The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program and Other Federal Student Aid Programs, 35472-35507 [E8-13587]

Agencies

• Department of Education/
• DEPARTMENT OF EDUCATION

[Federal Register Volume 73, Number 121 (Monday, June 23, 2008)]
[Rules and Regulations]
[Pages 35472-35507]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-13587]



[[Page 35471]]

-----------------------------------------------------------------------

Part III





Department of Education





-----------------------------------------------------------------------



34 CFR Parts 668, 673, 674, et al.



The Teacher Education Assistance for College and Higher Education 
(TEACH) Grant Program and Other Federal Student Aid Programs; Final 
Rule

Federal Register / Vol. 73, No. 121 / Monday, June 23, 2008 / Rules 
and Regulations

[[Page 35472]]


-----------------------------------------------------------------------

DEPARTMENT OF EDUCATION/

34 CFR Parts 668, 673, 674, 675, 676, 682, 685, 686, and 690

RIN 1840-AC93
[Docket ID ED-2008-OPE-0001]


The Teacher Education Assistance for College and Higher Education 
(TEACH) Grant Program and Other Federal Student Aid Programs

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The Secretary amends title 34 of the Code of Federal 
Regulations to establish regulations for the Teacher Education 
Assistance for College and Higher Education (TEACH) Grant program. The 
TEACH Grant program is a non-need-based grant program that provides up 
to $4,000 per year to students who are enrolled in an eligible program 
and who agree to teach in a high-need field, at a low-income elementary 
or secondary school for at least four years within eight years of 
completing the program for which the TEACH Grant was awarded. If the 
grant recipient fails to complete the required teaching service, the 
TEACH Grant is treated as a Federal Direct Unsubsidized Stafford Loan 
(Federal Direct Unsubsidized Loan). The Secretary also amends the 
regulations related to the Student Assistance General Provisions; the 
General Provisions for the Federal Perkins Loan Program, Federal Work-
Study Program, and Federal Supplemental Educational Opportunity Grant 
Program; the Federal Perkins Loan Program; the Federal Work-Study 
Program; the Federal Supplemental Educational Opportunity Grant 
Program; the Federal Family Education Loan (FFEL) Program; the William 
D. Ford Federal Direct Loan Program; and the Federal Pell Grant Program 
to implement the TEACH Grant program. These regulations are needed to 
implement provisions of the Higher Education Act of 1965 (HEA), as 
amended by the College Cost Reduction and Access Act of 2007 (CCRAA).

DATES: Effective Date: These regulations are effective July 1, 2008.

FOR FURTHER INFORMATION CONTACT: Michelle Belton, U.S. Department of 
Education, 1990 K Street, NW., room 8031, Washington, DC 20006-8502. 
Telephone: (202) 502-7821 or via the Internet at: 
Michelle.Belton@ed.gov.
    If you use a telecommunications device for the deaf (TDD), call the 
Federal Relay Service (FRS), toll free, at 1-800-877-8339.
    Individuals with disabilities can obtain this document in an 
alternative format (e.g. , Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed in this section.

SUPPLEMENTARY INFORMATION: On March 21, 2008, the Secretary published a 
notice of proposed rulemaking (NPRM) for the Teacher Education 
Assistance for College and Higher Education (TEACH) Grant Program and 
Other Federal Student Aid Programs in the Federal Register (73 FR 
15336).
    In the preamble to the NPRM, the Secretary discussed on pages 15337 
through 15352 the major regulations proposed in that document to 
implement the TEACH Grant program authorized under Title IV of the HEA, 
including the following:
     Amending Sec.  668.164(g) to add the TEACH Grant program 
to the list of programs for which a student becomes ineligible when the 
student is no longer enrolled at the institution for the award year and 
to describe how TEACH Grant recipients may qualify for a late 
disbursement.
     Amending Sec.  668.183 to specify that a TEACH Grant that 
has been converted to a Federal Direct Unsubsidized Loan would not be 
included in calculating an institution's cohort default rate.
     Amending Sec.  673.5 to include the amount of any TEACH 
Grant in the types of funds that may be used to replace a student's 
expected family contribution (EFC).
     Adding new Sec.  686.2 to define the terms ``Academic year 
or its equivalent for elementary and secondary schools (Elementary or 
secondary academic year),'' ``Annual award,'' ``Scheduled award,'' 
``Elementary school,'' ``High-need field,'' ``Highly-qualified,'' 
``Numeric equivalent,'' ``Post-baccalaureate program,'' ``Retiree,'' 
``School serving low-income students (low-income school),'' ``Secondary 
school,'' ``Service Agreement,'' ``TEACH Grant-eligible institution,'' 
``TEACH Grant-eligible program,'' ``Teacher,'' and ``Teacher 
preparation program.''
     Adding new Sec.  686.3 to establish the duration of 
student eligibility for a TEACH Grant based on the maximum amount of 
grant funds available to students under section 420M(d)(1) and (2) of 
the HEA.
     Adding new Sec.  686.4 to give institutions the option to 
participate in the TEACH Grant program, to clarify that participation 
in the program is voluntary, and to describe the obligations of 
institutions if they cease to participate in the program.
     Adding new Sec.  686.5 to specify how an institution would 
treat correspondence courses for purposes of the TEACH Grant program.
     Adding new Sec.  686.6 to prohibit students from receiving 
TEACH Grant payments concurrently from more than one institution.
     Adding new Sec.  686.10 to describe the procedures that a 
student must follow when applying for a TEACH Grant, and, in 
particular, to require that a student submit a Free Application for 
Federal Student Aid (FAFSA), complete and sign a service agreement and 
promise to repay, and provide any additional information requested by 
the Secretary.
     Adding new Sec.  686.11 to establish student eligibility 
requirements for the TEACH Grant program.
     Adding new Sec.  686.12 to describe the agreement students 
must sign prior to receiving each TEACH Grant award, and to explain the 
service obligation that students must carry out for the TEACH Grant 
award not to convert to a Federal Direct Unsubsidized Loan.
     Adding new Sec.  686.20 to require a student to submit a 
valid Student Aid Report (SAR) or for the student's institution to 
receive an Institutional Student Information Record (ISIR) with an 
official EFC so that the institution can determine the appropriate 
amount of a student's TEACH Grant.
     Adding new Sec.  686.21 to provide that while a Scheduled 
Award for the TEACH Grant program is $4,000, students may receive 
lesser annual award amounts depending on their enrollment status and to 
clarify that a student's TEACH Grant award, combined with other 
estimated financial assistance, cannot exceed the cost of the student's 
attendance as determined by the institution.
     Adding new Sec. Sec.  686.22 and 685.25 to: (1) Describe 
how an institution calculates a TEACH Grant payment for a payment 
period for an eligible student depending on the academic calendar of 
the eligible program, the student's enrollment status, and the amount 
of the student's annual award; (2) establish the minimum payment for a 
payment period; (3) require institutions to define the term ``academic 
year'' for purposes of calculating payments for payment periods; and 
(4) allow institutions to use overlapping Scheduled Awards in a payment 
period.
     Adding new Sec.  686.23 to address how an institution 
calculates a TEACH Grant payment for an eligible student's payment 
period when the student is enrolled in a payment period that overlaps 
two award years.
     Adding new Sec.  686.24 to establish how an institution 
calculates a payment for an eligible student who transfers

