Federal Register: Part III : Authority: 20 U.S.C. 421-429, 1070b-1070b-3, 1070g, 1087aa- 1087ii; 42 U.S.C. 2751-2756b, unless otherwise noted.

OPPORTUNITY GRANT PROGRAM

Veterans Affairs Department

NOTICE: Part III

SUBJECT CATEGORY: Authority: 20 U.S.C. 421-429, 1070b-1070b-3, 1070g, 1087aa- 1087ii; 42 U.S.C. 2751-2756b, unless otherwise noted.

DOCUMENT SUMMARY: 23. Section 673.5 is amended by:
A. In paragraph (c)(2)(iii), adding the words ``TEACH Grants,'' immediately after the words ``the amounts of any'' and by removing the word ``loan'' which appears after the words ``if the sum of the''. B. Revising the authority citation to read as follows:
Sec. 673.5 Overaward.
* * * * *
(Authority: 20 U.S.C. 1070b1, 1070g, 1087dd, 1087hh; 42 U.S.C. 2753)
PART 674FEDERAL PERKINS LOAN PROGRAM
24. The authority citation for part 674 is revised to read as follows:

Authority: 20 U.S.C. 421429, 1070g, 1087aa1087hh, unless otherwise noted.
25. Section 674.2 is amended by:
A. In paragraph (a), adding, in alphabetical order, the terms ``Teacher Education Assistance for College and Higher Education (TEACH) Grant Program'' and ``TEACH Grant''.
B. Revising the authority citation to read as follows:
Sec. 674.2 Definitions.
* * * * *
(Authority: 20 U.S.C. 1070g, 1094)
26. Section 674.61 is amended by:
A. In paragraph (b)(2)(ii), adding the words ``a new TEACH Grant or'' immediately after the words ``does not receive''.
B. Revising the authority citation to read as follows:
Sec. 674.61 Discharge for death or disability.
* * * * *
(Authority: 20 U.S.C. 425, 1070g, 1087dd; sec. 130(g)(2) of the Education Amendments of 1976, Pub. L. 94482)
PART 675FEDERAL WORKSTUDY PROGRAMS
27. The authority citation for part 675 is revised to read as follows:

Authority: 20 U.S.C. 1070g; 42 U.S.C. 27512756b; unless otherwise noted.
[[Page 35495]]
28. Section 675.2 is amended by:
A. In paragraph (a), adding, in alphabetical order, the terms ``Teacher Education Assistance for College and Higher Education (TEACH) Grant Program'' and ``TEACH Grant''.
B. Revising the authority citation to read as follows:
Sec. 675.2 Definitions.
* * * * *
(Authority: 20 U.S.C. 1070g, 1087aa1087ii)
PART 676FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM
29. The authority citation for part 676 continues to read as follows:

Authority: 20 U.S.C. 1070b1070b3, 1070g, unless otherwise noted.
30. Section 676.2 is amended by:
A. In paragraph (a), adding, in alphabetical order, the terms ``Teacher Education Assistance for College and Higher Education (TEACH) Grant Program'' and ``TEACH Grant''.
B. Revising the authority citation to read as follows:
Sec. 676.2 Definitions.
* * * * *
(Authority: 20 U.S.C. 1070g, 1087aa1087ii)
PART 682FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM
31. The authority citation for part 682 is revised to read as follows:

Authority: 20 U.S.C 1070g, 1071 to 10872, unless otherwise noted.
32. Section 682.200 is amended by:
A. In paragraph (a)(1), adding, in alphabetical order, the terms ``Teacher Education Assistance for College and Higher Education (TEACH) Grant Program'' and ``TEACH Grant''.
B. In paragraph (b), in paragraph (2) of the definition of ``Estimated financial assistance,'' adding the words ``TEACH Grant,'' after the words ``the amounts of any'' and removing the word ``loan'' immediately following the words ``if the sum of the''.
33. Section 682.204 is amended by:
A. In paragraph (c), adding before the ``.'' the following words ``, except that any TEACH Grants that have been converted to Federal Direct Unsubsidized Loans are not counted against annual or any aggregate loan limits under this section.''
B. Adding an authority citation to read as follows:
Sec. 682.204 Maximum loan amounts.
* * * * *
(Authority: 20 U.S.C. 1070g, 1078, 10782, 10783, 10788)
Sec. 682.215 [Amended]
34. Section 682.215(c)(7)(ii) is amended by removing the citation ``(19 U.S.C. 2654)'' and adding in its place, the citation ``(29 U.S.C. 2601, et seq. )''.
35. Section 682.402 is amended by:
A. In paragraph (c)(1)(ii)(B), adding the words ``a new TEACH Grant or'' immediately after the words ``does not receive''.
B. Revising the authority citation to read as follows:
Sec. 682.402 Death, disability, closed school, false certification, unpaid refunds, and bankruptcy payments.
* * * * *
(Authority: 20 U.S.C. 1070g, 1078, 10781, 10782, 10783, 1082, 1087)
PART 685WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
36. The authority citation for part 685 is revised to read as follows:

