Sec. 201. Accreditation reform
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Section 102(a)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1002(a)(1) ) is amended— by redesignating subparagraphs
(B)and
(C)as subparagraphs
(C)and (D), respectively; and by inserting after subparagraph
(A)the following: if accredited by an authorized accreditation authority in a State that has an alternative accreditation agreement with the Secretary, as described in section 498C— an institution that provides postsecondary education; a postsecondary apprenticeship program; or a postsecondary education course or program provided by an institution of postsecondary education, a nonprofit organization, or a for-profit organization or business; . Part H of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1099a et seq. ) is amended by adding at the end the following: Notwithstanding any other provision of law, a State may establish an alternative accreditation system for the purpose of establishing institutions that provide postsecondary education and postsecondary education courses or programs as eligible for funding under title IV if the State submits a plan to the Secretary for the establishment of the alternative accreditation system. Such institutions, courses, or programs may include— institutions that provide postsecondary education that culminates in a certification, credential, or degree; postsecondary apprenticeship programs that culminate in a certification, credential, or degree; any other postsecondary education course or program provided by an institution of postsecondary education, a nonprofit organization, or a for-profit organization or business, that culminates in a certification, credential, or degree; and any of the entities described in paragraphs
(1)through
(3)that do not award a postsecondary certification, credential, or degree, provided that such entity provides credit that will be accepted toward a postsecondary certification, credential, or degree at one or more of the entities described in paragraphs
(1)through (3). The alternative accreditation plan described in subsection
(a)shall include the following: The State's plan for designating one or more authorized accrediting entities within the State, such as the State Department of Education, another State agency, an industry-specific accrediting agency, or another entity, and an explanation of the process through which the State will select such authorized accrediting entities. The standards or criteria that an institution that provides postsecondary education and a postsecondary education course or program must meet in order to— receive an initial accreditation as part of the alternative accreditation system; and maintain such accreditation. A description of the appeals process through which an institution that provides postsecondary education or a postsecondary education course or program may appeal to an authorized accrediting entity if such institution, course, or program is denied accreditation under the State alternative accreditation system. Any State policy regarding public accessibility to certain information relating to institutions that provide postsecondary education and postsecondary education courses and programs accredited under the State alternative accreditation system, including— the information described in subsection (e)(1); and information about the rates of job placement for individuals who have graduated from an institution or completed a course or program that is accredited under the State alternative accreditation system, if available. An assurance by the State that under the State alternative accreditation system, only institutions that provide postsecondary education and postsecondary education courses or programs that provide a postsecondary certification, credential, or degree, or credits toward a postsecondary certification, credential, or degree (as defined by the State in accordance with paragraph (6)) will be accredited. The State's definition of a postsecondary certification, credential, or degree, as such term applies to the requirement described in paragraph (5). A description of the agreements that the State will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system for purposes of accreditation regarding requirements for learning outcomes or labor market outcomes, in lieu of the requirements described under section 496(a)(5). A description of the agreements that the State will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system for purposes of accreditation regarding requirements for instructional time, in lieu of the requirements described under section 481(a)(2). A description of the agreements that the State will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system regarding requirements for credit hours or clock hours, or other measures of student learning, in lieu of the requirements described under section 481(b). Not later than 30 days after the Secretary receives a plan from a State regarding an alternative accreditation system, the Secretary shall submit to the State and Congress, and make publicly available, a response to the State’s plan. The Secretary shall approve the plan and allow the State to establish the alternative accreditation system if the plan meets the requirements described in subsection (b). Each plan approved under subsection
(c)shall allow a State to carry out an alternative accreditation system in the State for a period of 5 years. States that establish an alternative accreditation system shall submit a report to the Secretary every 3 years following the implementation of the alternative accreditation system. The report shall include— in the case of a postsecondary education course or program that is accredited through the State alternative accreditation system— the number and percentage of students who successfully complete each such postsecondary education course or program; and for postsecondary education courses or programs that lead to a certification, credential, or degree, the number of students in such course or program; in the case of an institution that provides postsecondary education that is accredited through the State alternative accreditation system— the number and percentage of students who successfully obtain a postsecondary certification, credential, or degree from such institution; and the number and percentage of students who do not successfully obtain a postsecondary certification, credential, or degree from such institution but do obtain credit from such institution toward a postsecondary degree, credential, or certification; and a description of any requirements for third-party verification of information contained in the report. . Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq. ) is amended by adding at the end the following: Notwithstanding any other provision of law, an institution, program, or course that is eligible for funds under this title in accordance with section 102(a)(1)(B) and meets the requirements of section 498C— shall not be required to meet the requirements of section 496; and shall not be required to meet the requirements described in subsections (a)(2) and
(b)of section 481. .
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