[[Page 35473]]

from another postsecondary institution within the same award year.
     Adding new Sec.  686.31 to delineate what an institution 
must do to determine whether a student is eligible to receive a TEACH 
Grant.
     Adding new Sec.  686.32 to describe the initial, 
subsequent, and exit counseling that institutions must provide to each 
TEACH Grant recipient.
     Adding new Sec.  686.33 to allow institutions to pay a 
student a TEACH Grant at such times and in such installments that best 
meet the student's needs.
     Adding new Sec.  686.37 to describe the information 
pertaining to a student's TEACH Grant eligibility that an institution 
must submit to the Department and to establish submission deadlines for 
this information.
     Adding new Sec.  686.40 to define how and when a TEACH 
Grant recipient must contact the Department to document fulfillment of 
his or her service obligation or, if the service obligation has not 
been met, the intent to fulfill the service obligation.
     Adding new Sec.  686.41 to define the conditions under 
which a TEACH Grant recipient will be able to request a suspension of 
his or her service obligation for a specified amount of time.
     Adding new Sec.  686.42 to require the discharge of a 
grant recipient's service obligation if the recipient dies or becomes 
totally and permanently disabled, and to clarify that the four-year 
service obligation still would apply to a recipient who is in a 
conditional discharge period.
     Adding new Sec.  686.43 to describe the various conditions 
under which a TEACH Grant would be converted into a Federal Direct 
Unsubsidized Loan, with interest accruing from the date of each grant 
disbursement and which a TEACH Grant recipient would be required to 
pay.

Technical Corrections

    We are making minor technical changes, including the following, to 
correct errors that we identified during our review of the proposed 
regulations.

Program Participation Agreement (Sec.  668.14(f))

    We have revised Sec.  668.14(f) to correct inaccurate cross-
references. Specifically, Sec.  668.14(f) has been amended to cross-
reference paragraphs (g) and (h) of the section, rather than (h) and 
(i) of the section. We also have revised Sec.  668.14(f)(3) to cross-
reference paragraph (f), rather than paragraph (g), of the section.

Teacher Loan Forgiveness Program (Sec. Sec.  682.215 and 685.217)

    We have revised Sec. Sec.  682.215(c)(7)(ii) and 685.217(c)(7)(ii) 
to correct inaccurate citations for the Family and Medical Leave Act of 
1993 (FMLA). The correct citation for the FMLA is 29 U.S.C. 2601, et 
seq., not 19 U.S.C. 2654.

Analysis of Comments and Changes

    The regulations in this document were developed through negotiated 
rulemaking. Section 492 of the HEA requires that, before publishing any 
proposed regulations to implement programs under Title IV of the HEA, 
the Secretary must obtain public involvement in the development of the 
proposed regulations. After obtaining advice and recommendations, the 
Secretary must conduct a negotiated rulemaking process to develop the 
proposed regulations. All proposed regulations must conform to 
agreements resulting from the negotiated rulemaking process unless the 
Secretary reopens that process or explains any departure from the 
agreements to the negotiated rulemaking participants.
    These regulations were published in proposed form on March 21, 
2008, in conformance with the consensus of the negotiated rulemaking 
committee. Under the committee's protocols, consensus meant that no 
member of the committee dissented from the agreed-upon language. The 
Secretary invited comments on the proposed regulations by April 21, and 
in response to the Secretary's invitation, 132 parties submitted 
comments on the proposed regulations. An analysis of the comments and 
the changes in the regulations since publication of the NPRM follows.
    We group major issues according to subject, with appropriate 
sections of the regulations referenced in parentheses. We discuss other 
substantive issues under the sections of the regulations to which they 
pertain. Generally, we do not address minor, non-substantive changes.

General

    Comment: The Department received several general comments about the 
TEACH Grant program. Four commenters suggested that the program is 
inappropriately named and argued that the Department should change the 
name of the program to reflect the fact that it is, in their opinion, a 
loan forgiveness program rather than a grant program. Two commenters 
argued that the funds dedicated for the TEACH Grant program would 
better serve students if they were reallocated to the current Teacher 
Loan Forgiveness Program or to the Perkins Loan Program.
    The Department also received comments in support of the TEACH Grant 
program that did not address specific sections of the proposed 
regulations.
    Discussion: The name, purpose, and structure of the program are 
established by the HEA and cannot be changed by the Department. The 
Department is not authorized to reallocate funds Congress designates 
for the TEACH Grant program to another program.
    The Department is working to disseminate detailed information about 
the unique nature of the TEACH Grant program, including how TEACH 
Grants may, under certain circumstances, convert into Federal 
Unsubsidized Direct Loans, to institutions as well as to parents and 
students.
    Changes: None.

Eligible Programs (Sec.  668.8)

    Comment: One commenter requested clarification about the 
relationship between the definition of eligible program in Sec.  668.8 
and the definition of TEACH Grant-eligible program in 34 CFR 686.2(d). 
The commenter questioned whether it is appropriate to add, in Sec.  
668.8(h)(3), a cross-reference to the definition of TEACH Grant-
eligible program in 34 CFR 686.2(d). In addition, the commenter asked 
if programs that contribute to a student's ability to teach in a high-
need field should be included in the definition of eligible program 
under Sec.  668.8(h)(3)(i).
    Discussion: We agree that the connection between the definition of 
eligible program in Sec.  668.8 and the definition of TEACH Grant-
eligible program found in 34 CFR 686.2(d) needs clarification. For 
purposes of the TEACH Grant program, an educational program is an 
eligible program under Sec.  668.8 only if it qualifies as a TEACH 
Grant-eligible program in accordance with 34 CFR 686.2(d). Rather than 
amend Sec.  668.8 to restate the definitional requirements of a TEACH 
Grant-eligible program, we amended Sec.  668.8 simply to cross-
reference the definition in 34 CFR 686.2(d).
    A program that contributes to a student's ability to teach in a 
high-need field would be a TEACH Grant-eligible program if it is 
designed to prepare an individual to teach as a highly qualified 
teacher in a high-need field and leads to a baccalaureate or master's 
degree, or is a post-baccalaureate program of study.
    Changes: We amended Sec.  668.8(h) to clarify that an educational 
program qualifies as an eligible program for purposes of the TEACH 
Grant program only if it is a TEACH Grant-eligible

[[Page 35474]]

program in accordance with 34 CFR 686.2(d).