Authority: 20 U.S.C 1070g, 1087a, et seq. , unless otherwise noted.
37. Section 685.102 is amended by:
A. In paragraph (a)(1), adding, in alphabetical order, the terms ``Teacher Education Assistance for College and Higher Education (TEACH) Grant Program'' and ``TEACH Grant''.
B. In paragraph (b), in paragraph (2)(i) of the definition of ``Estimated financial assistance,'' adding the words ``TEACH Grant,'' after the words ``the amounts of any'' and removing the word ``loan'' immediately following the words ``if the sum of the''.
C. Revising the authority citation to read as follows:
Sec. 685.102 Definitions.
* * * * *
(Authority: 20 U.S.C. 1070g, 1087a, et seq. )
38. Section 685.203 is amended by:
A. In paragraph (b), adding before the ``.'' the words ``, except that any TEACH Grants that have been converted to Federal Direct Unsubsidized Loans are not counted against annual or any aggregate loan limits under this section''.
B. Revising the authority citation to read as follows:
Sec. 685.203 Loan limits.
* * * * *
(Authority: 20 U.S.C. 1070g, 1087a, et seq. )
39. Section 685.213 is amended by:
A. In paragraph (c)(2), adding the words ``a new TEACH Grant or'' immediately after the words ``does not receive''.
B. Revising the authority citation to read as follows:
Sec. 685.213 Total and permanent disability discharge.
* * * * *
(Authority: 20 U.S.C. 1070g, 1087a, et seq. )
Sec. 685.217 [Amended]
40. Section 685.217(c)(7)(ii) is amended by removing the citation ``(19 U.S.C. 2654)'' and adding, in its place, the citation ``(29 U.S.C. 2601, et seq. )''.
41. A new part 686 is added to read as follows:
Subpart AScope, Purpose and General Definitions
Sec.
686.1 Scope and purpose.
686.2 Definitions.
686.3 Duration of student eligibility.
686.4 Institutional participation.
686.5 Enrollment status for students taking regular and
correspondence courses.
686.6 Payment from more than one institution.
Subpart BApplication Procedures
686.10 Application.
686.11 Eligibility to receive a grant.
686.12 Agreement to serve.
Subpart CDetermination of Awards
686.20 Submission process and deadline for a SAR or ISIR.
686.21 Calculation of a grant.
686.22 Calculation of a grant for a payment period.
686.23 Calculation of a grant for a payment period that occurs in two award years.
686.24 Transfer student: attendance at more than one institution during an award year.
686.25 Correspondence study.
Subpart DAdministration of Grant Payments
686.30 Scope.
686.31 Determination of eligibility for payment and cancellation of a TEACH Grant.
686.32 Counseling requirements.
686.33 Frequency of payment.
686.34 Liability for and recovery of TEACH Grant overpayments. 686.35 Recalculation of TEACH Grant award amounts.
686.36 Fiscal control and fund accounting procedures.
686.37 Institutional reporting requirements.
686.38 Maintenance and retention of records.
Subpart EService and Repayment Obligations
686.40 Documenting the service obligation.
686.41 Periods of suspension.
686.42 Discharge of agreement to serve.

686.43 Obligation to repay the grant.

Authority: 20 U.S.C. 1070g, et seq. , unless otherwise noted. [[Page 35496]]
Subpart AScope, Purpose, and General Definitions

Sec. 686.1 Scope and purpose.

The TEACH Grant program awards grants to students who intend to teach, to help meet the cost of their postsecondary education. In exchange for the grant, the student must agree to serve as a fulltime teacher in a highneed field, in a school serving lowincome students for at least four academic years within eight years of completing the program of study for which the student received the grant. If the student does not satisfy the service obligation, the amounts of the TEACH Grants received are treated as a Federal Direct Unsubsidized Stafford Loan (Federal Direct Unsubsidized Loan) and must be repaid with interest.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.2 Definitions.
(a) Definitions for the following terms used in this part are in the regulations for Institutional Eligibility under the Higher Education Act of 1965, as amended, (HEA) 34 CFR part 600:
Award year
Clock hour
Correspondence course
Eligible institution
Institution of higher education (institution)
Regular student
Secretary
State
Title IV, HEA program
(b) Definitions for the following terms used in this part are in subpart A of the Student Assistance General Provisions, 34 CFR part 668:
Academic year
Enrolled
Expected family contribution (EFC)
Fulltime student
Graduate or professional student
Halftime student
HEA
Payment period
Threequartertime student
Undergraduate student
William D. Ford Federal Direct Loan (Direct Loan) Program
(c) Definitions for the following terms used in this part are in 34 CFR part 77:
Local educational agency (LEA)
State educational agency (SEA)
(d) Other terms used in this part are defined as follows:

Academic year or its equivalent for elementary and secondary schools (elementary or secondary academic year):
(1) One complete school year, or two complete and consecutive half years from different school years, excluding summer sessions, that generally fall within a 12month period.
(2) If a school has a yearround program of instruction, the Secretary considers a minimum of nine consecutive months to be the equivalent of an academic year.

Agreement to serve (ATS): An agreement under which the individual receiving a TEACH Grant commits to meet the service obligation described in Sec. 686.12 and to comply with notification and other provisions of the agreement.

Annual award: The maximum TEACH Grant amount a student would receive for enrolling as a fulltime, threequartertime, halftime, or lessthanhalftime student and remaining in that enrollment status for a year.

Bilingual education: An educational program in which two languages are used to provide content matter instruction.

Elementary school: A nonprofit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under State law.

English language acquisition: The process of acquiring English as a second language.

Fulltime teacher: A teacher who meets the standard used by a State in defining fulltime employment as a teacher. For an individual teaching in more than one school, the determination of fulltime is based on the combination of all qualifying employment.

Highneed field: Includes the following:
(1) Bilingual education and English language acquisition.
(2) Foreign language.
(3) Mathematics.
(4) Reading specialist.
(5) Science.
(6) Special education.
(7) Another field documented as highneed by the Federal Government, a State government or an LEA, and approved by the Secretary and listed in the Department's annual Teacher Shortage Area Nationwide Listing (Nationwide List) in accordance with 34 CFR 682.210(q).

Highlyqualified: Has the meaning set forth in section 9101(23) of the Elementary and Secondary Education Act of 1965, as amended (ESEA) or in section 602(10) of the Individuals With Disabilities Education Act.

Institutional Student Information Record (ISIR): An electronic record that the Secretary transmits to an institution that includes an applicant's
(1) Personal identification information;
(2) Application data used to calculate the applicant's EFC; and (3) EFC.

Numeric equivalent: (1) If an otherwise eligible program measures academic performance using an alternative to standard numeric grading procedures, the institution must develop and apply an equivalency policy with a numeric scale for purposes of establishing TEACH Grant eligibility. The institution's equivalency policy must be in writing and available to students upon request and must include clear differentiations of student performance to support a determination that a student has performed at a level commensurate with at least a 3.25 GPA on a 4.0 scale in that program.
(2) A grading policy that includes only ``satisfactory/ unsatisfactory'', ``pass/fail'', or other similar nonnumeric assessments qualifies as a numeric equivalent only if
(i) The institution demonstrates that the ``pass'' or
``satisfactory'' standard has the numeric equivalent of at least a 3.25 GPA on a 4.0 scale awarded in that program, or that a student's performance for tests and assignments yielded a numeric equivalent of a 3.25 GPA on a 4.0 scale; and
(ii) For an eligible institution, the institution's equivalency policy is consistent with any other standards the institution may have developed for academic and other title IV, HEA program purposes, such as graduate school applications, scholarship eligibility, and insurance certifications, to the extent such standards distinguish among various levels of a student's academic performance.

Payment data: An electronic record that is provided to the Secretary by an institution showing student disbursement information.

Postbaccalaureate program: A program of instruction for individuals who have completed a baccalaureate degree, that (1) Does not lead to a graduate degree;
(2) Consists of courses required by a State in order for a student to receive a professional certification or licensing credential that is required for employment as a teacher in an elementary school or secondary school in that State, except that it does not include any program of instruction offered by a TEACH Granteligible institution that offers a baccalaureate degree in education; and
(3) Is treated as an undergraduate program of study for the purposes of title IV of the HEA.

