34 C.F.R. Subpart A—General
Title 34 - Education
The purpose of the Developing Hispanic-Serving Institutions Program is to provide grants to eligible institutions of higher education to— (a) Expand educational opportunities for, and improve the academic attainment of, Hispanic students; and (b) Expand and enhance the academic offerings, program quality, and institutional stability of colleges and universities that are educating the majority of Hispanic college students and helping large numbers of Hispanic students and other low-income individuals complete postsecondary degrees. (Authority: 20 U.S.C. 1101) (a) An institution of higher education is eligible to receive a grant under this part if— (1) At the time of application, it has an enrollment of undergraduate full-time equivalent students that is at least 25 percent Hispanic students; (2) It provides assurances that not less than 50 percent of its Hispanic students are low-income individuals; (3) It has an enrollment of needy students as described in §606.3(a), unless the Secretary waives this requirement under §606.3(b); (4) It has low average educational and general expenditures per full-time equivalent undergraduate student as described in §606.4(a), unless the Secretary waives this requirement under §606.4(c); (5) It is legally authorized by the State in which it is located to be a junior college or to provide an educational program for which it awards a bachelor's degree; and (6) It is accredited or preaccredited by a nationally recognized accrediting agency or association that the Secretary has determined to be a reliable authority as to the quality of education or training offered. (b) A branch campus of a Hispanic-Serving institution is eligible to receive a grant under this part if— (1) The institution as a whole meets the requirements of paragraphs (a)(3) through (a)(6) of this section; and (2) The branch campus satisfies the requirements of paragraphs (a)(1) through (a)(4) of this section. (c)(1) An institution that receives a grant under the Strengthening Institutions Program (34 CFR part 607) or the Strengthening Historically Black Colleges and Universities Program (34 CFR part 608) for a particular fiscal year is not eligible to receive a grant under this part for that same fiscal year, and may not relinquish its grant under those programs to secure a grant under this part. (2) A Hispanic-Serving institution under this part may not concurrently receive grant funds under the Strengthening Institutions Program, Strengthening Historically Black Colleges and Universities Program, or Strengthening Historically Black Graduate Institutions Program. (Authority: 20 U.S.C. 1101a and 1101d) [64 FR 70147, Dec. 15, 1999, as amended at 66 FR 1263, Jan. 8, 2001] (a) Except as provided in paragraph (b) of this section, for the purpose of §606.2(a)(3), an applicant institution has an enrollment of needy students if in the base year— (1) At least 50 percent of its degree students received student financial assistance under one or more of the following programs: Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Work-Study, and Federal Perkins Loan; or (2) The percentage of its undergraduate degree 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. (b) The Secretary may waive the requirement contained in paragraph (a) of this section if the institution demonstrates that— (1) The State provides more than 30 percent of the institution's budget and the institution charges not more than $99.00 for tuition and fees for an academic year; (2) At least 30 percent of the students served by the institution in the base year were students from low-income families; (3) The institution substantially increases the higher education opportunities for low-income students who are also educationally disadvantaged, underrepresented in postsecondary education, or minority students; (4) The institution substantially increases the higher education opportunities for individuals who reside in an area that is not included in a “metropolitan statistical area” as defined by the Office of Management and Budget and who are unserved by other postsecondary institutions; or (5) The institution will, if granted the waiver, substantially increase the higher education opportunities for Hispanic Americans. (c) For the purpose of paragraph (b) of this section, the Secretary considers “low-income” to be an amount which does not exceed 150 percent of the amount equal to the poverty level as established by the United States Bureau of the Census. (d) Each year, the Secretary notifies prospective applicants of the low-income figures through a notice published in the (Authority: 20 U.S.C. 1101a and 1103a) (a)(1) Except as provided in paragraph (b) of this section, for the purpose of §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 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 (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) (a) An institution applies to the Secretary to be designated an eligible institution under this part by first submitting an application to the Secretary in the form, manner, and time established by the Secretary. The application must contain— (1) The information necessary for the Secretary to determine whether the institution satisfies the requirements of §§606.2, 606.3(a), and 606.4(a); (2) Any waiver request under §§606.3(b) and 606.4(c); and (3) Information or explanations justifying any requested waiver. (b) An institution that wishes to receive a grant under this part must submit, as part of its application for that grant, an assurance that when it submits its application— (1) Its enrollment of undergraduate full-time