34 C.F.R. § 606.31 – How does a grantee maintain its eligibility?

(a) A grantee shall maintain its eligibility under the requirements in § 606.2, except for § 606.2(a)(3) and (4), for the duration of the grant period.
(b) The Secretary reviews an institution's application for a continuation award to ensure that—
1. (1) The institution continues to meet the eligibility requirements described in paragraph (a) of this section; and
2. (2) The institution is making substantial progress toward achieving the objectives described in its grant application including, if applicable, the institution's success in institutionalizing practices and improvements developed under the grant.
  (Authority: 20 U.S.C. 1101 et seq.)