---
kind: "section"
citation: "34 C.F.R. § 694.12"
title: "34"
number: "694.12"
heading: "Under what conditions do State and Partnership GEAR UP grantees make section 404E scholarship awards?"
url: "https://uscodex.org/cfr/34/694.12"
---

# §694.12. Under what conditions do State and Partnership GEAR UP grantees make section 404E scholarship awards?

- (a)
  - (1) **State Grantees.** All State grantees must establish or maintain a financial assistance program that awards [section 404E](/cfr/34/404E.md) scholarships to students in accordance with the requirements of [§ 694.13](/cfr/34/694.13.md) or [§ 694.14](/cfr/34/694.14.md), as applicable.
  - (2) **Partnership Grantees.** Partnerships may, but are not required, to award scholarships to eligible students. If a Partnership awards scholarships to eligible students pursuant to [section 404E](/cfr/34/404E.md) of the HEA, it must comply with the requirements of [§ 694.13](/cfr/34/694.13.md) or [§ 694.14](/cfr/34/694.14.md), as applicable.
- (b)
  - (1) **Section 404E scholarship awards for grantees whose initial GEAR UP grant awards were made prior to August 14, 2008.** A State or Partnership grantee making [section 404E](/cfr/34/404E.md) scholarship awards using funds from GEAR UP grant awards that were made prior to August 14, 2008, must provide such scholarship awards in accordance with the requirements of [§ 694.13](/cfr/34/694.13.md) unless it elects to provide the scholarships in accordance with the requirements of [§ 694.14](/cfr/34/694.14.md) pursuant to [paragraph (b)(2)](#b-2) of this section.
  - (2) **Election to use § 694.14 requirements.** A State or Partnership grantee making [section 404E](/cfr/34/404E.md) scholarship awards using funds from GEAR UP grant awards that were made prior to August 14, 2008, may provide such scholarship awards in accordance with the requirements of [§ 694.14](/cfr/34/694.14.md) (rather than the requirements of [§ 694.13](/cfr/34/694.13.md)) provided that the grantee—
    - (i) Informs the Secretary, in writing, of its election to make the [section 404E](/cfr/34/404E.md) scholarship awards in accordance with the requirements of [§ 694.14](/cfr/34/694.14.md); and
    - (ii) Such election does not decrease the amount of the scholarship promised to any individual student under the grant.
- (c) **Section 404E scholarship awards for grantees whose initial GEAR UP grant awards were made on or after August 14, 2008.** A State or Partnership grantee making [section 404E](/cfr/34/404E.md) scholarship awards using funds from GEAR UP grant awards that were made on or after August 14, 2008, must provide such scholarship awards in accordance with the requirements of [§ 694.14](/cfr/34/694.14.md).

## Notes

### Amendments

[75 FR 65799, Oct. 26, 2010]

### Authority

Authority: 20 U.S.C. 1070a-21 to 1070a-28.

### Source

Source: 65 FR 24760, Apr. 27, 2000, unless otherwise noted.

### Amendments

[75 FR 65799, Oct. 26, 2010]