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IFAP
FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)667.13
AsOfDate: 12/31/95

From the Compilation of Regulations through 12/31/95.

Sec. 667.13 Approval of funding application.

(a) Before standards are established. The Secretary

approves a State's plan and budget submitted before the State
establishes review standards if--

(1) The plan provides a reasonable basis, and adequate

budget justification, for carrying out the activities described in
Sec. 667.12(b)(1);

(2) If applicable, the plan includes a priority system for

using the State's allotment as described in Sec. 667.12(b)(2); and

(3) The budget includes only reasonable allowable

costs within the State's allotment.

(b) After standards are established. After the State

establishes review standards, the Secretary approves a State's
plan and budget for the allowable activities described in Sec.
667.14 if--

(1) The plan provides adequate budget justification for

those activities;

(2) The plan provides for a reasonable scheme for

reviewing referred institutions;

(3) The plan includes a priority system for review of

institutions as described in Sec. 667.12(c)(2);

(4) The proposed contracts with private agencies,

nationally recognized accrediting agencies, or peer review
systems to carry out SPRE functions included in the plan are
reasonable and appropriate; and

(5) The budget includes only reasonable allowable

costs within the State's allotment.

(c) Failure to submit an acceptable application. If a

State does not submit an application for funds under Sec. 667.12
or its application is not approved under this section--

(1) The State is ineligible to receive--

(i) Any funds appropriated to carry out this program;

(ii) Its allotment of any funds appropriated under the

SSIG Program; and

(iii) Any funds appropriated to carry out the NEISP

Program; and

(2) The Secretary--

(i) Does not designate as eligible for participation in a

title IV, HEA program any institution located in that State seeking
initial participation in that program, any branch campus located in
that State for which an institution seeks an initial designation of
eligibility under 34 CFR part 600, or any institution located in that
State that has undergone a change in ownership that results in a
change in control as determined in 34 CFR part 600; and

(ii) Grants only provisional certification, as determined

in 34 CFR part 668, to an institution in that State not described in
paragraph (c)(2)(i) of this section.

(Authority: 20 U.S.C. 1099a-1099a-3)