Retiree: An individual who has decided to change his or her occupation for any reason and who has expertise, as determined by the institution, in a highneed field.

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Scheduled Award: The maximum amount of a TEACH Grant that a full time student could receive for a year.

School serving lowincome students (lowincome school): An elementary or secondary school that
(1) Is in the school district of an LEA that is eligible for assistance pursuant to title I of the ESEA;
(2) Has been determined by the Secretary to be a school in which more than 30 percent of the school's total enrollment is made up of children who qualify for services provided under title I of the ESEA; and
(3) Is listed in the Department's Annual Directory of Designated LowIncome Schools for Teacher Cancellation Benefits. The Secretary considers all elementary and secondary schools operated by the Bureau of Indian Education (BIE) in the Department of the Interior or operated on Indian reservations by Indian tribal groups under contract or grant with the BIE to qualify as schools serving lowincome students.

Secondary school: A nonprofit institutional day or residential school, including a public secondary charter school, that provides secondary education, as determined under State law, except that the term does not include any education beyond grade 12.

Student Aid Report (SAR): A report provided to an applicant by the Secretary showing the amount of his or her expected family contribution.

TEACH Granteligible institution: An eligible institution as defined in 34 CFR part 600 that meets financial responsibility standards established in 34 CFR part 668, subpart L, or that qualifies under an alternative standard in 34 CFR 668.175 and
(1) Provides a highquality teacher preparation program at the baccalaureate or master's degree level that
(i)(A) Is accredited by a specialized accrediting agency recognized by the Secretary for the accreditation of professional teacher education programs; or
(B) Is approved by a State and includes a minimum of 10 weeks of fulltime preservice clinical experience, or its equivalent, and provides either pedagogical coursework or assistance in the provision of such coursework; and
(ii) Provides supervision and support services to teachers, or assists in the provision of services to teachers, such as
(A) Identifying and making available information on effective teaching skills or strategies;
(B) Identifying and making available information on effective practices in the supervision and coaching of novice teachers; and (C) Mentoring focused on developing effective teaching skills and strategies;
(2) Provides a twoyear program that
(i) Is acceptable for full credit in a baccalaureate teacher preparation program of study offered by an institution described in paragraph (1) of this definition, as demonstrated by the institutions; or
(ii) Is acceptable for full credit in a baccalaureate degree program in a highneed field at an institution described in paragraph (3) of this definition, as demonstrated by the institutions; (3) Offers a baccalaureate degree that, in combination with other training or experience, will prepare an individual to teach in a high need field as defined in this part and has entered into an agreement with an institution described in paragraphs (1) or (4) of this definition to provide courses necessary for its students to begin a career in teaching; or

(4) Provides a postbaccalaureate program of study.

TEACH Granteligible program: An eligible program, as defined in 34 CFR 668.8, is a program of study that is designed to prepare an individual to teach as a highlyqualified teacher in a highneed field and leads to a baccalaureate or master's degree, or is a post baccalaureate program of study. A twoyear program of study that is acceptable for full credit toward a baccalaureate degree is considered to be a program of study that leads to a baccalaureate degree.

Teacher: A person who provides direct classroom teaching or classroomtype teaching in a nonclassroom setting, including special education teachers and reading specialists.

Teacher preparation program: A Stateapproved course of study, the completion of which signifies that an enrollee has met all the State's educational or training requirements for initial certification or licensure to teach in the State's elementary or secondary schools. A teacher preparation program may be a regular program or an alternative route to certification, as defined by the State. For purposes of a TEACH Grant, the program must be provided by an institution of higher education.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.3 Duration of student eligibility.
(a) An undergraduate or postbaccalaureate student enrolled in a TEACH Granteligible program may receive the equivalent of up to four Scheduled Awards during the period required for the completion of the first undergraduate baccalaureate program of study and first post baccalaureate program of study combined.
(b) A graduate student is eligible to receive the equivalent of up to two Scheduled Awards during the period required for the completion of a TEACH Granteligible master's degree program of study.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.4 Institutional participation.
(a) A TEACH Granteligible institution that offers one or more TEACH Granteligible programs may elect to participate in the TEACH Grant program.
(b) If an institution begins participation in the TEACH Grant program during an award year, a student enrolled at and attending that institution is eligible to receive a grant under this part for the payment period during which the institution begins participation and any subsequent payment period.
(c) If an institution ceases to participate in the TEACH Grant program or becomes ineligible to participate in the TEACH Grant program during an award year, a student who was attending the institution and who submitted a SAR with an official EFC to the institution, or for whom the institution obtained an ISIR with an official EFC, before the date the institution became ineligible will receive a TEACH Grant for that award year for
(1) The payment periods that the student completed before the institution ceased participation or became ineligible to participate; and
(2) The payment period in which the institution ceased participation or became ineligible to participate.
(d) An institution that ceases to participate in the TEACH Grant program or becomes ineligible to participate in the TEACH Grant program must, within 45 days after the effective date of the loss of eligibility, provide to the Secretary
(1) The name and other student identifiers as required by the Secretary of each eligible student under Sec. 686.11 who, during the award year, submitted a SAR with an official EFC to the institution or for whom it obtained an ISIR with an official EFC before it ceased to participate in the TEACH Grant program or became ineligible to participate;
(2) The amount of funds paid to each student for that award year; (3) The amount due each student eligible to receive a grant through the end of the payment period during which the institution ceased to participate in
[[Page 35498]]
the TEACH Grant program or became ineligible to participate; and (4) An accounting of the TEACH Grant program expenditures for that award year to the date of termination.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.5 Enrollment status for students taking regular and correspondence courses.
(a) If, in addition to regular coursework, a student takes correspondence courses from either his or her own institution or another institution having an arrangement for this purpose with the student's institution, the correspondence work may be included in determining the student's enrollment status to the extent permitted under paragraph (b) of this section.
(b) Except as noted in paragraph (c) of this section, the correspondence work that may be included in determining a student's enrollment status is that amount of work that
(1) Applies toward a student's degree or postbaccalaureate program of study or is remedial work taken by the student to help in his or her TEACH Granteligible program;
(2) Is completed within the period of time required for regular coursework; and
(3) Does not exceed the amount of a student's regular coursework for the payment period for which enrollment status is being calculated. (c)(1) Notwithstanding the limitation in paragraph (b)(3) of this section, a student who would be a halftime student based solely on his or her correspondence work is considered a halftime student unless the calculation in paragraph (b) of this section produces an enrollment status greater than halftime.
(2) A student who would be a lessthanhalftime student based solely on his or her correspondence work or a combination of correspondence work and regular coursework is considered a lessthan halftime student.
(d) The following chart provides examples of the application of the regulations set forth in this section. It assumes that the institution defines fulltime enrollment as 12 credits per term, making halftime enrollment equal to six credits per term.
Total course No. of load in credit No. of credit credit Under Sec. 686.5 hours hours hours to Enrollment status regular correspondence determine work enrollment status (b)(3).......................... 3 3 6 Halftime. (b)(3).......................... 3 6 6 Halftime. (b)(3).......................... 3 9 6 Halftime. (b)(3).......................... 6 3 9 Threequartertime. (b)(3).......................... 6 6 12 Fulltime. (b)(3) and (c).................. 2 6 6 Halftime. (c) *........................... ........... .............. ........... Lessthanhalftime. * Any combination of regular and correspondence work that is greater than zero, but less than six hours. (Authority: 20 U.S.C. 1070g, et seq. )

