Sec. 101. Definition of institution of higher education
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Part A of title I ( 20 U.S.C. 1001 et seq.) is amended by striking section 101 ( 20 U.S.C. 1001 ) and inserting the following: For purposes of this Act, the term institution of higher education means an educational institution in any State that— admits as regular students only persons who— have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, or who meet the requirements of section 484(d); are beyond the age of compulsory school attendance in the State in which the institution is located; or will be dually or concurrently enrolled in the institution and a secondary school; is legally authorized by the State in which it maintains a physical location to provide a program of education beyond secondary education; is accredited by a nationally recognized accrediting agency or association; or if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time; and provides— an educational program for which the institution awards a bachelor’s degree, graduate degree, or professional degree; not less than a 2-year educational program which is acceptable for full credit towards a bachelor’s degree; or a non-degree program leading to a recognized educational credential that meets the definition of an eligible program under section 481(b).
A proprietary institution shall not be considered an institution of higher education unless such institution has been in existence for at least 2 years. A proprietary institution shall not be considered an institution of higher education for the purposes of any program under title III or V. A nonprofit or public institution that offers only non-degree programs described in subsection (a)(4)(C) shall not be considered an institution of higher education unless such institution has been in existence for at least 2 years.
An institution shall not be considered an institution of higher education if— the institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy; or the institution, the institution’s owner, or the institution’s chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of Federal funds, or has been judicially determined to have committed a crime involving the acquisition, use, or expenditure involving Federal funds.
An institution shall not be considered an institution of higher education if such institution— offers more than 50 percent of such institution’s courses by correspondence education, unless the institution is an institution that meets the definition in section 3(3)(C) of the Carl D. Perkins Career and Technical Education Act of 2006; enrolls 50 percent or more of the institution’s students in correspondence education courses, unless the institution is an institution that meets the definition in section 3(3)(C) of such Act; has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for an institution that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate’s degree or a postsecondary certificate, or a bachelor’s degree, respectively; or has a student enrollment in which more than 50 percent of the students either do not have a secondary school diploma or its recognized equivalent, or do not meet the requirements of section 484(d), and does not provide a 2- or 4-year program of instruction (or both) for which the institution awards an associate’s degree or a bachelor’s degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if an institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent or do not meet the requirements of section 484(d).
For purposes of this section, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part H of title IV, to be reliable authority as to the quality of the education offered. The Secretary shall certify, for the purposes of participation in title IV, an institution’s qualification as an institution of higher education in accordance with the requirements of subpart 3 of part H of title IV.
An institution of higher education shall not be considered to meet the definition of an institution of higher education for the purposes of participation in title IV if such institution is removed from eligibility for funds under title IV as a result of an action pursuant to part H of title IV. Nothing in subsection (a)(2) relating to State authorization shall be construed to— impede or preempt State laws, regulations, or requirements on how States authorize out-of-state institutions of higher education; or limit, impede, or preclude a State’s ability to collaborate or participate in a reciprocity agreement to permit an institution within such State to meet any other State’s authorization requirements for out-of-state institutions. .
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Sec. 101
Definition of institution of higher education
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