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

TITLE IV--STUDENT ASSISTANCE

PART H--PROGRAM INTEGRITY

SEC. 494. PROGRAM REVIEW AND DATA

Section 498A (20 U.S.C. 1099c-1) is amended--

(1) in subsection (a)--

(A) in paragraph (2)--

(i) in the matter preceding subparagraph (A), by striking `may' and inserting `shall';

(ii) by amending subparagraph (C) to read as follows:

`(C) institutions with a significant fluctuation in Federal Stafford Loan volume, Federal Direct Stafford/Ford Loan volume, or Federal Pell Grant award volume, or any combination thereof, in the year for which the determination is made, compared to the year prior to such year, that are not accounted for by changes in the Federal Stafford Loan program, the Federal Direct Stafford/Ford Loan program, or the Pell Grant program, or any combination thereof;';

(iii) by amending subparagraph (D) to read as follows:

`(D) institutions reported to have deficiencies or financial aid problems by the State licensing or authorizing agency, or by the appropriate accrediting agency or association;';

(iv) in subparagraph (E), by inserting `and' after the semicolon; and

(v) by striking subparagraphs (F) and (G) and inserting the following:

`(F) such other institutions that the Secretary determines may pose a significant risk of failure to comply with the administrative capability or financial responsibility provisions of this title; and'; and

(B) in paragraph (3)(A), by inserting `relevant' after `all'; and

(2) by amending subsection (b) to read as follows:

`(b) SPECIAL ADMINISTRATIVE RULES- In carrying out paragraphs (1) and (2) of subsection (a) and any other relevant provisions of this title, the Secretary shall--

`(1) establish guidelines designed to ensure uniformity of practice in the conduct of program reviews of institutions of higher education;

`(2) make available to each institution participating in programs authorized under this title complete copies of all review guidelines and procedures used in program reviews;

`(3) permit the institution to correct or cure an administrative, accounting, or recordkeeping error if the error is not part of a pattern of error and there is no evidence of fraud or misconduct related to the error;

`(4) base any civil penalty assessed against an institution of higher education resulting from a program review or audit on the gravity of the violation, failure, or misrepresentation; and

`(5) inform the appropriate State and accrediting agency or association whenever the Secretary takes action against an institution of higher education under this section, section 498, or section 432.'.

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Last Modified: 09/25/2003