Sec. 686.6 Payment from more than one institution.

A student may not receive grant payments under this part concurrently from more than one institution.
(Authority: 20 U.S.C. 1070g, et seq. )
Subpart BApplication Procedures
Sec. 686.10 Application.
(a) To receive a grant under this part, a student must
(1) Complete and submit an approved signed application, as designated by the Secretary. A copy of this application is not acceptable;
(2) Complete and sign an agreement to serve and promise to repay; and
(3) Provide any additional information and assurances requested by the Secretary.
(b) The student must submit an application to the Secretary by (1) Sending the completed application to the Secretary; or (2) Providing the application, signed by all appropriate family members, to the institution which the student attends or plans to attend so that the institution can transmit the application information to the Secretary electronically.
(c) The student must provide the address of his or her residence. (d) For each award year, the Secretary, through publication in the Federal Register, establishes deadline dates for submitting to the Department the application and additional information and for making corrections to the information provided.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.11 Eligibility to receive a grant.
(a) Undergraduate, postbaccalaureate, and graduate students. (1) Except as provided in paragraph (b) of this section, a student who meets the requirements of 34 CFR part 668, subpart C, is eligible to receive a TEACH Grant if the student
(i) Has submitted a completed application;
(ii) Has signed an agreement to serve as required under Sec. 686.12;
(iii) Is enrolled in a TEACH Granteligible institution in a TEACH Granteligible program;
(iv) Is completing coursework and other requirements necessary to begin a career in teaching or plans to complete such coursework and requirements prior to graduating; and
(v) Has
(A) If the student is in the first year of a program of undergraduate education as determined by the institution
(1) A final cumulative secondary school grade point average (GPA) upon graduation of at least 3.25 on a 4.0 scale, or the numeric equivalent; or
(2) A cumulative GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, based on courses taken at the institution through the mostrecently completed payment period;
(B) If the student is beyond the first year of a program of undergraduate education as determined by the institution, a cumulative undergraduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, through the most recently completed payment period; (C) If the student is a graduate student during the first payment period, a cumulative undergraduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent;
(D) If the student is a graduate student beyond the first payment period, a
[[Page 35499]]
cumulative graduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, through the mostrecently completed payment period; or (E) A score above the 75th percentile of scores achieved by all students taking the test during the period the student took the test on at least one of the batteries from a nationallynormed standardized undergraduate, graduate, or postbaccalaureate admissions test, except that such test may not include a placement test.
(2)(i) An institution must document the student's secondary school GPA under Sec. 686.11(a)(1)(v)(A) using
(A) Documentation provided directly to the institution by the cognizant authority; or
(B) Documentation from the cognizant authority provided by the student.
(ii) A cognizant authority includes, but is not limited to (A) An LEA;
(B) An SEA or other State agency; or
(C) A public or private secondary school.
(iii) A homeschooled student's parent or guardian is the cognizant authority for purposes of providing the documentation of a home schooled student's secondary school GPA.
(iv) If an institution has reason to believe the documentation provided by a student under paragraph (a)(2)(i)(B) of this section is inaccurate or incomplete, the institution must confirm the student's grades by using documentation provided directly to the institution by the cognizant authority.
(b) Current or former teachers or retirees. A student who has submitted a completed application and meets the requirements of 34 CFR part 668, subpart C, is eligible to receive a TEACH Grant if the student
(1) Has signed an agreement to serve as required under Sec. 686.12;
(2) Is a current teacher or retiree who is applying for a grant to obtain a master's degree or is or was a teacher who is pursuing certification through a highquality alternative certification route; and
(3) Is enrolled in a TEACH Granteligible institution in a TEACH Granteligible program during the period required for the completion of a master's degree.
(c) Transfer students. If a student transfers from one institution to the current institution and does not qualify under Sec. 686.11(a)(1)(v)(E), the current institution must determine that student's eligibility for a TEACH Grant for the first payment period using either the method described in paragraph (c)(1) of this section or the method described in paragraph (c)(2) of this section, whichever method coincides with the current institution's academic policy. For an eligible student who transfers to an institution that
(1) Does not incorporate grades from coursework that it accepts on transfer into the student's GPA at the current institution, the current institution, for the courses accepted upon transfer
(i) Must calculate the student's GPA for the first payment period of enrollment using the grades earned by the student in the coursework from any prior postsecondary institution that it accepts; and (ii) Must, for all subsequent payment periods, apply its academic policy and not incorporate the grades from the coursework that it accepts on transfer into the GPA at the current institution; or (2) Incorporates grades from the coursework that it accepts on transfer into the student's GPA at the current institution, the current institution must use the grades assigned to the coursework accepted by the current institution as the student's cumulative GPA to determine eligibility for the first payment period of enrollment and all subsequent payment periods in accordance with its academic policy. (Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.12 Agreement to serve.
(a) General. A student who meets the eligibility requirements in Sec. 686.11 may receive a TEACH Grant only after he or she signs an agreement to serve provided by the Secretary and receives counseling in accordance with Sec. 686.32.
(b) Contents of the agreement to serve. The agreement provides that, for each TEACH Granteligible program for which the student received TEACH Grant funds, the grant recipient must fulfill a service obligation by performing creditable teaching service by
(1) Serving as a fulltime teacher for a total of not less than four elementary or secondary academic years within eight calendar years after completing the program or otherwise ceasing to be enrolled in the program for which the recipient received the TEACH Grant
(i) In a lowincome school;
(ii) As a highlyqualified teacher; and
(iii) In a highneed field in the majority of classes taught during each elementary and secondary academic year.
(2) Submitting, upon completion of each year of service, documentation of the service in the form of a certification by a chief administrative officer of the school; and
(3) Complying with the terms, conditions, and other requirements consistent with Sec. Sec. 686.40686.43 that the Secretary determines to be necessary.
(c) Completion of more than one service obligation.
(1) A grant recipient must complete a service obligation for each program of study for which he or she received TEACH Grants. Each service obligation begins following the completion or other cessation of enrollment by the student in the TEACH Granteligible program for which the student received TEACH Grant funds. However, creditable teaching service may apply to more than one service obligation. (2) A grant recipient may request a suspension, in accordance with Sec. 686.41, of the eightyear time period in paragraph (b)(1) of this section.
(d) Majoring and serving in a highneed field. A grant recipient who completes a TEACH Granteligible program in a field that is listed in the Nationwide List cannot satisfy his or her service obligation to teach in that highneed field unless the highneed field in which he or she has prepared to teach is listed in the Nationwide List for the State in which the grant recipient begins teaching at the time the recipient begins teaching in that field.
(e) Repayment for failure to complete service obligation. If a grant recipient fails or refuses to carry out the required service obligation described in paragraph (b) of this section, the TEACH Grants received by the recipient must be repaid and will be treated as a Federal Direct Unsubsidized Loan, with interest accruing from the date of each TEACH Grant disbursement, in accordance with applicable sections of subpart B of 34 CFR part 685.
(Authority: 20 U.S.C. 1070g, et seq. )
Subpart CDetermination of Awards
