34 C.F.R. Subpart G—Administration of Grant Payments
Title 34 - Education
This subpart deals with program administration by an eligible institution. (Authority: 20 U.S.C. 1070a–1)
Title 34: Education
PART 691—ACADEMIC COMPETITIVENESS GRANT (ACG) AND NATIONAL SCIENCE AND MATHEMATICS ACCESS TO RETAIN TALENT GRANT (NATIONAL SMART GRANT) PROGRAMS
Subpart G—Administration of Grant Payments
§ 691.71 Scope.
§§ 691.72-691.74 [Reserved]
§ 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 §691.15;
(2) Is enrolled as an undergraduate student in an eligible program;
(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 §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 §691.15(c)(3) or is no longer pursuing a required major under §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 §691.15(b)(1)(iii)(C), a National SMART Grant under §691.15(c)(3), or, in the case of a National SMART Grant is no longer pursuing a required major under §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 §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 §691.15(c)(3) for the student's enrollment in the eligible program through the prior payment period under §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)
§ 691.76 Frequency of payment.
(a) In each payment period, an institution may pay a student at such times and in such installments as it determines will best meet the student's needs.
(b) The institution may pay funds in one lump sum for all the prior payment periods for which the student was eligible under §691.15 within the award year. The student must have completed the prior payment period as a full-time student.
(Authority: 20 U.S.C. 1070a–1)
§ 691.77 [Reserved]
§ 691.78 Method of disbursement—by check or credit to a student's account.
(a) An institution shall disburse funds to a student or the student's account in accordance with the provisions in 34 CFR 668.164.
(b) The institution shall return to the ACG or National SMART Grant account any funds paid to a student who, before the first day of classes—
(1) Officially or unofficially withdraws; or
(2) Is expelled.
(c)(1) An institution that intends to pay a student directly must notify the student in accordance with 34 CFR 668.165(a).
(2) If a student does not pick up the check on time, the institution shall still pay the student if he or she requests payment within 20 days after the last date that his or her enrollment ends in that award year.
(3) If the student has not picked up his or her payment at the end of the 20-day period, the institution may credit the student's account only for any outstanding charges for tuition and fees and room and board for the award year incurred by the student while he or she was eligible.
(4) A student forfeits the right to receive the payment if he or she does not pick up a payment by the end of the 20-day period.
(5) Notwithstanding paragraph (c)(4) of this section, the institution may, if it chooses, pay a student who did not pick up his or her payment, through the next payment period.
(6) An institution shall make a late disbursement to an ineligible student in accordance with the provisions in 34 CFR 668.164(g).
(Authority: 20 U.S.C. 1070a–1)
§ 691.79 Liability for and recovery of grant overpayments.
(a)(1) Except as provided in paragraphs (a)(2) and (a)(3) of this section, a student is liable for any grant overpayment made to him or her under this part.
(2) The institution is liable for a grant overpayment if the overpayment occurred because the institution failed to follow the procedures set forth in this part or 34 CFR part 668. The institution must restore an amount equal to the overpayment to its ACG or National SMART Grant account, as applicable.
(3) A student is not liable for, and the institution is not required to attempt recovery of or refer to the Secretary, a grant overpayment under this part if the amount of the overpayment is less than $25 and is not a remaining balance.
(b)(1) Except as provided in paragraph (a)(3) of this section, if an institution makes an overpayment under this part for which it is not liable, it must promptly send a written notice to the student requesting repayment of the overpayment amount. The notice must state that failure to make that repayment, or to make arrangements satisfactory to the holder of the overpayment debt to repay the overpayment, makes the student ineligible for further title IV, HEA program funds until final resolution of the overpayment.
(2) If a student objects to the institution's overpayment determination on the grounds that it is erroneous, the institution must consider any information provided by the student and determine whether the objection is warranted.
(c) Except as provided in paragraph (a)(3) of this section, if the student fails to repay an overpayment under this part or make arrangements satisfactory to the holder of the overpayment debt to repay the overpayment, after the institution has taken the action required by paragraph (b) of this section, the institution must refer the overpayment to the Secretary for collection purposes in accordance with procedures required by the Secretary. After referring the overpayment to the Secretary under this section, the institution need make no further efforts to recover the overpayment.
(Authority: 20 U.S.C. 1070a–1)
§ 691.80 Redetermination of eligibility for a grant award.
(a) Change in receipt of Federal Pell Grant. If, after the beginning of a payment period, a student otherwise eligible for an ACG or a National SMART Grant begins or ceases to receive a Federal Pell Grant for that payment period, the institution must redetermine the student's eligibility for an ACG or a National SMART Grant for that payment period.
