Sec. 6. Mandatory compliance reviews
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Section 3693 of title 38, United States Code, is amended by adding at the end the following new subsection: In addition to the annual compliance surveys conducted under subsection (a), the Secretary shall also conduct a compliance review, in accordance with such regulations as the Secretary shall prescribe, of an educational institution described in such subsection whenever the Secretary finds any of the following: The student dropout rate of the institution has increased rapidly.
The cohort default rate, as defined in section 435(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1085(m) ), of the educational institution has increased rapidly or is consistently higher than the average of cohort default rate of comparable educational institutions. The number of substantiated complaints filed with the centralized complaint system established under section 4 of Executive Order 13607 (77 Fed. Reg. 25863) with respect to the educational institution have increased rapidly or is consistently higher than the number of substantiated complaints filed with respect to other comparable educational institutions.
The educational institution is the subject of a civil lawsuit in Federal or State court, is charged with a crime under Federal or State law, or is the subject of an official investigation of a State or Federal agency for misconduct. The educational institution has significant growth in revenue resulting from tuition, including tuition paid with assistance provided under this chapter, chapters 30 through 35 of this title, or chapters 106A or 1606 of title 10, which cannot be attributed to changes made to such chapters by Acts of Congress or changes to the administration of such chapters.
Such other findings as the Secretary considers warrant conducting a compliance survey under subsection (a). . Subsection
(c)of such section, as added by subsection (a), shall take effect on August 1, 2014.
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- 77 FR 25863
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