Treatment of Title IV grant and loan funds when a student withdraws 
(Sec.  668.22)

    Comment: One commenter questioned the placement of TEACH Grants in 
the listing of unearned grant funds returned in the event a student 
withdraws from an institution during a payment period. The commenter 
believed that TEACH Grants should be placed at the beginning of the 
order for returning grant funds and asked that that placement be 
reconsidered.
    Discussion: As reflected in the NPRM, the Department believes that 
TEACH Grants should not be at the beginning of the order for returning 
grant funds. Under the regulations, TEACH Grants will be returned after 
Federal Pell Grants, Academic Competitiveness Grants, National SMART 
Grants, and FSEOG program assistance. This return order is prescribed 
by section 484B(b)(3)(B)(iii) of the HEA.
    Changes: None.

Calculating and Applying Cohort Default Rates (Sec.  668.183)

    Comment: Several commenters supported Sec.  668.183, which provides 
that a TEACH Grant that has been converted to a Federal Direct 
Unsubsidized Loan is not included in the calculation of an 
institution's cohort default rate.
    Discussion: We appreciate the commenters' support.
    Changes: None.

Overaward (Sec.  673.5)

    Comment: One commenter supported the proposal that TEACH Grants be 
allowed to replace the EFC, believing that this approach fulfills the 
spirit of the legislation and will be helpful in making awards to 
students.
    Discussion: We appreciate the commenter's support.
    Changes: None.

Maximum Loan Amounts (Sec. Sec.  682.204 and 685.203)

    Comment: One commenter wrote to support the proposal to exclude a 
TEACH Grant that has been converted to a Federal Direct Unsubsidized 
Loan from a borrower's aggregate or annual loan limits in the Federal 
Family Education Loan (FFEL) and Federal Direct Loan Programs.
    Discussion: We appreciate the commenter's support.
    Changes: None.

Definitions (Sec.  686.2(d))

Agreement To Serve

    Comment: None.
    Discussion: The Department is changing the name of the agreement 
described in section 420N(b) of the HEA from ``service agreement'' to 
``agreement to serve'' to be more consistent with the statute.
    Change: We have amended Sec.  686.2(d) to change the name of the 
agreement under which a TEACH Grant recipient commits to meet the 
service obligation described in Sec.  686.12 from ``service agreement'' 
to ``agreement to serve.''

High-Need Field

    Comment: A large number of commenters suggested that library media 
specialist should be included in the list of high-need fields. They 
argued that all 50 States require that a school library media 
specialist have a State teaching certificate, that library media 
specialists are considered teachers and are responsible for developing 
curriculum and instructing students, and that there are significant 
shortages of library media specialists across the country. Several 
commenters contended that early childhood education should be 
considered a high-need field because of the shortage of baccalaureate-
degree-holding early childhood education teachers and the requirement 
that Head Start teachers have a bachelor's degree in early childhood 
education by 2013.
    Discussion: Under certain circumstances, library media specialist 
and early childhood education qualify as high-need fields and a grant 
recipient could fulfill the service obligation associated with receipt 
of a TEACH Grant by teaching in these fields. As specified in Sec.  
686.12(b), for each TEACH Grant-eligible program for which the student 
received TEACH Grant funds, the grant recipient must fulfill a service 
obligation by serving as a full-time 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 in a 
low-income school, as a highly qualified teacher, and in a high-need 
field in the majority of classes taught during each elementary and 
secondary academic year.
    The definition of high-need field in Sec.  686.2(d) reflects 
section 420N(b) of the HEA which specifically designates several fields 
as high-need and provides for the inclusion of other fields that are 
documented as high-need by the Federal Government, a State government 
or a local educational agency (LEA), and approved by the Secretary. The 
regulations explain that the additional high-need fields are those 
listed in the Department's annual Teacher Shortage Area Nationwide 
Listing (Nationwide List), which is available on the Department of 
Education's Web site at https://www.ed.gov/about/offices/list/ope/pol/
tsa.pdf. The Nationwide List is based on information submitted to the 
Department by the States, and inclusion of a field on the Nationwide 
List indicates approval by the Department of Education. Some States 
have identified early childhood education and library media specialist 
as shortage areas in the Nationwide List.
    For purposes of the TEACH Grant program, a teacher is someone who 
provides direct classroom teaching or classroom-type teaching in a non-
classroom setting in an elementary or secondary school. An elementary 
or secondary school is a nonprofit institutional day or residential 
school, including a public elementary or secondary charter school, that 
provides elementary or secondary education, as determined under State 
law. The individual must be teaching the majority of classes in the 
high-need field. In the case of service in early childhood education, 
to meet the criterion of being a highly qualified teacher the 
individual would need to be certified by the State in early childhood 
education. To meet the criterion of teaching in an elementary school, 
the service would need to take place in an elementary school and the 
State would need to consider early childhood education a component of 
the State's elementary school education system and have designated 
early childhood education as a high-need field.
    To meet the criterion of ``highly qualified,'' a library media 
specialist would need to be certified by the State as a library media 
specialist. To meet the criterion of ``teacher,'' the library media 
specialist would need to be performing direct classroom teaching or 
classroom-type teaching in a non-classroom setting for a majority of 
time in an elementary or secondary school. In addition, the State would 
have to designate library media specialist as a high-need field. In all 
cases, the service would need to be performed in a low-income school.
    Changes: None.
    Comment: A couple of commenters inquired whether elementary 
education could be included as a high-need field. One commenter 
requested that we provide specific information about how elementary 
school teachers could demonstrate that they are teaching in a high-need 
field.