equivalent students is at least 25 percent Hispanic students; and (2) Not less than 50 percent of its Hispanic students are low-income individuals. (Authority: 20 U.S.C. 1101a and 1103) The following regulations apply to the Developing Hispanic-Serving Institutions Program: (a) The Education Department General Administrative Regulations (EDGAR) as follows: (1) 34 CFR part 74 (Administration of Grants to Institutions of Higher Education, Hospitals, and Nonprofit Organizations). (2) 34 CFR part 75 (Direct Grant Programs), except 34 CFR 75.128(a)(2) and 75.129(a) in the case of applications for cooperative arrangements. (3) 34 CFR part 77 (Definitions that Apply to Department Regulations). (4) 34 CFR part 79 (Intergovernmental Review of Department of Education Programs and Activities). (5) 34 CFR part 82 (New Restrictions on Lobbying). (6) 34 CFR part 85 (Governmentwide Debarment and Suspension (Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace (Grants)). (7) 34 CFR part 86 (Drug-Free Schools and Campuses). (b) The regulations in this part 606. (Authority: 20 U.S.C. 1101 et seq.) (a) Definitions in EDGAR. The terms used in this part are defined in 34 CFR 77.1:
EDGAR Fiscal year Grant Grantee Grant period Nonprofit Private Project period Public Secretary State (b) The following definitions also apply to this part: Accredited means the status of public recognition which a nationally recognized accrediting agency or association grants to an institution which meets certain established qualifications and educational standards. Activity means an action that is incorporated into an implementation plan designed to meet one or more objectives. An activity is a part of a project and has its own budget that is approved to carry out the objectives of that subpart. Base year means the second fiscal year preceding the fiscal year for which an institution seeks a grant under this part. Branch campus means a unit of a college or university that is geographically apart from the main campus of the college or university and independent of that main campus. The Secretary considers a unit of a college or university to be independent of the main campus if the unit— (1) Is permanent in nature; (2) Offers courses for credit and programs leading to an associate or bachelor's degree; and (3) Is autonomous to the extent that it has— (i) Its own faculty and administrative or supervisory organization; and (ii) Its own budgetary and hiring authority. Comparable institutions that offer similar instruction means institutions that are being compared with an applicant institution and that fall within one of the following four categories— (1) Public junior or community colleges; (2) Private nonprofit junior or community colleges; (3) Public institutions that offer an educational program for which they offer a bachelor's degree; or (4) Private nonprofit institutions that offer an educational program for which they offer a bachelor's degree. Cooperative arrangement means an arrangement to carry out allowable grant activities between an institution eligible to receive a grant under this part and another eligible or ineligible institution of higher education, under which the resources of the cooperating institutions are combined and shared to better achieve the purposes of this part and avoid costly duplication of effort. Degree student means a student who enrolls at an institution for the purpose of obtaining the degree, certificate, or other recognized educational credential offered by that institution. Developmental program and services means new or improved programs and services, beyond those regularly budgeted, specifically designed to improve the self sufficiency of the school. Educational and general expenditures means the total amount expended by an institution of higher education for instruction, research, public service, academic support (including library expenditures), student services, institutional support, scholarships and fellowships, operation and maintenance expenditures for the physical plant, and any mandatory transfers which the institution is required to pay by law. Educationally disadvantaged means a college student who requires special services and assistance to enable them to succeed in higher education. The phrase includes, but is not limited to, students who come from— (1) Economically disadvantaged families; (2) Limited English proficiency families; (3) Migrant worker families; or (4) Families in which one or both of their parents have dropped out of secondary school. Federal Pell Grant Program means the grant program authorized by title IV-A–1 of the HEA. Federal Perkins Loan Program, formerly called the National Direct Student Loan Program, means the loan program authorized by title IV-E of the HEA. Federal Supplemental Education Opportunity Grant Program means the grant program authorized by title IV-A-3 of the HEA. Federal Work-Study Program means the part-time employment program authorized under title IV-C of the HEA. Full-time equivalent students means the sum of the number of students enrolled full-time at an institution, plus the full-time equivalent of the number of students enrolled part time (determined on the basis of the quotient of the sum of the credit hours of all part-time students divided by 12) at such institution. HEA means the Higher Education Act of 1965, as amended. Hispanic student means a person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race. Institution of higher education means an educational institution defined in section 101 of the HEA. Junior or community college means an institution of higher education— (1) That admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located and who have the ability to benefit from the training offered by the institution; (2) That does not provide an educational program for which it awards a bachelor's degree (or an equivalent degree); and (3) That— (i) Provides an educational program of not less than 2 years that is acceptable for full credit toward such a degree; or (ii) Offers a 2-year program in engineering, mathematics, or the physical or biological sciences, designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engineering, scientific, or mathematical principles of knowledge. Low-income individual means an individual from a family whose taxable income for the preceding year did not exceed 150 percent of an amount equal to the poverty level determined by using criteria of poverty established by the Bureau of the Census. Minority student means a student who is an Alaska Native, American Indian, Asian-American, Black (African-American), Hispanic American, Native Hawaiian, or Pacific Islander. Nationally recognized accrediting agency or association means an accrediting agency or association that the Secretary has recognized to accredit or preaccredit a particular category of institution in accordance with the provisions contained in 34 CFR part 603. The Secretary periodically publishes a list of those nationally recognized accrediting agencies and associations in the Operational programs and services means the regular, ongoing budgeted programs and services at an institution. Preaccredited means a status that a nationally recognized accrediting agency or association, recognized by the Secretary to grant that status, has accorded an unaccredited institution that is progressing toward accreditation within a reasonable period of time. Project means all the funded activities under a grant. Self-sufficiency means the point at which an institution is able to survive without continued funding under the Developing Hispanic-Serving Institutions Program. Underrepresented means proportionate representation as measured by degree recipients, that is less than the proportionate representation in the general population— (1) As indicated by— (i) The most current edition of the Department's Digest of Educational Statistics; (ii) The National Research Council's Doctorate Recipients from United States Universities; or (iii) Other standard statistical references, as announced annually in the (2) As documented by national survey data submitted to and accepted by the Secretary on a case-by-case basis. (Authority: 20 U.S.C. 1101 et seq.; OMB Directive No. 15) (a) A comprehensive development plan is an institution's strategy for achieving growth and self-sufficiency by strengthening its— (1) Academic programs; (2) Institutional management; and (3) Fiscal stability. (b) The comprehensive development plan must include the following: (1) An analysis of the strengths, weaknesses, and significant problems of the institution's academic programs, institutional management, and fiscal stability. (2) A delineation of the institution's goals for its academic programs, institutional management, and fiscal stability, based on the outcomes of the analysis described in paragraph (b)(1) of this section. (3) Measurable objectives related to reaching each goal and timeframes for achieving the objectives. (4) Methods and resources that will be used to institutionalize practices and improvements developed under the proposed project. (5) Its five year plan to improve its services to Hispanic and other low-income students. (Authority: 20 U.S.C. 1101 et seq.) (a)(1) Under this part, the Secretary may award planning grants and two types of development grants, individual development grants and cooperative arrangement development grants. (2) Planning grants may be awarded for a period not to exceed one year. (3) Either type of development grant may be awarded for a period of five years. (b)(1) An institution that received an individual development grant of five years may not subsequently receive another individual development grant for a period of two years from the date on which the five-year grant terminates. (2) A cooperative arrangement grant is not considered to be an individual development grant under paragraph (b)(1) of this section. (Authority: 20 U.S.C. 1101c and 1103c) (a) Planning grants. Under a planning grant, a grantee shall formulate— (1) A comprehensive development plan described in §606.8; and (2) An application for a development grant. (b) Development grants—allowable activities. Under a development grant, except as provided in paragraph (c) of this section, a grantee shall carry out activities that implement its comprehensive development plan and hold promise for strengthening the institution. Activities that may be carried out include, but are not limited to— (1) Purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes. (2) Construction, maintenance, renovation, and improvement in classrooms, libraries, laboratories, and other instructional facilities. (3) Support of faculty exchanges, faculty development, curriculum development, academic instruction, and faculty fellowships to assist in attaining advanced degrees in the fellow's field of instruction. (4) Purchase of library books, periodicals, and other educational materials, including telecommunications program material. (5) Tutoring, counseling, and student service programs designed to improve academic success. (6) Funds management, administrative management, and acquisition of equipment for use in strengthening funds management. (7) Joint use of facilities, such as laboratories and libraries. (8) Establishing or improving a development office to strengthen or improve contributions from alumni and the private sector. (9) Establishing or improving an endowment fund, provided the grantee uses no more than 20 percent of its grant funds for this purpose and at least matches those grant funds with non-Federal funds. (10) Creating or improving facilities for Internet or other distance learning academic instruction capabilities, including purchase or rental of telecommunications technology equipment or services. (11) Establishing or enhancing a program of teacher education designed to qualify students to teach in public elementary or secondary schools. (12) Establishing community outreach programs that will encourage elementary school and secondary school students to develop the academic skills and the interest to pursue postsecondary education. (13) Expanding the number of Hispanic and other underrepresented graduate and professional students that can be served by the institution by expanding courses and institutional resources. (14) Other activities that contribute to carrying out the purposes of this program. (c) Development grants—unallowable activities. A grantee may not carry out the following activities or pay the following costs under a development grant: (1) Activities that are not included in the grantee's approved application. (2) Activities that are inconsistent with any State plan for higher education that is applicable to the institution, including, but not limited to, a State plan for desegregation of higher education. (3) Activities or services that relate to sectarian instruction or religious worship. (4) Activities provided by a school or department of divinity. For the purpose of this provision, a “school or department of divinity” means an institution, or a department of an institution, whose program is specifically for the education of students to prepare them to become ministers of religion or to enter into some other religious vocation or to prepare them to teach theological subjects. (5) Developing or improving non-degree or non-credit courses other than basic skills development courses. (6) Developing or improving community-based or community services programs, unless the program provides academic-related experiences or academic credit toward a degree for degree students, or, unless it is a program or services to encourage elementary and secondary school students to develop the academic skills and the interest to pursue postsecondary education. (7) Purchase of standard office equipment, such as furniture, file cabinets, bookcases, typewriters, or word processors. (8) Payment of any portion of the salary of a president, vice president, or equivalent officer who has college-wide administrative authority and responsibility at an institution to fill a position under the grant such as project coordinator or activity director. (9) Costs of organized fund-raising, including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred solely to raise capital or obtain contributions. (10) Costs of student recruitment such as advertisements, literature, and college fairs. (11) Services to high school students, unless they are services to encourage such students to develop the skills and the interest to pursue postsecondary education. (12) Instruction in the institution's standard courses as indicated in the institution's catalog. (13) Costs for health and fitness programs, transportation, and day care services. (14) Student activities such as entertainment, cultural, or social enrichment programs, publications, social clubs, or associations. (15) Activities that are operational in nature rather than developmental in nature. (d) Endowment funds. If a grantee uses part of its grant funds to establish or increase an endowment fund, it must comply with the provisions of §§628.3, 628.6, 628.10, and 628.41 through 628.47 of this chapter with regard to the use of those funds, except— (1) The definition of the term “endowment fund income” in §628.6 of this chapter does not apply. For the purposes of this paragraph (d), “endowment fund income” means an amount equal to the total value of the fund, including fund appreciation and retained interest and dividends, minus the endowment fund corpus; (2) Instead of the requirement in §628.10(a) of this chapter, the grantee institution must match each dollar of Federal grant funds used to establish or increase an endowment fund with one dollar of non-Federal funds; and (3) Instead of the requirements in §628.41(a)(3) through (a)(5) and the introductory text in §628.41(b) and §628.41(b)(2) and (b)(3) of this chapter, if a grantee institution decides to use any of its grant funds for endowment purposes, it must match those grant funds immediately with non-Federal funds when it places those funds into its endowment fund. (Authority: 20 U.S.C. 1101 et seq.) [64 FR 70147, Dec. 15, 1999, as amended at 65 FR 79310, Dec. 19, 2000]
Title 34: Education
PART 606—DEVELOPING HISPANIC-SERVING INSTITUTIONS PROGRAM
Subpart A—General
§ 606.1 What is the Developing Hispanic-Serving Institutions Program?
§ 606.2 What institutions are eligible to receive a grant under the Developing Hispanic-Serving Institutions Program?
§ 606.3 What is an enrollment of needy students?
§ 606.4 What are low educational and general expenditures?
§ 606.5 How does an institution apply to be designated an eligible institution?
§ 606.6 What regulations apply?
§ 606.7 What definitions apply?
§ 606.8 What is a comprehensive development plan and what must it contain?
§ 606.9 What are the type, duration, and limitations in the awarding of grants under this part?
§ 606.10 What activities may and may not be carried out under a grant?
