Sec. 2. Definition of institution of higher education
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The Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq.) is amended— in section 101— in subsection (a), in the matter preceding paragraph (1), by striking other than title IV, ; in subsection (b)— in the matter preceding paragraph (1), by striking other than title IV, ; in paragraph (1), by striking and after the semicolon; in paragraph (2)(B), by striking the period at the end and inserting a semicolon; and by adding at the end the following: a public, nonprofit postsecondary vocational institution; and only for the purposes of part D of title IV, an institution outside the United States that is comparable to an institution of higher education, as defined in subsection (a), and that has been approved by the Secretary for the purpose of part D of title IV, consistent with the requirements of section 452(d). ; in subsection (c), by striking and section 102 ; and by adding at the end the following:
An institution shall be considered to meet the definition of an institution of higher education in subsection
(a)or
(b)only if such institution— limits enrollment of students in distance education courses offered by the institution to not more than 50 percent of all students enrolled in the institution, unless the institution is a public or nonprofit technical institution or career and technical education school, as described in section 3(3)(C) of the Carl D. Perkins Career and Technical Education Act of 2006; limits enrollment of students who are incarcerated to not more than 25 percent of all students enrolled in the institution; limits enrollment of students who do not have a secondary school diploma or its recognized equivalent to not more than 50 percent of all students enrolled in the institution; and if the institution offers an education or training program that leads to a certificate, or other nondegree recognized credential and funds available under title IV for students are used for enrollment in such education or program, ensures that such education or program prepares students for gainful employment in a recognized occupation. An institution shall not be considered to meet the definition of an institution of higher education in subsection
(a)or
(b)if such institution— 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, the institution's chief executive officer, or any other executive officer of the institution— has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under title IV; has been determined to have committed fraud, substantial misrepresentation, or false certification involving funds under title IV; or has been previously employed at an institution receiving funds under title IV that closed. The Secretary shall certify 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 in subsection
(a)or
(b)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. For the purpose of this section, the term postsecondary vocational institution means a school that— provides an eligible program of training to prepare students for gainful employment in a recognized occupation; meets the requirements of paragraphs (1), (2), (4), and
(5)of subsection (a); and has been in existence for at least 2 years. The term postsecondary vocational institution also includes an educational institution in any State that, in lieu of the requirement in subsection (a)(1), admits as regular students individuals— who are beyond the age of compulsory school attendance in the State in which the institution is located; or who will be dually or concurrently enrolled in the institution and a secondary school. For the purpose of qualifying as an institution under subsection (b)(4), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education, as defined in subsection 101(a) (except that a graduate medical school, nursing school, or a veterinary school, located outside the United States shall not be required to meet the requirements of subsection (a)(4)). Such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made under part D of title IV unless— in the case of a graduate medical school located outside the United States— at least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 484(a)(5) in the year preceding the year for which a student is seeking a loan under part D of title IV; and at least 75 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part D of title IV; in the case of a veterinary school located outside the United States that does not meet the requirements of subsection (a)(4), the institution's students complete their clinical training at an approved veterinary school located in the United States; or in the case of a nursing school located outside of the United States— the nursing school has an agreement with a hospital, or accredited school of nursing (as such terms are defined in section 801 of the Public Health Service Act ( 42 U.S.C. 296 )), located in the United States that requires the students of the nursing school to complete the students' clinical training at such hospital or accredited school of nursing; the nursing school has an agreement with an accredited school of nursing located in the United States providing that the students graduating from the nursing school located outside of the United States also receive a degree from the accredited school of nursing located in the United States; the nursing school certifies only Federal Direct Stafford Loans under section 455(a)(2)(A), Federal Direct Unsubsidized Stafford Loans under section 455(a)(2)(D), or Federal Direct PLUS Loans under section 455(a)(2)(B) for students attending the institution; the nursing school reimburses the Secretary for the cost of any loan defaults for current and former students included in the calculation of the institution's cohort default rate during the previous fiscal year; and not less than 75 percent of the individuals who were students or graduates of the nursing school, and who took the National Council Licensure Examination for Registered Nurses in the year preceding the year for which the institution is certifying a Federal Direct Stafford Loan under section 455(a)(2)(A), a Federal Direct Unsubsidized Stafford Loan under section 455(a)(2)(D), or a Federal Direct PLUS Loan under section 455(a)(2)(B), received a passing score on such examination. The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by paragraph
(1)shall render such institution ineligible for the purpose of part D of title IV. If, pursuant to this subsection, an institution loses eligibility to participate in the programs under title IV, then a student enrolled in such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part D of title IV while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred. ; by striking section 102; and by redesignating section 103 as section 102.
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