[[Page 35475]]

    Discussion: As described in the discussion of library media 
specialist and early childhood education, elementary education could be 
a high-need field if it is designated as a high-need field by the State 
in which the recipient teaches.
    There are other limited circumstances under which a grant recipient 
can satisfy the service obligation by serving as an elementary school 
teacher including: (1) Teaching the majority of his or her courses in a 
high-need field, such as math, science, or a foreign language; (2) 
teaching in a foreign language immersion program; (3) serving as a 
reading specialist, a special education teacher, or a bilingual 
education teacher, or teaching English language acquisition; or (4) 
teaching in a low-income school in a State that has designated 
elementary education as a high-need field.
    Changes: None.
    Comment: A couple of commenters asked for clarification of the 
terms ``bilingual education'' and ``English language acquisition.'' One 
commenter questioned whether bilingual education includes immersion 
classrooms.
    Discussion: The National Clearinghouse for English Language 
Acquisition (NCELA) (https://www.ncela.gwu.edu), an online resource 
supported by the Department of Education's Office of English Language 
Acquisition, provides general definitions of these terms. Language 
acquisition is the process of acquiring a first or second language. 
Bilingual education is an educational program in which two languages 
are used to provide content matter instruction. In foreign language 
immersion programs the foreign language is the vehicle for content 
instruction and is not the subject of instruction. Therefore, bilingual 
education does not include foreign language immersion programs.
    Changes: We have added definitions of the terms ``bilingual 
education'' and ``English language acquisition'' to Sec.  686.2(d). 
These definitions are taken from the NCELA.
    Comment: One commenter asked the Department to specify what major 
would lead to teaching English acquisition and English as a Second 
Language and who would make this determination.
    Discussion: The Department does not have the authority or expertise 
to specify which academic degrees would prepare an individual to teach 
in these, or any other, fields since that is an academic decision that 
rests with the institution.
    Changes: None.

    Comment: One commenter sought clarification of whether a foreign 
language is a high-need field and suggested that a K-12 foreign 
language immersion program should be considered part of the high-need 
foreign language field listed in the statute and regulations.
    Discussion: All foreign languages are high-need fields for purposes 
of the TEACH Grant program. We agree with the commenter that teaching 
in a foreign language immersion program would meet the requirement for 
teaching in a high-need field.
    Changes: None.

Highly-Qualified

    Comment: A couple of commenters requested that the Department 
provide the specific requirements that must be met to satisfy the 
criterion for being a highly-qualified teacher rather than merely 
referencing the relevant statutes.
    Discussion: The requirements for being designated ``highly 
qualified'' are very complex and differ for the various states. The 
requirement that teachers be highly-qualified applies to all public 
elementary or secondary school teachers employed by a LEA who teach a 
core academic subject. Special education teachers who teach core 
academic subjects are included in this requirement. In general, 
``highly qualified'' means that the teacher--
    (1) Has obtained full State certification as a teacher or passed 
the State teacher licensing examination, holds a license to teach in 
the State, and has not had certification or licensure requirements 
waived on an emergency, temporary, or provisional basis (special 
education teachers must be certified in special education);
    (2) Holds a minimum of a bachelor's degree; and
    (3) Has demonstrated subject-matter competency in each of the 
academic subjects in which the teacher teaches, in a manner determined 
by the State and in compliance with section 9101(23) of the Elementary 
and Secondary Education Act of 1965, as amended (ESEA).
    The statutory definition of ``highly qualified'' includes 
additional elements that apply differently to veteran teachers and new 
teachers, and to elementary, middle, and secondary school teachers. The 
complete statutory definition of a ``highly qualified'' teacher is in 
section 9101(23) of the ESEA and in section 602(10) of the Individuals 
With Disabilities Education Act. The Department's regulations at 34 CFR 
200.56 further define ``highly qualified teacher.'' Among other things, 
34 CFR 200.56 clarifies when teachers who pursue State certification 
through an alternative-route program may be considered fully certified 
while they participate in that program. More guidance on the criterion 
for being a highly qualified teacher is available at https://www.ed.gov/
teachers/nclbguide/improve-quality.html.
    Changes: None.

Post-Baccalaureate Program

    Comment: A few commenters raised concerns about the phrase at the 
end of paragraph (2) of the definition of post-baccalaureate program 
that they believe makes a post-baccalaureate program offered by an 
institution that also has an undergraduate teacher preparation program 
ineligible for the TEACH Grant program. They suggested that the post-
baccalaureate program and an undergraduate teacher education program 
offered by the same institution should both be eligible programs for 
TEACH Grant purposes. One of these commenters noted that some 
institutions require their undergraduate education majors to complete a 
fifth year during which they take coursework necessary to earn a 
teaching credential.
    Discussion: The definition of post-baccalaureate program in Sec.  
686.2(d) is from section 420L(2) of the HEA. That definition limits the 
TEACH Grant eligibility of post-baccalaureate programs to those offered 
by institutions that do not have an undergraduate teacher preparation 
program. In the case of an institution that offers both an 
undergraduate teacher preparation program and a post-baccalaureate 
program, the institution would be eligible, and it could designate its 
teacher preparation program as a TEACH Grant-eligible program. We 
understand that some institutions' teacher preparation programs require 
students to complete a post-baccalaureate program after earning a 
baccalaureate degree in teacher education. However, the statute does 
not permit these post-baccalaureate programs to be eligible for the 
TEACH Grant program.
    Changes: None.

TEACH Grant-Eligible Institution

    Comment: One commenter questioned the exclusion of institutions 
that fail to meet financial responsibility standards but that qualify 
to participate in all of the other Title IV, HEA programs under 
alternate standards from participation in the TEACH Grant program.
    Discussion: We agree with the commenter that the same standards 
should apply for an institution to qualify to participate in the TEACH 
Grant program as for all the other Title

[[Page 35476]]

