---
kind: "section"
citation: "34 C.F.R. § 606.4"
title: "34"
number: "606.4"
heading: "What are low educational and general expenditures?"
url: "https://uscodex.org/cfr/34/606.4"
---

# §606.4. What are low educational and general expenditures?

- (a)
  - (1) Except as provided in [paragraph (b)](#b) of this section, for the purpose of [§ 606.2(a)(2)](/cfr/34/606.2.md?p=a-2), an applicant institution's average educational and general expenditures per full-time equivalent undergraduate student in the base year must be less than the average educational and general expenditures per full-time equivalent undergraduate student in that year of comparable institutions that offer similar instruction.
  - (2) For the purpose of [paragraph (a)(1)](#a-1) of this section, the Secretary determines the average educational and general expenditure per full-time equivalent undergraduate student for institutions with graduate students that do not differentiate between graduate and undergraduate educational and general expenditures by discounting the graduate enrollment using a factor of 2.5 times the number of graduate students.
- (b) Each year, the Secretary notifies prospective applicants through a notice in the Federal Register of the average educational and general expenditures per full-time equivalent undergraduate student at comparable institutions that offer similar instruction.
- (c) The Secretary may waive the requirement contained in [paragraph (a)](#a) of this section, if the Secretary determines, based upon persuasive evidence provided by the institution, that—
  - (1) The institution's failure to satisfy the criteria in [paragraph (a)](#a) of this section was due to factors which, if used in determining compliance with those criteria, distorted that determination; and
  - (2) The institution's designation as an eligible institution under this part is otherwise consistent with the purposes of this part.
- (d) For the purpose of [paragraph (c)(1)](#c-1) of this section, the Secretary considers that the following factors may distort an institution's educational and general expenditures per full-time equivalent undergraduate student—
  - (1) Low student enrollment;
  - (2) Location of the institution in an unusually high cost-of-living area;
  - (3) High energy costs;
  - (4) An increase in State funding that was part of a desegregation plan for higher education; or
  - (5) **Operation of high cost professional schools such as medical or dental schools.**

## Notes

### Authority

Authority: 20 U.S.C. 1101 et seq., unless otherwise noted.

### Source

Source: 64 FR 70147, Dec. 15, 1999, unless otherwise noted.