qualified 
(eligible) institutions may receive the FSEOG and FWS waivers for one 
year even if they do not receive a grant under a title III or V grant 
program. An applicant that receives a grant from the Student Support 
Services (SSS) program that is authorized under section 402D of the 
HEA, 20 U.S.C. 1070a-14, may receive a waiver of the required non-
Federal cost share for institutions for the duration of the grant. An 
applicant that receives a grant from the Undergraduate International 
Studies and Foreign Language (UISFL) program that is authorized under 
section 604 of the HEA, 20 U.S.C. 1124, may receive a waiver or 
reduction of the required non-Federal cost share for institutions for 
the duration of the grant.
    Sections 312 and 502 of the HEA, 34 CFR 607.2-607.5, and 34 CFR 
606.2-606.5 include most of the basic eligibility requirements for 
grant programs authorized under titles III and V of the HEA. Sections 
312(b)(1)(B) and 502(a)(2)(A) of the HEA provide that, to be eligible 
for these programs, an institution of higher education's average 
``educational and general expenditures'' (E&G) per full-time equivalent 
(FTE) undergraduate student must be less than the average E&G 
expenditures per FTE undergraduate student of institutions that offer 
similar instruction in that year.
    The National Center for Education Statistics (NCES) calculates Core 
Expenses per FTE of institutions, a statistic like E&G per FTE. Both 
E&G per FTE and Core Expenses per FTE are based on regular operational 
expenditures of institutions (excluding auxiliary enterprises, 
independent operations, and hospital expenses). They differ only in 
that E&G per FTE is based on fall undergraduate enrollment, while Core 
Expenses per FTE is based on 12-month undergraduate enrollment for the 
academic year.
    To avoid inconsistency in the data submitted to, and produced by, 
the Department, for the purpose of sections 312(b)(1)(B) and 
502(a)(2)(A) of the HEA, E&G per FTE is calculated using the same 
methodology as Core Expenses per FTE. Accordingly, the Department will 
apply the NCES methodology for calculating Core Expenses per FTE. 
Institutions requesting an eligibility exemption determination must use 
the Core Expenses per FTE data reported to NCES' Integrated 
Postsecondary Education Data System (IPEDS) for the most currently 
available academic year, in this case academic year 2018-2019.
    Special Note: To qualify as an eligible institution under the grant 
programs listed in this notice, your institution must satisfy several 
criteria. For most of these programs, these criteria include those that 
relate to the enrollment of needy students and to the Core Expenses per 
FTE student count for a specified base year. The most recent

[[Page 12666]]