IV programs. Using the same standards will result in consistent 
treatment across all programs and reduce the administrative burden on 
both institutions and the Department.
    Changes: We have amended the definition of TEACH Grant-eligible 
institution to allow institutions that do not meet financial 
responsibility standards established in 34 CFR part 668, subpart L to 
participate in the TEACH Grant program by qualifying under an 
alternative standard in 34 CFR 668.175.
    Comment: One commenter thanked us for including in the definition 
of TEACH Grant-eligible institution institutions whose teacher 
preparation programs are approved by a State, include extensive pre-
service clinical experience, and provide pedagogical coursework or the 
assistance in the provision of such coursework.
    Discussion: We appreciate the commenter's support.
    Changes: None.
    Comment: One commenter asked that we clarify what constitutes 
``high-quality'' teacher preparation programs and what ``extensive pre-
service clinical experience'' entails.
    Discussion: The definition of TEACH Grant-eligible institution in 
Sec.  686.2(d) contains four components that constitute a ``high-
quality'' teacher preparation program. The components are: (1) Approval 
by a cognizant authority (either accreditation by a specialized 
accrediting agency or State approval); (2) extensive pre-service 
clinical experience; (3) direct provision of pedagogical coursework or 
assistance in providing such coursework; and (4) provision of 
supervision and support services to teachers, or assistance in such 
provision. Institutions whose programs are accredited by one of the 
specialized accrediting agencies recognized by the Secretary for the 
accreditation of professional teacher education programs, which are 
listed on the Department's Web site at https://www.ed.gov/admins/finaid/
accred/accreditation_pg8.html#ed, are considered to meet the 
requirements related to pre-service clinical experience and pedagogical 
coursework. While we did not specifically discuss a minimum length of 
time for pre-service clinical experience during negotiated rulemaking, 
a standard will be necessary from an operational standpoint so that we 
can determine whether or not an institution whose teacher preparation 
program is not accredited by a specialized accrediting agency meets 
this requirement. Accordingly, we reviewed the requirements of all the 
States and determined that a majority of States require at least 10 
weeks of full-time pre-service clinical experience, while some require 
significantly less and a few require more. In addition, in testimony 
during a public hearing on the TEACH Grant program, the American 
Association of Colleges for Teacher Education recommended 10 weeks of 
full-time pre-service clinical experience as a minimum. Therefore, we 
have adopted 10 weeks of full-time pre-service clinical experience, or 
its equivalent, as the regulatory standard. We considered that a 
program might be designed so that students would complete their 
clinical experience on a part-time basis and will allow for the 
completion of the 10 weeks of full-time pre-service clinical experience 
on a part-time basis.
    Changes: We have revised paragraph (1)(i)(B) of the definition of 
TEACH Grant-eligible program in Sec.  686.2(d) to specify that a 
teacher preparation program that is approved by a State must provide a 
minimum of 10 weeks of full-time pre-service clinical experience, or 
its equivalent.
    Comment: One commenter asked whether the reference to ``teachers'' 
in paragraph (1)(ii) of the definition of TEACH Grant-eligible 
institution refers to an employed teacher or a student teacher.
    Discussion: The phrase ``provides supervision and support services 
to teachers, or assists in the provision of services to teachers'' 
refers to employed teachers, not to student teachers. Faculty and other 
professional personnel at institutions with teacher preparation 
programs are expected to share their knowledge with working teachers as 
part of their education role.
    Changes: None.
    Comment: One commenter wondered what is meant in paragraph 
(1)(ii)(B) by the term ``novice'' in the description of the types of 
supervision and support services an institution might provide to 
teachers. The same commenter asked for further explanation and examples 
of ways an institution might meet the supervision and support services 
requirement.
    Discussion: In general, a novice is an individual who is new to a 
field or activity. In the case of teachers, a novice is normally 
considered to be one who is involved in the first, second, or third 
year of teaching.
    The regulations include a few illustrative examples of the types of 
supervision and support services an institution might provide to 
teachers. We believe that an exclusive list would be too restrictive on 
institutions. We expect that institutions with teacher preparation 
programs will be able to identify other types of services they provide 
that satisfy the requirement based on the illustrative examples.
    Changes: None.
    Comment: One commenter asked for more discussion and examples of 
how a community college can become a TEACH Grant-eligible institution. 
In particular, the individual wondered whether the community college 
must have an articulation agreement with each four-year institution to 
which a student would transfer.
    Discussion: In order to be a TEACH Grant-eligible institution, a 
community college must have an agreement with at least one four-year 
institution. The agreement need not be a formal articulation agreement. 
However, the agreement must demonstrate (1) that the two-year program 
offered by the community college is acceptable for full credit in that 
institution's baccalaureate teacher education program, or (2) that the 
two-year program is acceptable for full credit in a baccalaureate 
degree program in a high-need field at a TEACH Grant-eligible 
institution. An agreement that would demonstrate that the two-year 
program is acceptable for full credit into a baccalaureate degree in 
the high-need field of math, for example, would likely list several 
courses that would meet the four-year institution's general education 
requirements, some courses that could be electives, and a few lower-
level math courses required for the major. Our expectation is that a 
student who follows a pathway established through an agreement would 
not have to take additional credits beyond the minimum required for 
graduation from the four-year institution.
    The agreement is used to establish institutional eligibility. It is 
not a requirement that each student enrolled in the two-year program 
attend the four-year institution with which the community college has 
the agreement. A community college does not have to have more than one 
agreement to establish its eligibility.
    Changes: None.

TEACH Grant-Eligible Program

    Comment: A couple of commenters expressed their appreciation that 
the regulations permit institutions to define which programs will be 
eligible for the TEACH Grant.
    Discussion: We appreciate the support.
    Changes: None.
    Comment: One commenter asked that we explain the criterion of 
``fully-qualified'' teacher in the context of preparation in an 
eligible program.

[[Page 35477]]

