`[Federal Register Volume 62, Number 33 (Wednesday, February 19, 1997)]
[Proposed Rules]
[Pages 7395-7398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4000]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 40

RIN 1076-AA10


Grant Program for Higher Education

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Proposed rule.

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SUMMARY: The Bureau of Indian Affairs (BIA) is proposing to amend its 
regulations on Higher Education Grant Programs to improve the clarity 
of the regulations and understanding of the public as mandated by 
Executive Order 12866.

DATES: Comments must be received on or before May 20, 1997.

ADDRESSES: Mail comments to Joann S. Morris, Director, Office of Indian 
Education Programs, Bureau of Indian Affairs, Department of the 
Interior, 1849 C St. NW., Mail Stop 3512-MIB, Washington, DC 20240; or, 
hand deliver them to Room 3512 at the above address. Comments will be 
available for inspection at this address from 9 a.m. to 4 p.m., Monday 
through Friday beginning approximately March 5, 1997.


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FOR FURTHER INFORMATION CONTACT: Garry R. Martin, Office of Indian 
Education Programs, Bureau of Indian Affairs at telephone (202) 219-
1128.

SUPPLEMENTARY INFORMATION: The authority to issue rules and regulations 
is vested in the Secretary of the Interior by 5 U.S.C. 301 and sections 
463 and 465 of the Revised Statutes, 25 U.S.C. 2 and 9.
    Publication of the proposed rule by the Department of the Interior 
(Department) provides the public an opportunity to participate in the 
rulemaking process. Interested persons may submit written comments 
regarding the proposed rule to the location identified in the ADDRESSES 
section of this document.

Executive Order 12778

    The Department has certified to the Office of Management and Budget 
(OMB) that the proposed rule meets the applicable standards provided in 
sections 2(a) and 2(b)(2) of Executive Order 12778.

Executive Order 12866

    This proposed rule is not a significant regulatory action under 
Executive Order 12866.

Regulatory Flexibility Act

    This proposed rule will not have a significant economic impact on a 
substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.).

Executive Order 12630

    The Department has determined that this proposed rule does not have 
``significant'' takings implications. The proposed rule does not 
pertain to taking of private property interests, nor does it impact 
private property.

Executive Order 12612

    The Department has determined that this proposed rule does not have 
significant federalism effects because it pertains solely to Federal-
tribal relations and will not interfere with the roles, rights and 
responsibilities of states.

NEPA Statement

    The Department has determined that this proposed rule does not 
constitute a major Federal action significantly affecting the quality 
of the human environment and that no detailed statement is required 
pursuant to the National Environmental Policy Act of 1969.

Unfunded Mandates Act of 1995

    This proposed rule imposes no unfunded mandates on any governmental 
or private entity and is in compliance with the provisions of the 
Unfunded Mandates Act of 1995.

Paperwork Reduction Act of 1995

    As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)), the Department of the Interior has submitted a copy of these 
sections to the Office of Management and Budget (OMB) for its review.
    All information is to be collected annually from each applicant. 
The annual reporting and record keeping burden for this collection of 
information is estimated to average 4 hours for each response for 22 
respondents, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information. The total 
annual reporting and record keeping burden for this collection is 
estimated to be 76 hours.
    Organizations and individuals desiring to submit comments on the 
information collection requirement should direct them to the Office of 
Information and Regulatory Affairs, OMB, Room 10202, New Executive 
Office Building, Washington, DC 20503; Attention: Interior Desk 
Officer.
    The Department considers comments by the public on this proposed 
collection of information in:
    Evaluating whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
    Evaluating the accuracy of the Department's estimate of the burden 
of the proposed collection of information, including the validity of 
the methodology and assumptions used;
    Enhancing the quality, usefulness, and clarity of the information 
to be collected; and
    Minimizing the burden of the collection of information on those who 
are to respond; including through the use of appropriate automated, 
electronic, mechanical, or other collection techniques or other forms 
of information technology.
    OMB is required to make a decision concerning the collection of 
information contained in these proposed regulations between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment to the OMB is best assured of having full effect 
if OMB receives it within 30 days of publication. This does not affect 
the deadline for the public to comment to the Bureau of Indian Affairs 
on the proposed regulations.

    Drafting Information: The primary author of this document is 
Garry R. Martin, Office of Indian Education Programs, Bureau of 
Indian Affairs, Department of the Interior.

List of Subjects in 25 CFR Part 40

    Indians--education, Indians--educational assistance.
    For the reasons given in the preamble, Part 40 of Title 25, chapter 
I of the Code of Federal Regulations is proposed to be revised as set 
forth below.

PART 40--HIGHER EDUCATION GRANT PROGRAM

Sec.

40.1  What special terms apply?
40.2  What is the purpose of this part?
40.3  Who is eligible for a higher education grant?
40.4  How do I apply for a higher education grant?
40.5  How is my application reviewed?
40.6  How will I be notified if I am awarded a grant?
40.7  How will I receive the grant?
40.8  How long does my financial aid last?
40.9  What happens if I withdraw from school?
40.10  How do I appeal a grant decision?
40.11  What records are kept for the grant program?
40.12  How does a tribe estimate allowable administrative costs?
40.13  May a tribe prioritize its higher education grant program?
40.14  Are there requirements for information collection?