data available in IPEDS for Core Expenses per FTE are for base year 
2018-2019. To award FY 2021 grants in a timely manner, we will use 
these data to evaluate eligibility.
    Accordingly, each institution interested in either applying for a 
new grant under the title III or V programs addressed in this notice, 
or requesting a waiver of the non-Federal cost share, must be 
designated as an eligible institution in FY 2021. Under the HEA, any 
institution interested in applying for a grant under any of these 
programs must first be designated as an eligible institution. (34 CFR 
606.5 and 607.5).
    Note: Please be advised that the list of institutions of higher 
education identified in the allocation table as eligible to receive an 
award under section 314(a)(2) of the Coronavirus Response and Relief 
Supplemental Appropriations Act, 2021 (CRRSAA) only speaks to the 
eligibility of those institutions for the purposes of receiving funds 
under CRRSAA section 314(a)(2). The appearance of an institution on the 
section 314(a)(2) allocation table does not grant or otherwise indicate 
that the institution is currently eligible for funding under titles 
III, V, and VII of the HEA. An institution that seeks to meet the 
eligibility requirements for programs identified in this notice under 
titles III, V, and VII of the HEA must apply under the procedures 
contained in this notice.
    Eligible Applicants:
    The eligibility requirements for the programs authorized under part 
A of title III of the HEA are in sections 312 and 317-320 of the HEA 
(20 U.S.C. 1058, 1059d-1059g) and in 34 CFR 607.2 through 607.5. The 
regulations may be accessed at www.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.607&rgn=div5. The eligibility requirements for the programs authorized by part F 
of title III of the HEA are in section 371 of the HEA (20 U.S.C. 
1067q). There are currently no specific regulations for these programs.
    The eligibility requirements for the title V HSI program are in 
part A of title V of the HEA and in 34 CFR 606.2 through 34 CFR 606.5. 
The regulations may be accessed at www.ecfr.gov/cgi-bin/text-idx?SID=bc12bf5d685021e069cd1a15352b381a&mc=true&node=pt34.3.606&rgn=div5l.
    The requirements for the PPOHA program are in part B of title V of 
the HEA and in the notice of final requirements published in the 
Federal Register on July 27, 2010 (75 FR 44055), and in 34 CFR 606.2(a) 
and (b), and 606.3 through 606.5.
    The Department has instituted a process known as the Eligibility 
Matrix (EM), under which we will use information submitted by 
institutions to IPEDS to determine which institutions meet the basic 
eligibility requirements for the programs authorized by title III or V 
of the HEA listed above. We will use enrollment and fiscal data from 
the 2018-2019 year submitted by institutions to IPEDS to make 
eligibility determinations for FY 2021. Beginning February XX, 2021, an 
institution will be able to review the Department's decision on whether 
it is eligible for the grant programs authorized by title III or V of 
the HEA through this process by checking the institution's eligibility 
in the eligibility system linked through the Department's Institutional 
Service Eligibility website: http://www2.ed.gov/about/offices/list/ope/idues/eligibility.html.
    Please note that through this process, the Department does not 
certify, nor designate, an institution as a Historically Black College 
or University, Tribally Controlled College or University, Minority-
Serving Institution, or Hispanic-Serving Institution. The Department's 
determination that an institution is eligible is solely for the purpose 
of the institution's ability to apply for and receive grants under 
certain programs as discussed in this notice.
    The EM is part of the Department's eligibility data system. The EM 
is a read-only worksheet that lists all potentially eligible 
postsecondary institutions, as determined by the Department using the 
data described above. If the entry for your institution in the EM shows 
that your institution is eligible to apply for a grant for a particular 
program, and you plan to apply for a grant in that program, you will 
not need to apply for eligibility or for a waiver through the process 
described in this notice. Rather, you may print out the eligibility 
letter directly. However, if the EM does not show that your institution 
is eligible for a program in which you plan to apply for a grant, you 
must submit an application as discussed in this notice before the 
application deadline of April 5, 2021.
    To check your institution's eligibility in the EM, go to https://HEPIS.ed.gov, and log into the system using your email address and 
password. If you are not sure whether you have an account in the 
system, click the ``New User'' button. If you have an account, it will 
walk you through setup. Note that it may take up to five business days 
to verify user identity and to complete new account setup, so please 
allow yourself enough time to complete the application. If the Grant 
Eligibility Application (GEA) system is open, click the link on your 
dashboard to check your institution's eligibility status by clicking 
the ``View pre-Eligibility Information'' button. Your institution's 
eligibility information will display.
    If the EM does not show that your institution is eligible for a 
program, or if your institution does not appear in the eligibility 
system, or if you disagree with the eligibility determination reflected 
in the eligibility system, you can apply for a waiver or 
reconsideration through the process described in this notice. The 
application process is like previous years; you will choose the waiver 
option on the website at https://HEPIS.ed.gov/ and submit your 
institution's application.
    Enrollment of Needy Students: For programs under titles III and V 
(excluding the PBI programs), an institution is considered to have an 
enrollment of needy students if: (1) At least 50 percent of its degree-
seeking students received financial assistance under the Federal Pell 
Grant, FSEOG, FWS, or the Federal Perkins Loan programs; or (2) the 
percentage of its undergraduate degree-seeking students who were 
enrolled on at least a half-time basis and received Federal Pell Grants 
exceeded the median percentage of undergraduate degree students who 
were enrolled on at least a half-time basis and received Federal Pell 
Grants at comparable institutions that offer similar instruction.
    To qualify under criterion 2, an institution's Federal Pell Grant 
percentage for base year 2018-2019 must be more than the median for its 
category of comparable institutions provided in the 2018-2019 Average 
Pell Grant and Core Expenses per FTE Student Table in this notice. If 
your institution qualifies under the first criterion, under which at 
least 50 percent of its degree-seeking students received financial 
assistance under one of several Federal student aid programs (the 
Federal Pell Grant, FSEOG, FWS, or the Federal Perkins Loan programs), 
but not the second criterion, under which an institution's Federal Pell 
Grant percentage for base year 2018-2019 must be more than the average 
for its category of comparable institutions provided in the 2018-2019 
Average Pell Grant and Core Expenses per FTE Student Table in this 
notice, you must submit an application including the requested data, 
which is not available in IPEDS.
    For the definition of ``Enrollment of Needy Students,'' for 
purposes of the Part A PBI program, see section 318(b)(2) of the HEA, 
and for purposes