    Discussion: We agree with the commenter that the definition of 
TEACH Grant-eligible program should make it clear that the program 
should be designed to prepare an individual to teach as a highly-
qualified teacher. Preparation of highly-qualified teachers is a key 
component of an eligible program, but we also recognize that, given the 
various pathways a student might follow to gain the knowledge needed to 
become a highly-qualified teacher, the student may need to complete 
more than one program. For example, a student may earn a baccalaureate 
degree in a high-need field, such as mathematics, and then enroll in a 
post-baccalaureate program for the courses needed to receive a 
professional certification or licensing credential. Subject area 
content knowledge and certification are both components of the 
definition of ``highly-qualified'' teacher and, in the situation just 
described, a single program would not provide both. With this 
clarification, we agree that the definition of TEACH Grant-eligible 
program should include a reference to the preparation of a highly-
qualified teacher.
    Changes: We have amended the definition of a TEACH Grant-eligible 
program in Sec.  686.2(d) to clarify that a TEACH Grant-eligible 
program must be designed to prepare an individual to teach as a highly-
qualified teacher.
    Comment: Several commenters sought guidance on the amount of 
latitude institutions have in designating eligible programs. Some 
wondered if an institution could designate only its master's degree 
programs, and not its undergraduate programs, or only its teacher 
preparation programs or post-baccalaureate programs as TEACH Grant-
eligible.
    Discussion: In making a determination of which programs to 
designate as TEACH Grant-eligible, an institution may differentiate 
between its master's degree programs and its undergraduate programs, 
making only its master's degree programs TEACH Grant-eligible. An 
institution may also choose to make only its teacher preparation 
programs TEACH Grant-eligible, and not include any programs in high-
need fields.
    Changes: None.
    Comment: Several commenters asked whether institutions could limit 
participation in the TEACH Grant program to upper level undergraduate 
students. One commenter suggested that institutions should have the 
option to determine whether the first two years of a four-year program 
are part of an eligible program.
    Discussion: An institution may limit participation in the TEACH 
Grant program to students who have formally declared a major or who 
have been formally admitted to the teacher preparation program. In such 
cases, the TEACH Grant-eligible program could effectively involve only 
upper-level undergraduate students and the eligible program would not 
include the first two years of a four-year program. An institution 
could also determine that the first two years are not part of the TEACH 
Grant-eligible program. However, if the institution designates a 
program as TEACH Grant-eligible it cannot further discriminate among 
eligible students in that program. If, for example, an institution 
designates a program as TEACH Grant-eligible and that program begins in 
the freshman year, the institution may not limit TEACH Grant 
participation to upper-level undergraduates in the program.
    Changes: None.
    Comment: One commenter asked whether a two-year institution could 
restrict TEACH Grant-eligibility to programs with some relationship to 
teacher preparation and not include programs that transfer into four-
year baccalaureate programs that include high-need majors.
    Discussion: An institution may designate only certain programs as 
TEACH Grant-eligible and not designate others, even though they may 
prepare a student to teach in a high-need field.
    Changes: None.
    Comment: In questioning whether an institution could require that a 
student must have declared an appropriate major, or have been accepted 
into a teacher preparation program, one commenter asked whether the 
practice would cross the line between program eligibility and student 
eligibility.
    Discussion: Program eligibility--where the institution may 
identify, within the parameters of the regulations, the scope of 
institutional programs that are TEACH Grant-eligible--and student 
eligibility--where the institution must adhere to the eligibility 
criteria identified in the regulations--are closely intertwined in the 
TEACH Grant program and there are instances, such as the situation the 
commenter describes, where the line between them is crossed. It is 
important to note that a program might be defined differently for 
general Title IV purposes and for TEACH Grant purposes with the 
consequence that, for some period of time, a student could receive 
financial assistance from other Title IV programs, but would not 
qualify for a TEACH Grant. Ultimately, it is up to the institution to 
decide, based on regulatory requirements, what programs are TEACH 
Grant-eligible and when a student is considered to be accepted into a 
TEACH Grant-eligible program.
    Changes: None.
    Comment: One commenter asked whether an institution can determine 
that only some of the programs for which it currently awards other 
Title IV aid are also eligible for TEACH Grant purposes, even if some 
programs it does not wish to make TEACH Grant-eligible meet the 
regulatory definition.
    Discussion: The institution has that discretion.
    Changes: None.
    Comment: Based on a concern that students will apply for and accept 
the TEACH Grant as a way of obtaining more loan funds with no intention 
of fulfilling the Agreement to Serve (ATS), one commenter asked the 
Secretary to provide more guidance, similar to the list of acceptable 
Classification of Instructional Programs (CIP) codes in the National 
SMART Grant program, for students to determine which programs are TEACH 
Grant-eligible.
    Discussion: We recognize that institutions may not be able to 
control the type of behavior the commenter describes in all instances. 
Although an institution may limit the programs it designates as TEACH 
Grant-eligible, an institution can never know with certainty whether a 
student truly intends to fulfill his or her service obligation. Since 
designation of TEACH Grant-eligible programs is an institutional 
decision, we do not plan to provide more specific guidance or a list of 
CIP codes.
    Changes: None.
    Comment: One commenter asked if, prior to awarding a TEACH Grant, 
an institution could require that a student submit a plan to the 
institution describing the student's career goal and intended academic 
plan to that goal.
    Discussion: An institution may require a student to submit a plan 
such as the commenter describes. This may be particularly helpful in 
situations where the student is enrolled in a program that will not, by 
itself, enable the student to begin teaching as a highly-qualified 
teacher in a high-need field. However, the plan by itself would not 
establish a student's eligibility for a TEACH Grant. A student must be 
enrolled in a TEACH Grant-eligible program to receive a TEACH Grant.
    Changes: None.
    Comment: A few commenters wondered whether a program that prepares 
a student to teach in a high-need field would have to be in the high-
need field in which an individual plans to teach in meeting the service 
obligation, or if it could contribute significantly to the TEACH Grant

[[Page 35478]]

recipient's knowledge and instructional capacity in a high-need field. 
One commenter asked whether a master's degree program that is not a 
teacher preparation program would need to result in a degree in a high-
need field to be considered eligible.
    Discussion: An institution has the authority to determine which of 
its programs meet the requirements to be TEACH Grant-eligible and may 
designate any program that contributes in any way to a student's 
preparation to teach in a high-need field as a TEACH Grant-eligible 
program. This approach would allow, for example, an institution to 
designate its Masters in Business Administration (MBA) Program as a 
TEACH Grant-eligible program that will prepare a student to teach in 
the high-need field of mathematics, if it determines that the content 
of its MBA program would be good preparation for teaching mathematics.
    Changes: None.
    Comment: One commenter asked whether an institution could consider 
as TEACH Grant-eligible a two-year program that appears unrelated to a 
high-need field but that will transfer fully into a four-year TEACH 
Grant-eligible program.
    Discussion: We believe that the institution would have a basis on 
which to define such a program as TEACH Grant-eligible.
    Changes: None.
    Comment: One commenter inquired whether a two-year school could 
offer a TEACH Grant-eligible post-baccalaureate program.
    Discussion: These regulations do not restrict the authority of an 
institution of higher education to offer a post-baccalaureate program. 
If a community college offers such a program, the community college may 
use this as the means of establishing its institutional eligibility for 
the TEACH Grant program and would not, therefore, need to enter into an 
agreement with a four-year institution to establish eligibility.
    Changes: None.
    Comment: One commenter asked whether a student who returns to the 
institution only for teacher certification courses would be eligible 
for a grant.
    Discussion: A student must be enrolled in a TEACH Grant-eligible 
program, which could be either a post-baccalaureate program of study or 
a master's degree program assuming the student already has a 
baccalaureate degree. If the student is merely taking courses he or she 
needs for certification, but is not enrolled in a TEACH Grant-eligible 
program, then the student would not be eligible for a TEACH Grant.
    Changes: None.
    Comment: One commenter asked whether a current teacher who decides 
to pursue a master's degree in a field that would not result in that 
teacher adding a certified area to his or her teaching credential would 
be considered to be enrolled in a TEACH Grant-eligible program and, if 
so, if the service performed on the basis of the individual's 
undergraduate degree could be used to fulfill the teaching obligation 
associated with the TEACH Grant for the master's degree.
    Discussion: An institution designates which of its programs are 
TEACH Grant-eligible. As long as the student is enrolled in a TEACH 
Grant-eligible program that student could receive a TEACH Grant. Prior 
experience in the field will not strip a student of his or her 
eligibility. However, the teaching service performed prior to 
enrollment in the master's degree program cannot be used to meet the 
service obligation associated with the TEACH Grant. Full-Time teaching 
service while attending school to obtain a master's degree would count 
toward the service obligation for any TEACH Grants that were received 
for an undergraduate or post-baccalaureate program. The teaching 
service performed while the student is enrolled may not be counted 
against the service obligation for the program in which the student is 
enrolled because the statute specifies that the student must teach 
``after completing the course of study for which the applicant received 
a TEACH Grant.''
    Changes: None.
    Comment: One commenter asked whether a four-year baccalaureate 
program that does not include an education component could be 
considered TEACH Grant-eligible if a student is able to transfer out of 
it after two years, prior to declaring a major, into a teacher 
preparation program at the same institution or at another institution 
with which the student's first institution has an agreement.
    Discussion: The comment addresses institutional eligibility and 
program eligibility. In regard to institutional eligibility, an 
institution that has a teacher preparation program would not need to 
enter into an agreement with another institution to be a TEACH Grant-
eligible institution. The institution could establish eligibility on 
the basis of its teacher preparation program, assuming that program 
meets the requirements contained in paragraph (1) of the definition of 
TEACH Grant-eligible institution in Sec.  686.2(d).
    In regard to program eligibility, it is not a requirement that a 
program include a teacher education component to be designated a TEACH 
Grant-eligible program. An institution may designate a program as TEACH 
Grant-eligible if it prepares an individual to teach as a highly-
qualified teacher in a high-need field.
    In this example, if the institution has designated both its program 
that does not include a teacher education component and its teacher 
preparation program as TEACH Grant-eligible, and the student is 
admitted to its teacher preparation program in the third year of 
undergraduate study, then the student would be eligible for a TEACH 
Grant for a total of four years. Since both of the programs in this 
example are TEACH Grant-eligible, the student could receive a TEACH 
Grant for each year of enrollment in the baccalaureate program without 
the education component and for each year of enrollment in the program 
with the teacher education component.
    Changes: None.

