(a) As used in this section, “novice applicant” means -
(1) Any applicant for a grant from ED that -
(i) Has never received a grant or subgrant under the program from which it seeks funding;
(ii) Has never been a member of a group application, submitted in accordance with §§ 75.127-75.129, that received a grant under the program from which it seeks funding; and
(iii) Has not had an active discretionary grant from the Federal Government in the five years before the deadline date for applications under the program.
(b) For the purposes of paragraph (a)(1)(iii) of this section, a grant is active until the end of the grant's project or funding period, including any extensions of those periods that extend the grantee's authority to obligate funds.
(c) If the Secretary determines that special consideration of novice applications is appropriate, the Secretary may either -
(1) Establish a separate competition for novice applicants; or
(2) Give competitive preference to novice applicants under the procedures in 34 CFR 75.105(c)(2).
(d) Before making a grant to a novice applicant, the Secretary imposes special conditions, if necessary, to ensure the grant is managed effectively and project objectives are achieved.