Sec. 4617. Written arrangements to provide educational programs
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Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq.) is amended by inserting after section 486C (as added by section 4614 of this Act) the following: Except as provided in paragraph (2), if an eligible institution enters into a written arrangement with another eligible institution, or with a consortium of eligible institutions, under which the other eligible institution or consortium provides part of the educational program to students enrolled in the first institution, the Secretary shall consider that educational program to be an eligible program if the educational program offered by the institution that grants the degree or certificate otherwise satisfies the requirements for eligibility under this title.
If the written arrangement described in paragraph
(1)is between two or more eligible institutions that are owned or controlled by the same individual, partnership, or corporation, the Secretary shall consider the educational program to be an eligible program if— the educational program offered by the institution that grants the degree or certificate otherwise satisfies the requirements for eligibility under this title; and the institution that grants the degree or certificate provides more than 50 percent of the educational program. Under a study abroad program, if an eligible institution enters into a written arrangement under which an institution in another country, or an organization acting on behalf of an institution in another country, provides part of the educational program of students enrolled in the eligible institution, the Secretary considers that educational program to be an eligible program if it otherwise satisfies the requirements of paragraphs
(1)through
(3)of subsection (c). If an eligible institution enters into a written arrangement with an institution or organization that is not an eligible institution under which the ineligible institution or organization provides part of the educational program of students enrolled in the eligible institution, the Secretary shall consider that educational program to be an eligible program if— the ineligible institution or organization has not— had its eligibility to participate in the programs under this title terminated by the Secretary; voluntarily withdrawn from participation programs under this title under a termination, show-cause, suspension, or similar type proceeding initiated by the institution's State licensing agency, accrediting agency, guarantor, or by the Secretary; had its certification to participate in programs under this title revoked by the Secretary; had its application for re-certification to participate in programs under this title denied by the Secretary; or had its application for certification to participate in programs under this title denied by the Secretary; the ineligible institution or organization does not have any role in the admission of students into the educational program; the educational program offered by the institution that grants the degree or certificate otherwise satisfies the requirements for eligibility under this title; and the ineligible institution or organization provides 25 percent or less of the educational program; or the ineligible institution or organization provides more than 25 percent but less than 50 percent of the educational program; the eligible institution and the ineligible institution or organization are not owned or controlled by the same individual, partnership, or corporation; the eligible institution's accrediting agency, or if the institution is a public postsecondary vocational educational institution, the State agency determined by the Secretary to be a reliable authority as to the quality of public postsecondary vocational education pursuant to section 487(c)(4), has specifically determined that the institution's arrangement meets the agency's standards for the contracting out of educational services; and the eligible institution provides to the Secretary the institution’s expenditures on instruction, student services, marketing, recruitment, advertising, and lobbying made available under section 132(i)(1)(AA) with respect to the portion of the educational program covered by the written arrangement. If an institution enters into a written arrangement as described in subsection (a), subsection (b), or subsection (c), except as provided in paragraph (2), the institution at which the student is enrolled as a regular student shall determine the student's eligibility for funds under this title, and shall calculate and disburse those funds to that student. In the case of a written arrangement between eligible institutions, the institutions may agree in writing to have any eligible institution in the written arrangement calculate and disburse funds under this title to the student and the Secretary shall not consider that institution to be a third party servicer for that arrangement. The institution that calculates and disburses a student's funds under paragraph
(1)or paragraph
(2)must— take into account all the hours in which the student enrolls at each institution that apply to the student's degree or certificate when determining the student's enrollment status and cost of attendance; and maintain all records regarding the student's eligibility for and receipt of funds under this title. If an institution enters into a written arrangement described in subsection (a), subsection (b), or subsection (c), the institution shall provide directly to enrolled and prospective students, and make available on a publicly accessible website of the institution, a description of written arrangements the institution has entered into in accordance with this section, including information on— the portion of the educational program that the institution that grants the degree or certificate is not providing; the name and location of the other institutions or organizations that are providing the portion of the educational program that the institution that grants the degree or certificate is not providing; the method of delivery of the portion of the educational program that the institution that grants the degree or certificate is not providing; and estimated additional costs students may incur as the result of enrolling in an educational program that is provided, in part, under the written arrangement. .
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Sec. 4617
Written arrangements to provide educational programs
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