Teacher and Full-Time Teacher

    Comment: One commenter asked what a substitute teacher would need 
to do to meet the requirement of teaching full-time and other aspects 
of the service obligation.
    Discussion: A substitute teacher would need to satisfy the same 
requirements as a regular teacher as described in Sec.  686.12(b)(1), 
(2), and (3). The substitute teaching service must be in a low-income 
school and the substitute must teach a majority of courses in a high-
need field, as a highly-qualified teacher, for it to count toward 
meeting the service obligation. The substitute teacher must teach 
enough to meet the standard used by the State in defining full-time 
employment as a teacher. He or she could satisfy the requirement of 
teaching full-time by teaching in more than one low-income school and 
demonstrating that the combined teaching service was the equivalent of 
full-time. The substitute teacher would need to provide documentation 
as provided in Sec.  686.40.
    Changes: None.
    Comment: One commenter noted that special education teachers and 
reading specialists often serve other teachers as a resource or as a 
literacy coach and inquired whether such individuals would be 
considered teachers for purposes of fulfilling the service obligation.
    Discussion: The definition of ``teacher'' specifically includes 
special education teachers and reading specialists. Service performed 
by special education teachers and reading specialists, such as serving 
as a literacy

[[Page 35479]]

coach or resource to another teacher, either in the classroom or in a 
classroom-like setting, meets the definition of teacher. In order to 
meet the requirements of the service obligation, special education 
teachers and reading specialists must spend the majority of time 
teaching in a classroom or classroom-like setting, though they may also 
serve as a resource for other teachers.
    Changes: None.

Duration of Student Eligibility (Sec.  686.3)

    Comment: One commenter asked whether a student who already has 
earned a baccalaureate degree in a non-TEACH Grant-eligible program 
could be considered eligible for a TEACH Grant if the student enrolled 
in a TEACH Grant-eligible baccalaureate degree program, since this 
would be that student's first such baccalaureate degree. The commenter 
asked the same question about post-baccalaureate programs.
    Discussion: Section 420M(d)(1) of the HEA provides that a student 
may receive grants for the period required for the completion of the 
first undergraduate or post-baccalaureate course of study. In reviewing 
proposed Sec.  686.3, we have determined that Sec.  686.3 could suggest 
that a student who already has a baccalaureate degree in a non-TEACH 
Grant-eligible program would be eligible for a TEACH Grant if the 
student enrolled in a TEACH Grant-eligible baccalaureate degree 
program. However, that is not what we intended so we have clarified the 
regulations. An undergraduate student can get a TEACH Grant only for 
their first baccalaureate degree.
    Post-baccalaureate programs are by definition TEACH Grant-eligible. 
A student can get a TEACH Grant for completion of only one post-
baccalaureate program.
    Changes: We amended Sec.  686.3(a) to clarify that a student who 
already has completed a baccalaureate or post-baccalaureate program of 
study and has enrolled in a TEACH Grant-eligible baccalaureate or post-
baccalaureate program of study will not be able to receive a TEACH 
Grant.
    Comment: A commenter asked whether a student who has completed the 
requirements for teacher certification but elects to remain enrolled in 
the institution would continue to be eligible to receive TEACH Grants.
    Discussion: If a student has completed the requirements for teacher 
certification but remains enrolled in the institution, the student's 
eligibility for further TEACH Grants would depend on whether the 
student is still considered enrolled in his or her TEACH Grant-eligible 
program. If the student completed the requirements for the TEACH Grant-
eligible program's degree or certificate, the student would no longer 
be eligible.
    Changes: None.

Institutional Participation (Sec.  686.4)

    Comment: One commenter expressed appreciation that participation in 
the TEACH Grant program is optional for institutions.
    Discussion: We appreciate the support.
    Changes: None.
    Comment: One commenter suggested that the regulations should 
provide that if an institution ceases to participate in the TEACH Grant 
program, the TEACH Grant recipients at that institution would not be 
required to repay any TEACH Grant funds they received because it is the 
institution, not the student, that has withdrawn from the program.
    Discussion: Whether or not the institution continues to participate 
in the TEACH Grant program, a grant recipient is responsible for 
fulfilling the terms of the ATS that he or she signed. The student 
would still be able to continue a program of study to become a teacher, 
even if the institution no longer participated in the TEACH Grant 
Program, though the student would not receive additional TEACH Grants 
for that program. In addition, the student would also have the option 
to transfer to another institution to get a teaching credential. If the 
recipient fails to meet the requirements of the ATS, the TEACH Grants 
will convert to a Federal Direct Unsubsidized Loan.
    Changes: None.

Application (Sec.  686.10)

    Comment: One commenter supported the Department's use of the FAFSA 
as the application for a TEACH Grant.
    Discussion: We appreciate the commenter's support.
    Changes: None.