Sec. 686.20 Submission process and deadline for a SAR or ISIR. (a) Submission process. (1) Except as provided in paragraph (a)(2) of this section, an institution must disburse a TEACH Grant to a student who is eligible under Sec. 686.11 and is otherwise qualified to receive that disbursement and electronically transmit disbursement data to the Secretary for that student if
(i) The student submits a SAR with an official EFC to the institution; or
(ii) The institution obtains an ISIR with an official EFC for the student.
(2) In determining a student's eligibility to receive a grant under this part, an institution is entitled to assume that the SAR information or ISIR information is accurate and complete except under the conditions set forth in 34 CFR 668.16(f).
[[Page 35500]]
(b) SAR or ISIR deadline. Except as provided in 34 CFR 668.164(g), for a student to receive a grant under this part in an award year, the student must submit the relevant parts of the SAR with an official EFC to his or her institution or the institution must obtain an ISIR with an official EFC by the earlier of
(1) The last date that the student is still enrolled and eligible for payment at that institution; or
(2) By the deadline date established by the Secretary through publication of a notice in the Federal Register.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.21 Calculation of a grant.
(a)(1)(i) The Scheduled Award for a TEACH Grant for an eligible student is $4,000.
(ii) Each Scheduled Award remains available to an eligible student until the $4,000 is disbursed.
(2)(i) The aggregate amount that a student may receive in TEACH Grants for undergraduate and postbaccalaureate study may not exceed $16,000.
(ii) The aggregate amount that a student may receive in TEACH Grants for a master's degree may not exceed $8,000.
(b) The annual award for
(1) A fulltime student is $4,000;
(2) A threequartertime student is $3,000;
(3) A halftime student is $2,000; and
(4) A lessthanhalftime student is $1,000.
(c) Except as provided in paragraph (d) of this section, the amount of a student's grant under this part, in combination with the other student financial assistance available to the student, including the amount of a Federal Pell Grant for which the student is eligible, may not exceed the student's cost of attendance at the TEACH Granteligible institution. Other student financial assistance is estimated financial assistance, as defined in 34 CFR 673.5(c).
(d) A TEACH Grant may replace a student's EFC, but the amount of the grant that exceeds the student's EFC is considered estimated financial assistance, as defined in 34 CFR 673.5(c).
(e) In determining a student's payment for a payment period, an institution must include
(1) In accordance with 34 CFR 668.20, any noncredit or reduced credit courses that an institution determines are necessary (i) To help a student be prepared for the pursuit of a first undergraduate baccalaureate or postbaccalaureate degree or certificate; or
(ii) In the case of English language instruction, to enable the student to utilize already existing knowledge, training, or skills; and (2) In accordance with 34 CFR 668.5, a student's participation in a program of study abroad if it is approved for credit by the home institution at which the student is enrolled.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.22 Calculation of a grant for a payment period. (a) Eligibility for payment formula(1) Programs using standard terms with at least 30 weeks of instructional time. A student's grant for a payment period is calculated under paragraph (b) or (d) of this section if
(i) The student is enrolled in an eligible program that (A) Measures progress in credit hours;
(B) Is offered in semesters, trimesters, or quarters; and (C)(1) For an undergraduate student, requires the student to enroll for at least 12 credit hours in each term in the award year to qualify as a fulltime student; or
(2) For a graduate student, each term in the award year meets the minimum fulltime enrollment status established by the institution for a semester, trimester, or quarter; and
(ii) The program uses an academic calendar that provides at least 30 weeks of instructional time in
(A) Two semesters or trimesters in the fall through the following spring, or three quarters in the fall, winter, and spring, none of which overlaps any other term (including a summer term) in the program; or
(B) Any two semesters or trimesters, or any three quarters where (1) The institution starts its terms for different cohorts of students on a periodic basis (e.g., monthly);
(2) The program is offered exclusively in semesters, trimesters, or quarters; and
(3) Students are not allowed to be enrolled simultaneously in overlapping terms and must stay with the cohort in which they start unless they withdraw from a term (or skip a term) and reenroll in a subsequent term.
(2) Programs using standard terms with less than 30 weeks of instructional time. A student's payment for a payment period is calculated under paragraph (c) or (d) of this section if
(i) The student is enrolled in an eligible program that (A) Measures progress in credit hours;
(B) Is offered in semesters, trimesters, or quarters;
(C)(1) For an undergraduate student, requires the student to enroll in at least 12 credit hours in each term in the award year to qualify as a fulltime student; or
(2) For a graduate student, each term in the award year meets the minimum fulltime enrollment status established by the institution for a semester, trimester, or quarter; and
(D) Is not offered with overlapping terms; and
(ii) The institution offering the program
(A) Provides the program using an academic calendar that includes two semesters or trimesters in the fall through the following spring, or three quarters in the fall, winter, and spring; and
(B) Does not provide at least 30 weeks of instructional time in the terms specified in paragraph (a)(2)(ii)(A) of this section. (3) Other programs using terms and credit hours. A student's payment for a payment period is calculated under paragraph (d) of this section if the student is enrolled in an eligible program that (i) Measures progress in credit hours; and
(ii) Is offered in academic terms other than those described in paragraphs (a)(1) and (2) of this section.
(4) Programs not using terms or using clock hours. A student's payment for any payment period is calculated under paragraph (e) of this section if the student is enrolled in an eligible program that (i) Is offered in credit hours but is not offered in academic terms; or
(ii) Is offered in clock hours.
(5) Programs for which an exception to the academic year definition has been granted under 34 CFR 668.3. If an institution receives a waiver from the Secretary of the 30 weeks of instructional time requirement under 34 CFR 668.3, an institution may calculate a student's payment for a payment period using the following methodologies:
(i) If the program is offered in terms and credit hours, the institution uses the methodology in
(A) Paragraph (b) of this section provided that the program meets all the criteria in paragraph (a)(1) of this section, except that in lieu of meeting the requirements in paragraph (a)(1)(ii)(B) of this section, the program provides at least the same number of weeks of instructional time in the terms specified in paragraph (a)(1)(ii)(A) of this section as are in the program's academic year; or
(B) Paragraph (d) of this section.
(ii) The institution uses the methodology described in paragraph (e)
[[Page 35501]]
of this section if the program is offered in credit hours without terms.
(b) Programs using standard terms with at least 30 weeks of instructional time. The payment for a payment period, i.e., an academic term, for a student in a program using standard terms with at least 30 weeks of instructional time in two semesters or trimesters or in three quarters as described in paragraph (a)(1)(ii) of this section, is calculated by
(1) Determining his or her enrollment status for the term; (2) Based upon that enrollment status, determining his or her annual award; and
(3) Dividing the amount described in paragraph (b)(2) of this section by
(i) Two at institutions using semesters or trimesters or three at institutions using quarters; or
(ii) The number of terms over which the institution chooses to distribute the student's annual award if
(A) An institution chooses to distribute all of the student's annual award determined under paragraph (b)(2) of this section over more than two terms at institutions using semesters or trimesters or more than three quarters at institutions using quarters; and (B) The number of weeks of instructional time in the terms, including the additional term or terms, equals the weeks of instructional time in the program's academic year.
(c) Programs using standard terms with less than 30 weeks of instructional time. The payment for a payment period, i.e., an academic term, for a student in a program using standard terms with less than 30 weeks of instructional time in two semesters or trimesters or in three quarters as described in paragraph (a)(2)(ii)(A) of this section, is calculated by
(1) Determining his or her enrollment status for the term; (2) Based upon that enrollment status, determining his or her annual award;
(3) Multiplying his or her annual award determined under paragraph (c)(2) of this section by the following fraction as applicable: (i) In a program using semesters or trimesters