    Authority: 25 U.S.C. 2, 9, and 13; Reorganization Plan No. 3 of 
1950 (65 Stat. 1262)


Sec. 40.1  What special terms apply?

    Academic year means a period of time in which a full-time student 
is expected to complete the equivalent of at least two semesters, two 
trimesters, or three quarters at a institution that measures academic 
process in credit hours.
    Accreditation means the certification of an institution of higher 
education by a sanctioned national or regional accrediting agency or 
association recognized by the Secretary of Education.
    BIA means the Bureau of Indian Affairs.
    Campus-based aid means the Federal financial aid programs (i.e., 
Supplemental Educational Opportunity Grants (SEOG), College Work-Study 
(CWS), and Perkins Loan) administered by the financial aid office.
    Certificate of Agreement means a written agreement between a grant 
recipient and the higher education program describing how a recipient 
pays back grants when the recipient does not meet the requirements in 
25 CFR 40.8 and 40.9.
    Continuing student means a grant recipient who is currently 
enrolled in an

[[Page 7397]]

eligible institution and is maintaining satisfactory progress in his or 
her course of study according to the institution's standards of 
satisfactory progress.
    Director means the Director, Office of Indian Education Programs, 
Bureau of Indian Affairs.
    Education Line Officer means a Bureau of Indian Affairs official 
designated as an Agency Superintendent for Education or an Education 
Program Administrator.
    Eligible institution means an institution of higher education that 
is accredited by a national or regional accrediting agency or is a 
candidate for accreditation, or is a tribally controlled community 
college.
    Financial aid office means the office of an institution of higher 
education that has responsibility for institutionally administered 
financial aid.
    Financial aid package means the institution's documents that 
identify the amounts and types of financial aid awarded by the 
institution and the amount of unmet need.
    Full time student means an enrolled student who is carrying a full 
time academic work load (other than correspondence course) as 
determined by the eligible institution.
    Higher education grant package means documents required to 
identify, eligibility for assistance obtainable through federally 
recognized tribal offices, or BIA offices. This package is available 
from tribal Higher Education Grant Programs local Office of Indian 
Education Programs.
    Higher Education Office means a Bureau Education Line Office, 
tribal or tribal organization administering funds appropriated to the 
Bureau for higher education grants to eligible students.
    Indian means a person who is a member of or is at least one-quarter 
degree Indian blood descendant of a member of an Indian tribe that is 
eligible for the special programs and services provided by the United 
States through the Bureau of Indian Affairs to Indians because of their 
status as Indians.
    Indian tribe means any Indian Tribe, Band, Nation, Rancheria, 
Pueblo, Colony or Community, including any Alaska Native village, that 
is recognized by the United States Government, through the Secretary of 
the Interior, for special programs and services provided by the 
Secretary to Indians because of their status as Indians.
    Mitigating circumstances means a circumstance, such as, a student's 
medical diagnosed condition impairing the ability to continue a course 
of study documented by his or her physician, or any other undue 
hardship that significantly hinders a student's academic progress.
    Near reservation means those areas or communities next to 
reservations that are designated by the Assistant Secretary--Indian 
Affairs upon recommendations of the local BIA Superintendent with input 
of the affected tribal governing body.
    Program plan means an individualized course of study in which the 
student, in conjunction with the degree granting institution of higher 
education, outlines the required courses for the desired degree.
    Unmet need means the difference between the student's cost of 
education and the resources available to defray those costs.
    You means the grant applicant or potential applicant.


Sec. 40.2  What is the purpose of this part?

    The BIA Grant Program for Higher Education, administered under the 
authority of the Snyder Act of November 2, 1921 (25 U.S.C. 13), 
provides financial assistance to eligible Indian students who have 
unmet financial needs as determined by the eligible institution's 
Financial Aid Office. All grants made under this part shall be subject 
to availability of appropriations.


Sec. 40.3  Who is eligible for a higher education grant?

    To be eligible for a higher education grant:
    (a) You must be a member of a federally recognized Indian tribe 
eligible for the programs provided to Indians by the BIA, or be a one-
quarter degree blood descendant of such a member;
    (b) You must be admitted to an institution of higher education that 
is accredited by national or regional accrediting agency, is a 
candidate for accreditation, or is an eligible institution;
    (c) You must apply for all available campus-based aid by an 
established due date; and
    (d) You must have unmet need (the difference between the cost of 
your education and your resources for defraying that cost) as 
determined by the eligible institution's financial aid office.


Sec. 40.4  How do I apply for a higher education grant?