Eligibility To Receive a Grant (Sec.  686.11)

    Comment: Several comments were received on how admissions tests are 
treated as part of student eligibility for a TEACH Grant. One commenter 
asked whether an institution must first determine whether a student 
achieved a score above the 75th percentile on at least one of the 
batteries of a standardized admission test before determining TEACH 
Grant eligibility based on the student's grade point average (GPA). One 
commenter requested restricting admission test scores by educational 
level, while another commenter supported the approach in the proposed 
regulations regarding how admission test scores are considered as part 
of student eligibility. Another commenter wanted to know how to 
determine a home-schooled student's eligibility if the institution does 
not require an admissions test. Another commenter asked whether a test 
used for admission is acceptable for the 75th percentile determination 
even if it is also used as a placement test. Clarification on which 
nationally-normed tests qualify a student for a TEACH Grant and how a 
test is determined to be nationally-normed was also requested by a 
commenter. Finally, one commenter asked whether, in lieu of test score 
submissions by the testing entity, a student may submit documentation 
of test scores directly to the financial aid office.
    Discussion: Section 420N(a)(2)(A)(ii)(II) of the HEA requires an 
institution to determine whether the student displayed high academic 
aptitude by scoring above the 75th percentile of scores on at least one 
of the batteries from a nationally-normed standardized admissions test 
and does not restrict the use of admission test scores by undergraduate 
or graduate educational level. Because the test scores are intended to 
be a measure of high academic aptitude without being associated with a 
particular educational level, the Department does not believe that 
restricting qualification for a TEACH Grant by test score by 
educational level is appropriate. If the student did not achieve a 
qualifying test score, an otherwise eligible student may qualify based 
on the applicable GPA requirements.
    The student's qualifying test score does not need to be used by the 
institution as an admissions test at that school. In addition, a 
student may qualify based on a score on an admissions test that doubles 
as a placement test at the institution. While a home-schooled student 
may qualify by scoring above the 75th percentile on a standardized 
admissions test, he or she may also qualify based on his or her high 
school GPA as documented by the student's parent or other cognizant 
authority. Any student who does not qualify by test score or GPA is not 
eligible for a TEACH Grant.
    All nationally-normed tests are not eligible to qualify a student--
only nationally-normed admission tests qualify. An admissions test is 
considered to be nationally-normed if the norming sample is nationally-
representative, that is, individual student test performance can be

[[Page 35480]]

compared to a nationally-drawn peer sample. For documentation purposes, 
a student may submit qualifying test scores directly to the financial 
aid office in lieu of having the testing entity send the test scores to 
the institution. However, if the institution has reason to believe that 
the test scores submitted directly by the student are incomplete or 
inaccurate, the institution must request test scores from the testing 
entity.
    Changes: None.
    Comment: Three commenters expressed concern about the GPA 
requirement to receive a TEACH Grant. One believed that the required 
3.25 GPA is too high. Another commenter suggested that students who 
qualified for a TEACH Grant by meeting the admission test option should 
still have to meet the 3.25 cumulative GPA, or numeric equivalent, 
through the most recently completed payment period that is required of 
students who did not qualify under the admission test option. Another 
commenter recommended that GPA be checked once per year, not once each 
term.
    Discussion: Under section 420N(a)(2)(A)(ii)(I) of the HEA, 
achieving a 3.25 GPA on a 4.0 scale allows an otherwise eligible 
student who did not qualify via an undergraduate, postbaccalaureate, or 
graduate school admissions test score to qualify for a TEACH Grant. The 
statute does not require students who qualified using the admission 
test score option to maintain a 3.25 GPA in the eligible program, but 
does require that a student who qualified using the 3.25 cumulative GPA 
option to continue to maintain a GPA of at least 3.25 on a 4.0 scale. 
To document that such a student continues to meet the 3.25 GPA 
eligibility requirement, Sec.  686.11(a)(1)(v) stipulates that the 
institution must check the student's GPA for the most recently 
completed payment period by the institution prior to disbursement.
    Changes: None.
    Comment: One commenter was concerned that the academic requirements 
to receive a TEACH Grant--qualifying test scores or GPA--would impose 
an additional burden on financial aid officers.
    Discussion: Section 420N(a)(2)(A)(ii)(I) and (II) of the HEA 
established the qualifying admission test scores and GPA requirements 
for receiving a TEACH Grant that were reflected in the proposed 
regulations. Institutions are required to implement these requirements. 
The regulations do not specifically stipulate, however, that financial 
aid officers make the academic determinations. Rather, institutions 
should follow their own institutional policies and procedures to ensure 
that these student eligibility requirements are properly administered.
    Changes: None.
    Comment: One commenter requested clarification on the methods by 
which a former teacher may qualify for a TEACH Grant.
    Discussion: Under Sec.  686.11(b), a former teacher is eligible for 
a TEACH Grant for a master's degree program or an alternative 
certification program as part of a master's degree program. In 
addition, a former teacher can qualify under Sec.  686.11(a) for an 
eligible undergraduate, post-baccalaureate, or graduate degree program 
if he or she meets the academic requirements.
    Changes: None.

Agreement To Serve (Sec.  686.12)

    Comment: Many commenters were concerned that the basic elements of 
the ATS would be difficult for most TEACH Grant recipients to satisfy, 
thereby increasing the probability that the majority of TEACH Grants 
would convert to Federal Direct Unsubsidized Loans. The commenters 
stated that it was not appropriate to expect students, especially lower 
classmen who either have not or cannot declare a major, to make a four-
year commitment to serve in a low-income school as a highly-qualified 
full-time teacher in a high-need field at such a young age. The 
commenters cited the frequency with which students change majors or 
career goals upon exposure to coursework or, even later, after exposure 
to teaching experience. One commenter suggested that the Department 
include, in the ATS, the fact that the Congressional Budget Office has 
projected that 80 percent of TEACH Grants will convert to Federal 
Direct Unsubsidized Loans.
    Discussion: The teaching service requirements contained in the ATS 
and described in Sec.  686.12(b) are mandated by section 420N(b) and 
(c) of the HEA. In order to receive a TEACH Grant, the HEA requires 
that each TEACH Grant recipient agree to serve as a full-time teacher 
for a total of not less than four academic years within eight years of 
completing the course of study for which a TEACH Grant was received in 
a low-income school as a highly-qualified teacher in a high-need field. 
The HEA further requires that a grant recipient document each year of 
his or her teaching service in the form of a certification by the chief 
administrative officer of the school in which the recipient is 
teaching. Lastly, the HEA provides that if the recipient fails or 
refuses to carry out the service obligation, any TEACH Grants received 
are treated as a Federal Direct Unsubsidized Loan with interest 
accruing from the date that each TEACH Grant was disbursed. While we 
understand the commenters' concerns, the Secretary does not have the 
authority to change statutory requirements. We note, however, that the 
ATS that a TEACH Grant recipient must sign each year before receiving a 
TEACH Grant contains all of the terms and conditions a recipient must 
meet in order to prevent the grant from converting to a Federal Direct 
Unsubsidized Loan. Finally, the Secretary does not see the merit of 
including Congressional Budget Office projections in the ATS.
    Changes: None.
    Comment: Many commenters expressed concern that the regulations in 
Sec.  686.12(b)(1) do not provide for partial fulfillment of a TEACH 
Grant reci