The number of weeks of instructional time offered in the program in the fall and spring semesters or trimesters

The number of weeks in the program's academic year (ii) In a program using quarters
[GRAPHIC] [TIFF OMITTED] TR23JN08.023

; and
(4)(i) Dividing the amount determined under paragraph (c)(3) of this section by two for programs using semesters or trimesters or three for programs using quarters; or
(ii) Dividing the student's annual award determined under paragraph (c)(2) of this section by the number of terms over which the institution chooses to distribute the student's annual award if (A) An institution chooses to distribute all of the student's annual award determined under paragraph (c)(2) of this section over more than two terms for programs using semesters or trimesters or more than three quarters for programs using quarters; and
(B) The number of weeks of instructional time in the terms, including the additional term or terms, equals the weeks of instructional time in the program's academic year definition. (d) Other programs using terms and credit hours. The payment for a payment period, i.e., an academic term, for a student in a program using terms and credit hours, other than those described in paragraph (a)(1) or (2) of this section, is calculated by
(1) Determining his or her enrollment status for the term; (2) Based upon that enrollment status, determining his or her annual award; and
(3) Multiplying his or her annual award determined under paragraph (d)(2) of this section by the following fraction:
[GRAPHIC] [TIFF OMITTED] TR23JN08.024
(e) Programs using credit hours without terms or clock hours. The payment for a payment period for a student in a program using credit hours without terms or using clock hours is calculated by multiplying the Scheduled Award by the lesser of
(1)
[GRAPHIC] [TIFF OMITTED] TR23JN08.025

; or
(2)
[GRAPHIC] [TIFF OMITTED] TR23JN08.026

(f) Maximum disbursement. A single disbursement may not exceed 50 percent of an award determined under paragraph (d) or (e) of this section. If a payment for a payment period calculated under paragraph (d) or (e) of
[[Page 35502]]
this section would require the disbursement of more than 50 percent of a student's annual award in that payment period, the institution must make at least two disbursements to the student in that payment period. The institution may not disburse an amount that exceeds 50 percent of the student's annual award until the student has completed the period of time in the payment period that equals, in terms of weeks of instructional time, 50 percent of the weeks of instructional time in the program's academic year.
(g) Minimum payment. No payment for a payment period as determined under this section or Sec. 686.25 may be less than $25.
(h) Definition of academic year. For purposes of this section and Sec. 686.25, an institution must define an academic year
(1) For each of its TEACH Granteligible undergraduate programs of study, including postbaccalaureate programs of study, in terms of the number of credit or clock hours and weeks of instructional time in accordance with the requirements of 34 CFR 668.3; and
(2) For each of its TEACH Granteligible master's degree programs of study in terms of the number of weeks of instructional time in accordance with the requirements of 34 CFR 668.3 and the minimum number of credit or clock hours a fulltime student would be expected to complete in the weeks of instructional time of the program's academic year.
(i) Payment period completing a Scheduled Award. In a payment period, if a student is completing a Scheduled Award, the student's payment for the payment period
(1) Is calculated based on the total credit or clock hours and weeks of instructional time in the payment period; and
(2) Is the remaining amount of the Scheduled Award being completed plus an amount from the next Scheduled Award, if available, up to the payment for the payment period.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.23 Calculation of a grant for a payment period that occurs in two award years.