[[Page 12667]]

of the Part F PBI program, see section 371(c)(9) of the HEA.
    Core Expenses per FTE Student: For the Title III, Part A SIP; Part 
A ANNH; Part A PBI; Part A NASNTI; Part A AANAPISI; Title III, Part F 
HSI STEM and Articulation; Part F PBI; Part F ANNH; Part F NASNTI; Part 
F AANAPISI; Title V, Part A HSI; and Title V, Part B PPOHA programs, an 
institution should compare its base year 2018-2019 Core Expenses per 
FTE student to the average Core Expenses per FTE student for its 
category of comparable institutions in the base year 2018-2019 Average 
Pell Grant and Average Core Expenses per FTE Student Table in this 
notice. The institution meets this eligibility requirement under these 
programs if its Core Expenses for the 2018-2019 base year are less than 
the average for its category of comparable institutions.
    Core Expenses are defined as the total expenses for the essential 
education activities of the institution. Core Expenses for public 
institutions reporting under the Governmental Accounting Standards 
Board (GASB) requirements include expenses for instruction, research, 
public service, academic support, student services, institutional 
support, operation and maintenance of plant, depreciation, scholarships 
and fellowships, interest, and other operating and non-operating 
expenses. Core Expenses for institutions reporting under the Financial 
Accounting Standards Board (FASB) standards (primarily private, not-
for-profit, and for-profit) include expenses for instruction, research, 
public service, academic support, student services, institutional 
support, net grant aid to students, and other expenses. Core Expenses 
do not include Federal student aid for the purposes of eligibility. For 
both FASB and GASB institutions, Core Expenses do not include expenses 
for auxiliary enterprises (e.g., bookstores, dormitories), hospitals, 
and independent operations.
    The following table identifies the relevant average Federal Pell 
Grant percentages for the base year 2018-2019 and the relevant Core 
Expenses per FTE student for the base year 2018-2019 for the four 
categories of comparable institutions:

------------------------------------------------------------------------
                                             Base year       Base year
                                             2018-2019       2018-2019
           Type of institution              median pell    average core
                                               grant       expenses per
                                            percentage      FTE student
------------------------------------------------------------------------
Two-year Public Institutions............              33         $14,679
Two-year Non-profit Private Institutions              57          17,529
Four-year Public Institutions...........              35          32,882
Four-year Non-profit Private                          37          42,211
 Institutions...........................
------------------------------------------------------------------------

    Waiver Information: Institutions that do not meet the needy student 
enrollment requirement or the Core Expenses per FTE requirement may 
apply to the Secretary for a waiver of these requirements, as described 
in sections 392 and 522 of the HEA, and the implementing regulations at 
34 CFR 606.3(b), 606.4(c) and (d), 607.3(b), and 607.4(c) and (d).
    Institutions requesting a waiver of the needy student enrollment 
requirement or the Core Expenses per FTE requirement must include in 
their application detailed evidence supporting the waiver request, as 
described in the instructions for completing the application.
    The regulations governing the Secretary's authority to grant a 
waiver of the needy student requirement refers to ``low-income'' 
students or families, at 34 CFR 606.3(b)(2) and (3) and 607.3(b)(2) and 
(3). The regulations at 34 CFR 606.3(c) and 607.3(c) define ``low-
income'' as an amount that does not exceed 150 percent of the amount 
equal to the poverty level, as established by the U.S. Census Bureau.
    For the purposes of this waiver provision, the following table sets 
forth the low-income levels (at 150 percent) for various sizes of 
families:

                                          2019 Annual Low-Income Levels
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                                                                  Family  income
                                                                    for  the 48
                                                                    contiguous    Family  income  Family  income
                       Size of family unit                          states, DC,     for  Alaska     for  Hawaii
                                                                   and outlying
                                                                   jurisdictions
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1...............................................................         $18,735         $23,400         $21,570
2...............................................................          25,365          31,995          29,190
3...............................................................          31,695          39,990          36,810
4...............................................................          38,625          48,285          44,430
5...............................................................          45,255          56,580          52,050
6...............................................................          51,885          64,875          59,670
7...............................................................          58,515          73,170          67,290
8...............................................................          65,145          81,465          74,910
----------------------------------------------------------------------------------------------------------------

    Note: We use the 2019 annual low-income levels because those are 
the amounts that apply to the family income reported by students 
enrolled for the fall 2018 semester. For family units with more than 
eight members, add the following amount for each additional family 
member: $6,630 for the contiguous 48 States, the District of Columbia, 
and outlying jurisdictions; $8,295 for Alaska; and $7,620 for Hawaii.
    The figures shown under family income represent amounts equal to 
150 percent of the family income levels

[[Page 12668]]

established by the U.S. Census Bureau for determining poverty status. 
The poverty guidelines were published on February 1, 2019, in the 
Federal Register by the U.S. Department of Health and Human Services 
(84 FR 1167), with an effective date of January 11, 2019.
    Information about ``metropolitan statistical areas'' referenced in 
34 CFR 606.3(b)(4) and 607.3(b)(4) may be obtained at: www.census.gov/prod/2010pubs/10smadb/appendixc.pdf and www.census.gov/prod/2008pubs/07ccdb/appd.pdf.
    Electronic Submission of Waiver Applications:
    If your institution does not appear in the eligibility system as 
one that is eligible for the program under which you plan to apply for 
a grant, you must apply for a waiver of the eligibility requirements. 
To request a waiver, you must upload a narrative at: https://
HEPIS.ED.gov.
    Exception to the Electronic Submission Requirement: We discourage 
paper applications, but if electronic submission is not possible (e.g., 
you do not have access to the internet), you must provide a written 
statement that you intend to submit a paper application. Send this 
written statement no later than two weeks before the application 
deadline date (14 calendar days or, if the 14th calendar day before the 
application deadline date falls on a Federal holiday, the next business 
day following the Federal holiday).
    If you mail your written statement to the Department, it must be 
postmarked no later than two weeks before the application deadline 
date. Please send this statement to one of the persons listed in the 
FOR FURTHER INFORMATION CONTACT section of this notice.
    If you submit a paper application, you must mail your application, 
on or before the application deadline date, to the Department at the 
following address: U.S. Department of Education, Attention: Jason 
Cottrell, Ph.D., 400 Maryland Avenue SW, Room 2B127, Washington, DC 
20202.
    You must show proof of mailing consisting of one of the following:
    (1) A legibly dated U.S. Postal Service postmark.
    (2) A legible mail receipt with the date of mailing stamped by the 
U.S. Postal Service.
    (3) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    (4) Any other proof of mailing acceptable to the Secretary of the 
U.S. Department of Education.
    If you mail your application through the U.S. Postal Service, we do 
not accept either of the following as proof of mailing:
    (1) A private metered postmark.
    (2) A mail receipt that is not dated by the U.S. Postal Service.
    Note: The U.S. Postal Service does not uniformly provide a dated 
postmark. Before relying on this method, you should check with your 
local post office.
    We will not consider applications postmarked after the application 
deadline date.
    Applicable Regulations: (a) The Education Department General 
Administrative Regulations (EDGAR) in 34 CFR parts 75, 77, 79, 82, 84, 
86, 97, 98, and 99. (b) The Office of Management and Budget Guidelines 
to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) 
in 2 CFR 180, as adopted and amended as regulations of the Department 
in 2 CFR part 3485. (c) The Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards in 2 CFR part 
200, as adopted and amended as regulations of the Department in 2 CFR 
part 3474. (d) The regulations for certain title III programs in 34 CFR 
part 607, and for the HSI program in 34 CFR part 606. (e) The notice of 
final requirements for the PPOHA program published in the Federal 
Register on July 27, 2010 (75 FR 44055).
    Note: The regulations in 34 CFR part 79 apply to all applicants 
except federally recognized Indian Tribes.
    Note: The regulations in 34 CFR part 86 apply to institutions only.
    Note: There are no program-specific regulations for the Part A PBI, 
Part A NASNTI, and Part A AANAPISI programs or any of the title III, 
part F programs. Also, there have been amendments to the HEA since the 
Department last issued regulations for the programs established under 
titles III and V of the statute. Accordingly, we encourage each 
potential applicant to read the applicable sections of the HEA to fully 
understand the eligibility requirements for the program for which they 
are applying.

II. Other Information

    Accessible Format: On request to one of the program contact persons 
listed under FOR FURTHER INFORMATION CONTACT, individuals with 
disabilities can obtain this document and a copy of the application 
package in an accessible format. The Department will provide the 
requestor with an accessible format that may include Rich Text Format 
(RTF) or text format (txt), a thumb drive, an MP3 file, braille, large 
print, audiotape, or compact disc, or other accessible format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department published 
in the Federal Register, in text or Portable Document Format (PDF). To 
use PDF, you must have Adobe Acrobat Reader, which is available free at 
the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

Tiwanda Burse,
Deputy Assistant Secretary for Management & Planning, Office of 
Postsecondary Education. Delegated authority to perform functions and 
duties of the Assistant Secretary for the Office of Postsecondary 
Education.
[FR Doc. 2021-04447 Filed 3-3-21; 8:45 am]
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