Laws & Guidance HIGHER EDUCATION
1998 Amendments to the Higher Education Act of 1965
P.L. 105-244

TITLE I--GENERAL PROVISIONS
SEC. 101. REVISION OF TITLE I

(a) GENERAL PROVISIONS- Title I (20 U.S.C. 1001 et seq.) is amended to read as follows:

`TITLE I--GENERAL PROVISIONS

`PART A--DEFINITIONS

`SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

`(a) INSTITUTION OF HIGHER EDUCATION- For purposes of this Act, other than title IV, the term `institution of higher education' means an educational institution in any State that--

`(1) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate;

`(2) is legally authorized within such State to provide a program of education beyond secondary education;

`(3) provides an educational program for which the institution awards a bachelor's degree or provides not less than a 2-year program that is acceptable for full credit toward such a degree;

`(4) is a public or other nonprofit institution; and

`(5) 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.

`(b) ADDITIONAL INSTITUTIONS INCLUDED- For purposes of this Act, other than title IV, the term `institution of higher education' also includes--

`(1) any school that provides not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation and that meets the provision of paragraphs (1), (2), (4), and (5) of subsection (a); and

`(2) a public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1), admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.

`(c) LIST OF ACCREDITING AGENCIES- For purposes of this section and section 102, 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 or training offered.

`SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF TITLE IV PROGRAMS.

`(a) DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF TITLE IV PROGRAMS-

`(1) INCLUSION OF ADDITIONAL INSTITUTIONS- Subject to paragraphs (2) through (4) of this subsection, the term `institution of higher education' for purposes of title IV includes, in addition to the institutions covered by the definition in section 101--

`(A) a proprietary institution of higher education (as defined in subsection (b) of this section);

`(B) a postsecondary vocational institution (as defined in subsection (c) of this section); and

`(C) only for the purposes of part B of title IV, an institution outside the United States that is comparable to an institution of higher education as defined in section 101 and that has been approved by the Secretary for the purpose of part B of title IV.

`(2) INSTITUTIONS OUTSIDE THE UNITED STATES-

`(A) IN GENERAL- For the purpose of qualifying as an institution under paragraph (1)(C), 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 section 101. In the case of a graduate medical or veterinary school outside the United States, such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B unless--

`(i)(I) 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 B of title IV; and

`(II) at least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States (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 B of title IV; or

`(ii) the institution has a clinical training program that was approved by a State as of January 1, 1992, or the institution's students complete their clinical training at an approved veterinary school located in the United States.

`(B) ADVISORY PANEL-

`(i) IN GENERAL- For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, the Secretary shall establish an advisory panel of medical experts that shall--

`(I) evaluate the standards of accreditation applied to applicant foreign medical schools; and

`(II) determine the comparability of those standards to standards for accreditation applied to United States medical schools.

`(ii) SPECIAL RULE- If the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical school shall be required to meet the requirements of section 101.

`(C) FAILURE TO RELEASE INFORMATION- 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 subparagraph (A) shall render such institution ineligible for the purpose of part B of title IV.

`(D) SPECIAL RULE- If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under title IV, then a student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.

`(3) LIMITATIONS BASED ON COURSE OF STUDY OR ENROLLMENT- An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution--

`(A) offers more than 50 percent of such institution's courses by correspondence, unless the institution is an institution that meets the definition in section 521(4)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act;

`(B) enrolls 50 percent or more of the institution's students in correspondence courses, unless the institution is an institution that meets the definition in such section, except that the Secretary, at the request of such institution, may waive the applicability of this subparagraph to such institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively;

`(C) 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 a nonprofit institution that provides a 2- or 4-year program of instruction (or both) for which the institution awards a bachelor's degree, or an associate's degree or a postsecondary diploma, respectively; or

`(D) has a student enrollment in which more than 50 percent of the students do not have a secondary school diploma or its recognized equivalent, and does not provide a 2- or 4-year program of instruction (or both) for which the institution awards a bachelor's degree or an associate's degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit 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.

`(4) LIMITATIONS BASED ON MANAGEMENT- An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if--

`(A) 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, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution's management or policies) that files for bankruptcy under chapter 11 of title 11, United States Code, between July 1, 1998, and December 1, 1998; or

`(B) 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 funds under title IV, or has been judicially determined to have committed fraud involving funds under title IV.

`(5) CERTIFICATION- 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.

`(6) LOSS OF ELIGIBILITY- An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) 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.