(b) Change in enrollment status. (1) If the student's enrollment status changes from one payment period to another within the same award year, the institution shall determine whether the student qualifies for an ACG or a National SMART Grant for the new payment period.
(2)(i) If the student's projected enrollment status changes during a payment period after the student has begun attendance in all of his or her classes for that payment period, the institution may (but is not required to) establish a policy under which the institution may redetermine eligibility for the student's award for the payment period. If such a policy is established, it must apply to all students and be the same as the policy established for the Federal Pell Grant Program.
(ii) If a student's projected enrollment status changes to less-than-full-time during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall determine that the student is ineligible for a grant under this part for that payment period.
(Authority: 20 U.S.C. 1070a–1)
§ 691.81 Fiscal control and fund accounting procedures.
(a) An institution shall follow provisions for maintaining general fiscal records in this part and in 34 CFR 668.24(b).
(b) An institution shall maintain funds received under this part in accordance with the requirements in 34 CFR 668.164.
(Authority: 20 U.S.C. 1070a–1)
§ 691.82 Maintenance and retention of records.
(a) An institution shall follow the record retention and examination provisions in this part and in 34 CFR 668.24.
(b) For any disputed expenditures in any award year for which the institution cannot provide records, the Secretary determines the final authorized level of expenditures.
(Authority: 20 U.S.C. 1070a–1, 1232f)
§ 691.83 Submission of reports.
(a)(1) An institution may receive either a payment from the Secretary for an award to an ACG or a National SMART Grant recipient, or a corresponding reduction in the amount of Federal funds received in advance for which it is accountable, if—
(i) The institution submits to the Secretary the student's Payment Data for that award year in the manner and form prescribed in paragraph (a)(2) of this section by September 30 following the end of the award year in which the grant is made, or, if September 30 falls on a weekend, on the first weekday following September 30; and
(ii) The Secretary accepts the student's Payment Data.
(2) The Secretary accepts a student's Payment Data that is submitted in accordance with procedures established through publication in the
(3) An institution that does not comply with the requirements of this paragraph may receive a payment or reduction in accountability only as provided in paragraph (d) of this section.
(b)(1) An institution shall report to the Secretary any change in the amount of a grant for which a student qualifies including any related Payment Data changes by submitting to the Secretary the student's Payment Data that discloses the basis and result of the change in award for each student. The institution shall submit the student's Payment Data reporting any change to the Secretary by the reporting deadlines published by the Secretary in the
(2) An institution shall submit, in accordance with deadline dates established by the Secretary, through publication in the
(3) An institution that timely submits, and has accepted by the Secretary, the Payment Data for a student in accordance with this section shall report a reduction in the amount of an award that the student received when it determines that an overpayment has occurred, unless that overpayment is one for which the institution is not liable under §691.79(a).
(c) In accordance with 34 CFR 668.84, the Secretary may impose a fine on the institution if the institution fails to comply with the requirements specified in paragraphs (a) or (b) of this section.
(d)(1) Notwithstanding paragraph (a) or (b) of this section, if an institution demonstrates to the satisfaction of the Secretary that the institution has provided ACGs or National SMART Grants in accordance with this part but has not received credit or payment for those grants, the institution may receive payment or a reduction in accountability for those grants in accordance with paragraphs (d)(4) and either (d)(2) or (d)(3) of this section.
(2) The institution must demonstrate that it qualifies for a credit or payment by means of a finding contained in an audit report of an award year that was the first audit of that award year and timely submitted to the Secretary under 34 CFR 668.23(a).
(3) An institution that timely submits the Payment Data for a student in accordance with paragraph (a) of this section but does not timely submit to the Secretary, or have accepted by the Secretary, the Payment Data necessary to document the full amount of the award to which the student is entitled, may receive a payment or reduction in accountability in the full amount of that award, if—
(i) A program review demonstrates to the satisfaction of the Secretary that the student was eligible to receive an amount greater than that reported in the student's Payment Data timely submitted to, and accepted by the Secretary; and
(ii) The institution seeks an adjustment to reflect an underpayment for that award that is at least $100.
(4) In determining whether the institution qualifies for a payment or reduction in accountability, the Secretary takes into account any liabilities of the institution arising from that audit or program review or any other source. The Secretary collects those liabilities by offset in accordance with 34 CFR part 30.
(Authority: 20 U.S.C. 1070a–1, 1094, 1226a–1)
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