    (a) You must have the institution's financial aid office prepare 
and certify an application package for financial aid. The package must 
include:
    (1) A letter of acceptance from your institution (required only if 
you are a new, transfer, or a previously suspended student);
    (2) A completed BIA form for applying for a higher education grant;
    (3) A Certificate of Indian Blood (CIB) from your tribe or from the 
BIA certifying that you are a member of a tribe or have documentation 
to support a claim to Indian descent by blood quantum;
    (4) A high school transcript or General Education Development (GED) 
high school equivalency certificate;
    (5) Grades, transcripts or progress reports from previous term/year 
of attendance (continuing students); and
    (6) A statement agreeing to repay the grant if you fail to enroll, 
withdraw or are expelled, unless there are mitigating circumstances.
    (b) This package must be submitted to the BIA or tribal 
organization administering the program for your tribe by the due date 
set by that organization. If your application arrives after the due 
date, your application will be considered only if funds remain 
available.
    (c) You must submit a separate application for a summer school 
program.


Sec. 40.5  How is my application reviewed?

    The BIA or tribal organization administering the program for your 
tribe reviews your application. The BIA or tribal organization will:
    (a) Determine your unmet need, using information from your 
institution's financial aid office;
    (b) Approve your eligibility for a grant according to your tribe's 
priority plan; and
    (c) Within availability of funds, fund no more than your unmet 
need.


Sec. 40.6  How will I be notified if I am awarded a grant?

    The BIA or tribal organization administering the program for your 
tribe will tell you and your institution's financial aid office in 
writing of its approval or denial.


Sec. 40.7  How will I receive the grant?

    (a) The BIA or tribal organization administering the program will 
issue your grant to your institution's financial aid office.
    (b) Your institution's financial aid office will distribute the 
grant money according to its policy on disbursement.


Sec. 40.8  How long does my financial aid last?

    (a) If your undergraduate degree or Certificate program requires 
four or fewer academic years, you may take extra years to complete the 
program, but you must finish a degree in no more than five academic 
years.

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    (b) If your undergraduate degree or certificate program normally 
requires more than four academic years, you may take extra years to 
complete the program, but you must finish a degree in six academic 
years.
    (c) The BIA or tribal organization administering the program may 
waive the time limits for hardship caused by special circumstances.
    (d) To remain eligible for continued funding, you must submit a 
grade report or transcript for each term to the BIA or tribal 
organization administering the program.


Sec. 40.9  What happens if I withdraw from school?

    (a) You will be required to pay back any portion of the grant you 
receive if you, without mitigating circumstances, fail to enroll, 
withdraw or are expelled before the completion of a term.
    (b) Within ten days of your failure to enroll or withdrawal or 
expulsion you will be required to submit to the BIA or tribal 
organization administering the program:
    (1) The date of your failure to enroll, withdrawal or expulsion;
    (2) A written statement with supporting documentation stating your 
reasons for a failure to enroll, withdrawal or expulsion including 
mitigating circumstances; and
    (3) A copy of your request to the institution that all remaining 
grant funds be returned to the BIA.
    (c) The Bureau of Indian Affairs or tribal organization 
administering the program will notify you in writing of arrangements to 
pay the balance of funds based upon a Certificate of Agreement between 
you and the organization awarding your grant or grant you a waiver from 
repayment based upon mitigating circumstances.


Sec. 40.10  How do I appeal a grant decision?

    You may appeal the decisions of any BIA official by following the 
procedures in 25 CFR part 2, Appeals from Administrative Actions.


Sec. 40.11  What records are kept for the grant program?

    (a) The Higher Education Office will maintain your files, a ledger 
of all costs, and related records necessary to identify all 
transactions involving expenditure of funds made available to you under 
this program. These records:

(1) Identify your award and status;
(2) Demonstrate your eligibility;
(3) Document the amount of your award and the manner in which your 
unmet need was calculated and met;
(4) Identify whether your enrollment was terminated;
(5) Identify collections based upon Certificates of Agreement; and
(6) Identify waivers from repayment.

    (b) By November 1 of each year, the Education Line Officer will 
submit a Higher Education Grant Program Annual Report for the preceding 
academic year to the Director of the Office of Indian Education 
Programs.


Sec. 40.12  How does a tribe estimate allowable administrative costs?

    Tribes and tribal organizations that do not have a negotiated an 
indirect cost rate with the Federal Government may use no more than 15 
percent of available program funds to pay for indirect program costs 
chargeable to the program.


Sec. 40.13  May a tribe prioritize its higher education grant program?

    Yes.
    (a) A tribe operating a higher education program may set program 
priorities for categories of applicants. These priorities in order to 
be given effect must be set out in the application materials provided 
to grant applicants, and attached to the tribe's contract or annual 
funding agreement. This tribal program priority plan may include a 
listing of priorities, the reasons and supporting documentation.
    (b) If a tribe desires to set a higher academic standard by 
increasing the minimum grade point average, designate academic hours 
needed in order to be classified as a full time student, set priorities 
to first serve students residing near or within the exterior boundaries 
of the reservation or on trust or restricted lands, the tribe may do 
so.


Sec. 40.14  Are there requirements for information collection?

    The information collection requirement contained in this part has 
been approved by the Office of Management and Budget under the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d), and assigned 
clearance number 1076-0106.

    Dated: January 28, 1997.
Ada E. Deer,
Assistant Secretary--Indian Affairs.
[FR Doc. 97-4000 Filed 2-18-97; 8:45 am]
BILLING CODE 4310-02-P`