If a student enrolls in a payment period that is scheduled to occur in two award years
(a) The entire payment period must be considered to occur within one award year;
(b) The institution must determine for each TEACH Grant recipient the award year in which the payment period will be placed subject to the restriction set forth in paragraph (c) of this section; (c) The institution must place a payment period with more than six months scheduled to occur within one award year in that award year; (d) If the institution places the payment period in the first award year, it must pay a student with funds from the first award year; and (e) If the institution places the payment period in the second award year, it must pay a student with funds from the second award year.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.24 Transfer student: attendance at more than one institution during an award year.
(a) If a student who receives a TEACH Grant at one institution subsequently enrolls at a second institution, the student may receive a grant at the second institution only if
(1) The student submits a SAR with an official EFC to the second institution; or
(2) The second institution obtains an ISIR with an official EFC. (b) The second institution must calculate the student's award in accordance with Sec. 686.22 or 686.25.
(c) The second institution may pay a TEACH Grant only for that period in which a student is enrolled in a TEACH Granteligible program at that institution.
(d) The student's TEACH Grant for each payment period is calculated according to the procedures in Sec. 686.22 or 686.25 unless the remaining balance of the Scheduled Award at the second institution is the balance of the student's last Scheduled Award and is less than the amount the student would normally receive for that payment period. (e) A transfer student must repay any amount received in an award year that exceeds the amount which he or she was eligible to receive. (Authority: 20 U.S.C. 1070g, et seq.)
Sec. 686.25 Correspondence study.
(a) An institution calculates a TEACH Grant for a payment period for a student in a program of study offered by correspondence courses without terms, but not including any residential component, by (1) Using the halftime annual award; and
(2) Multiplying the halftime annual award by the lesser of (i)
[GRAPHIC] [TIFF OMITTED] TR23JN08.027

; or
(ii)
[GRAPHIC] [TIFF OMITTED] TR23JN08.028

(b) For purposes of paragraph (a) of this section
(1) An academic year as measured in credit or clock hours must consist of two payment periods
(i) The first payment period must be the period of time in which the student completes the lesser of the first half of his or her academic year or program; and
(ii) The second payment period must be the period of time in which the student completes the lesser of the second half of the academic year or program; and
(2)(i) The institution must make the first payment to a student for an academic year, as calculated under paragraph (a) of this section, after the student submits 25 percent of the lessons or otherwise completes 25 percent of the work scheduled for the program or the academic year, whichever occurs last; and
(ii) The institution must make the second payment to a student for an
[[Page 35503]]
academic year, as calculated under paragraph (a) of this section, after the student submits 75 percent of the lessons or otherwise completes 75 percent of the work scheduled for the program or the academic year, whichever occurs last.
(c) In a program of correspondence study offered by correspondence courses using terms but not including any residential component (1) The institution must prepare a written schedule for submission of lessons that reflects a workload of at least 30 hours of preparation per semester hour or 20 hours of preparation per quarter hour during the term;
(2)(i) If the student is enrolled in at least six credit hours that commence and are completed in that term, the halftime annual award is used; or
(ii) If the student is enrolled in less than six credit hours that commence and are completed in that term the lessthanhalftime annual award is used;
(3) A payment for a payment period is calculated using the formula in Sec. 686.22(d) except that paragraphs (c)(1) and (2) of this section are used in lieu of Sec. 686.22(d)(1) and (2), respectively; and
(4) The institution must make the payment to a student for a payment period after that student completes 50 percent of the lessons or otherwise completes 50 percent of the work scheduled for the term, whichever occurs last.
(d) Payments for periods of residential training must be calculated under Sec. 686.22(d) if the residential training is offered using terms and credit hours or under Sec. 686.22(e) if the residential training is offered using credit hours without terms or clock hours. (Authority: 20 U.S.C. 1070g, et seq. )
Subpart DAdministration of Grant Payments

Sec. 686.30 Scope.