`(b) PROPRIETARY INSTITUTION OF HIGHER EDUCATION-

`(1) PRINCIPAL CRITERIA- For the purpose of this section, the term `proprietary institution of higher education' means a school that--

`(A) provides an eligible program of training to prepare students for gainful employment in a recognized occupation;

`(B) meets the requirements of paragraphs (1) and (2) of section 101(a);

`(C) does not meet the requirement of paragraph (4) of section 101(a);

`(D) is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part H of title IV;

`(E) has been in existence for at least 2 years; and

`(F) has at least 10 percent of the school's revenues from sources that are not derived from funds provided under title IV, as determined in accordance with regulations prescribed by the Secretary.

`(2) ADDITIONAL INSTITUTIONS- The term `proprietary institution of higher education' also includes a proprietary educational institution in any State that, in lieu of the requirement in paragraph (1) of section 101(a), admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.

`(c) POSTSECONDARY VOCATIONAL INSTITUTION-

`(1) PRINCIPAL CRITERIA- For the purpose of this section, the term `postsecondary vocational institution' means a school that--

`(A) provides an eligible program of training to prepare students for gainful employment in a recognized occupation;

`(B) meets the requirements of paragraphs (1), (2), (4), and (5) of section 101(a); and

`(C) has been in existence for at least 2 years.

`(2) ADDITIONAL INSTITUTIONS- The term `postsecondary vocational institution' also includes an educational institution in any State that, in lieu of the requirement in paragraph (1) of section 101(a), admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.

`SEC. 103. ADDITIONAL DEFINITIONS.

`In this Act:

`(1) COMBINATION OF INSTITUTIONS OF HIGHER EDUCATION- The term `combination of institutions of higher education' means a group of institutions of higher education that have entered into a cooperative arrangement for the purpose of carrying out a common objective, or a public or private nonprofit agency, organization, or institution designated or created by a group of institutions of higher education for the purpose of carrying out a common objective on the group's behalf.

`(2) DEPARTMENT- The term `Department' means the Department of Education.

`(3) DISABILITY- The term `disability' has the same meaning given that term under section 3(2) of the Americans With Disabilities Act of 1990.

`(4) ELEMENTARY SCHOOL- The term `elementary school' has the same meaning given that term under section 14101 of the Elementary and Secondary Education Act of 1965.

`(5) GIFTED AND TALENTED- The term `gifted and talented' has the same meaning given that term under section 14101 of the Elementary and Secondary Education Act of 1965.

`(6) LOCAL EDUCATIONAL AGENCY- The term `local educational agency' has the same meaning given that term under section 14101 of the Elementary and Secondary Education Act of 1965.

`(7) NEW BORROWER- The term `new borrower' when used with respect to any date means an individual who on that date has no outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under title IV.

`(8) NONPROFIT- The term `nonprofit' as applied to a school, agency, organization, or institution means a school, agency, organization, or institution owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

`(9) SCHOOL OR DEPARTMENT OF DIVINITY- The term `school or department of divinity' means an institution, or a department or a branch of an institution, the program of instruction of which is designed for the education of students--

`(A) to prepare the students to become ministers of religion or to enter upon some other religious vocation (or to provide continuing training for any such vocation); or

`(B) to prepare the students to teach theological subjects.

`(10) SECONDARY SCHOOL- The term `secondary school' has the same meaning given that term under section 14101 of the Elementary and Secondary Education Act of 1965.

`(11) SECRETARY- The term `Secretary' means the Secretary of Education.

`(12) SERVICE-LEARNING- The term `service-learning' has the same meaning given that term under section 101(23) of the National and Community Service Act of 1990.

`(13) SPECIAL EDUCATION TEACHER- The term `special education teacher' means teachers who teach children with disabilities as defined in section 602 of the Individuals with Disabilities Education Act.

`(14) STATE EDUCATIONAL AGENCY- The term `State educational agency' has the same meaning given that term under section 14101 of the Elementary and Secondary Education Act of 1965.

`(15) STATE HIGHER EDUCATION AGENCY- The term `State higher education agency' means the officer or agency primarily responsible for the State supervision of higher education.

`(16) STATE; FREELY ASSOCIATED STATES-

`(A) STATE- The term `State' includes, in addition to the several States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States.

`(B) FREELY ASSOCIATED STATES- The term `Freely Associated States' means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.

 Previous Table of Contents Next 

 
Print this page Printable view Send this page Share this page
Last Modified: 09/23/2003