This subpart deals with TEACH Grant program administration by a TEACH Granteligible institution.
(Authority: 20 U.S.C. 1070g, et seq.)
Sec. 686.31 Determination of eligibility for payment and cancellation of a TEACH Grant.
(a) For each payment period, an institution may pay a grant under this part to an eligible student only after it determines that the student
(1) Is eligible under Sec. 686.11;
(2) Has completed the relevant initial or subsequent counseling as required in Sec. 686.32;
(3) Has signed an agreement to serve as described in Sec. 686.12; (4) Is enrolled in a TEACH Granteligible program; and
(5) If enrolled in a credithour 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 changes that determination before the end of the payment period, the institution may pay a TEACH Grant to the student for the entire payment period.
(2) If an institution determines at the beginning of a payment period that a student enrolled in a TEACH Granteligible program is not maintaining the required GPA for a TEACH Grant under Sec. 686.11 or is not pursuing a career in teaching, but changes that determination before the end of the payment period, the institution may pay a TEACH 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 a TEACH Grant under Sec. 686.11 or is not pursuing a career in teaching, but changes that determination after the end of the payment period, the institution may not pay the student a TEACH Grant for that payment period or make adjustments in subsequent payments to compensate for the loss of aid for that period.
(d) An institution may make one disbursement for a payment period to an otherwise eligible student if
(1)(i) The student's final high school GPA is not yet available; or (ii) The student's cumulative GPA through the prior payment period under Sec. 686.11 is not yet available; and
(2) The institution assumes liability for any overpayment if the student fails to meet the required GPA to qualify for the disbursement. (e)(1) In accordance with 34 CFR 668.165, before disbursing a TEACH Grant for any award year, an institution must
(i) Notify the student of the amount of TEACH Grant funds that the student is eligible to receive, how and when those funds will be disbursed, and the student's right to cancel all or a portion of the TEACH Grant; and
(ii) Return the TEACH Grant proceeds, cancel the TEACH Grant, or both, if the institution receives a TEACH Grant cancellation request from the student by the later of the first day of a payment period or 14 days after the date it notifies the student of his or her right to cancel all or a portion of a TEACH Grant.
(2)(i) If a student requests cancellation of a TEACH Grant after the period of time in paragraph (e)(1)(ii) of this section, but within 120 days of the TEACH Grant disbursement date, the institution may return the TEACH Grant proceeds, cancel the TEACH Grant, or do both. (ii) If the institution does not return the TEACH Grant proceeds, or cancel the TEACH Grant, the institution must notify the student that he or she may contact the Secretary to request that the TEACH Grant be converted to a Federal Direct Unsubsidized Loan.
(Authority: 20 U.S.C. 1070g, et seq. )
Sec. 686.32 Counseling requirements.
(a) Initial counseling. (1) An institution must ensure that initial counseling is conducted with each TEACH Grant recipient prior to making the first disbursement of the grant.
(2) The initial counseling must be in person, by audiovisual presentation, or by interactive electronic means. In each case, the institution must ensure that an individual with expertise in title IV, HEA programs is reasonably available shortly after the counseling to answer the student's questions. As an alternative, in the case of a student enrolled in a correspondence program of study or a studyabroad program of study approved for credit at the home institution, the student may be provided with written counseling materials before the grant is disbursed.
(3) The initial counseling must
(i) Explain the terms and conditions of the TEACH Grant agreement to serve as described in Sec. 686.12;
(ii) Provide the student with information about how to identify lowincome schools and documented highneed fields;
(iii) Inform the grant recipient that, in order for the teaching to count towards the recipient's service obligation, the highneed field in which he or she has prepared to teach must be
(A) One of the six highneed fields listed in Sec. 686.2; or (B) A highneed field listed in the Nationwide List at the time and for the State in which the grant recipient begins teaching in that field.
(iv) Inform the grant recipient of the opportunity to request a suspension of the eightyear period for completion of the agreement to serve and the conditions under which a suspension may be granted in accordance with Sec. 686.41;
(v) Explain to the student that conditions, such as conviction of a [[Page 35504]]
felony, could preclude the student from completing the service obligation;
(vi) Emphasize to the student that if the student fails or refuses to complete the service obligation contained in the agreement to serve or any other condition of the agreement to serve
(A) The TEACH Grant must be repaid as a Federal Direct Unsubsidized Loan; and
(B) The TEACH Grant recipient will be obligated to repay the full amount of each grant and the accrued interest from each disbursement date;
(vii) Explain the circumstances, as described in Sec. 686.43, under which a TEACH Grant will be converted to a Federal Direct Unsubsidized Loan;
(viii) Emphasize that, once a TEACH Grant is converted to a Federal Direct Unsubsidized Loan, it cannot be reconverted to a grant; (ix) Review for the grant recipient information on the availability of the Department's Student Loan Ombudsman's office;
(x) Describe the likely consequences of loan default, including adverse credit reports, garnishment of wages, Federal offset, and litigation; and
(xi) Inform the student of sample monthly repayment amounts based on a range of student loan indebtedness.
(b) Subsequent counseling. (1) If a student receives more than one TEACH Grant, the institution must ensure that the student receives additional counseling prior to the first disbursement of each subsequent TEACH Grant award.
(2) Subsequent counseling may be in person, by audiovisual presentation, or by interactive electronic means. In each case, the institution must ensure that an individual with expertise in title IV, HEA programs is reasonably available shortly after the counseling to answer the student's questions. As an alternative, in the case of a student enrolled in a correspondence program of study or a studyabroad program of study approved for credit at the home institution, the student may be provided with written counseling materials before the grant is disbursed.
(3) Subsequent counseling must
(i) Review the terms and conditions of the TEACH Grant agreement to serve as described in Sec. 686.12;
(ii) Emphasize to the student that if the student fails or refuses to complete the service obligation contained in the agreement to serve or any other condition of the agreement to serve
(A) The TEACH Grant must be repaid as a Federal Direct Unsubsidized Loan; and
(B) The TEACH Grant recipient will be obligated to repay the full amount of the grant and the accrued interest from the disbursement date;
(iii) Explain the circumstances, as described in Sec. 686.34, under which a TEACH Grant will be converted to a Federal Direct Unsubsidized Loan;
(iv) Emphasize that, once a TEACH Grant is converted to a Federal Direct Unsubsidized Loan, it cannot be reconverted to a grant; and (v) Review for the grant recipient information on the availability of the Department's Student Loan Ombudsman's office.
(c) Exit counseling. (1) An institution must ensure that exit counseling is conducted with each grant recipient before he or she ceases to attend the institution at a time determined by the institution.
(2) The exit counseling must be in person, by audiovisual presentation, or by interactive electronic means. In each case, the institution must ensure that an individual with expertise in title IV, HEA programs is reasonably available shortly after the counseling to answer the grant recipient's questions. As an alternative, in the case of a grant recipient enrolled in a correspondence program of study or a studyabroad program of study approved for credit at the home institution, the grant recipient may be provided with written counseling materials within 30 days after he or she completes the TEACH Granteligible program.
(3) Within 30 days of learning that a grant recipient has withdrawn from the institution without the institution's knowledge, or from a TEACH Granteligible program, or failed to complete exit counseling as required, exit counseling must be provided either inperson, through interactive electronic means, or by mailing written counseling materials to the grant recipient's last known address.
(4) The exit counseling must
(i) Inform the grant recipient of the fouryear service obligation that must be completed within the first eight calendar years after completing a TEACH Granteligible program in accordance with Sec. 686.12;
(ii) Inform the grant recipient of the opportunity to request a suspension of the eightyear period for completion of the service obligation and the conditions under which a suspension may be granted in accordance with Sec. 686.41;
(iii) Provide the grant recipient with information about how to identify lowincome schools and documented highneed fields;
(iv) Inform the grant recipient that, in order for the teaching to count towards the recipient's service obligation, the highneed field in which he or she has prepared to teach must be
(A) One of the six highneed fields listed in Sec. 686.2; or (B) A highneed field listed in the Nationwide List at the time and for the State in which the grant recipient begins teaching in that field.
(v) Explain that the grant recipient will be required to submit to the Secretary each year written documentation of his or her status as a highlyqualified teacher in a highneed field at a lowincome school or of his or her intent to complete the fouryear service obligation until the date that the service obligation has been met or the date that the grant becomes a Federal Direct Unsubsidized Loan, whichever occurs first;
(vi) Explain the circumstances, as described in Sec. 686.43, under which a TEACH Grant will be converted to a Federal Direct Unsubsidized Loan;
(vii) Emphasize that once a TEACH Grant is converted to a Federal Direct Unsubsidized Loan it cannot be reconverted to a grant; (viii) Inform the grant recipient of the average anticipated monthly repayment amount based on a range of student loan indebtedness if the TEACH Grants convert to a Federal Direct Unsubsidized Loan; (ix) Review for the grant recipient available repayment options if the TEACH Grant converts to a Federal Direct Unsubsidized Loan, including the standard repayment, extended repayment, graduated repayment, incomecontingent

SUMMARY: Education Department,

DOCUMENT BODY 2: 23. Section 673.5 is amended by:
A. In paragraph (c)(2)(iii), adding the words ``TEACH Grants,'' immediately after the words ``the amounts of any'' and by removing the word ``loan'' which appears after the words ``if the sum of the''. B. Revising the authority citation to read as follows:
Sec. 673.5 Overaward.
* * * * *
(Authority: 20 U.S.C. 1070b1, 1070g, 1087dd, 1087hh; 42 U.S.C. 2753)
PART 674FEDERAL PERKINS LOAN PROGRAM
24. The authority citation for part 674 is revised to read as follows: