§1088. Definitions
(a) Institution of higher education
(1) Subject to paragraphs (2) through (4) of this subsection, the term "institution of higher education" for purposes of this subchapter and part C of subchapter I of chapter 34 of title 42 includes, in addition to the institutions covered by the definition in section 1141(a) of this title-
(A) a proprietary institution of higher education;
(B) a postsecondary vocational institution; and
(C) only for the purposes of part B of this subchapter, an institution outside the United States which is comparable to an institution of higher education as defined in section 1141(a) of this title and which has been approved by the Secretary for the purpose of part B of this subchapter.
(2)(A) For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, 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 1141(a) of this title. In the case of a graduate medical school outside the United States, such criteria shall include a requirement that a student attending a graduate medical school outside the United States is ineligible for loans made, insured, or guaranteed under part B of this subchapter unless-
(i)(I) at least 60 percent of those enrolled and at least 60 percent of the graduates of the graduate medical school outside the United States were not persons described in section 1091(a)(5) of this title in the year preceding the year for which a student is seeking a loan under part B of this subchapter; 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 this subchapter; or
(ii) the institution's clinical training program was approved by a State as of January 1, 1992.
(B) For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish an advisory panel of medical experts which 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.
If such accreditation standards are determined not to be comparable, the foreign medical school shall be required to meet the requirements of section 1141(a) of this title.
(C) 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) of this paragraph shall render such institution ineligible for the purpose of part B of this subchapter.
(D) The Secretary shall, not later than one year after July 23, 1992, prepare and submit to the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate a report on the implementation of the regulations required by subparagraph (A) of this paragraph.
(E) If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under this subchapter and part C of subchapter I of chapter 34 of title 42, then a student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B of this subchapter while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
(3) 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 2471(4)(C) of this title;
(B) enrolls 50 percent or more of its 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-year or 4-year program of instruction for which the institution awards an associate or baccalaureate degree;
(C) has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the prohibition of this subparagraph for a nonprofit institution that provides a 4-year or a 2-year program of instruction (or both) for which it awards a bachelor's or associate's degree, respectively; or
(D) has a student enrollment in which more than 50 percent of the students do not have a high school diploma or its recognized equivalent and does not provide a 4-year or a 2-year program of instruction (or both) for which it awards a bachelor's or 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 it exceeds such limitation because it serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a high school diploma or its recognized equivalent.
(4) 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; or
(B) the institution, its owner, or its 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 this subchapter and part C of subchapter I of chapter 34 of title 42, or has been judicially determined to have committed fraud involving funds under this subchapter and part C of subchapter I of chapter 34 of title 42.
(5) The Secretary shall certify an institution's qualification as an institution of higher education in accordance with the requirements of subpart 3 of part G of this subchapter.
(6) 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 this subchapter and part C of subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of this subchapter.
(b) Proprietary institution of higher education
For the purpose of this section, the term "proprietary institution of higher education" means a school (1) which provides an eligible program of training to prepare students for gainful employment in a recognized occupation, (2) which meets the requirements of clauses (1) and (2) of section 1141(a) of this title, (3) which does not meet the requirement of clause (4) of section 1141(a) of this title, (4) which is accredited by a nationally recognized accrediting agency or association approved by the Secretary pursuant to part G of this subchapter, (5) which has been in existence for at least 2 years, and (6) which has at least 15 percent of its revenues from sources that are not derived from funds provided under this subchapter and part C of subchapter I of chapter 34 of title 42, as determined in accordance with regulations prescribed by the Secretary. Such term also includes a proprietary educational institution in any State which, in lieu of the requirement in clause (1) of section 1141(a) of this title, 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
For the purpose of this section, the term "postsecondary vocational institution" means a school (1) which provides an eligible program of training to prepare students for gainful employment in a recognized occupation, (2) which meets the requirements of clauses (1), (2), (4), and (5) of section 1141(a) of this title, and (3) which has been in existence for at least 2 years. Such term also includes an educational institution in any State which, in lieu of the requirement in clause (1) of section 1141(a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.
(d) Academic and award year
(1) For the purpose of any program under this subchapter and part C of subchapter I of chapter 34 of title 42, the term "award year" shall be defined as the period beginning July 1 and ending June 30 of the following year.
(2) For the purpose of any program under this subchapter and part C of subchapter I of chapter 34 of title 42, the term "academic year" shall require a minimum of 30 weeks of instructional time, and, with respect to an undergraduate course of study, shall require that during such minimum period of instructional time a full-time student is expected to complete at least 24 semester or trimester hours or 36 quarter hours at an institution that measures program length in credit hours, or at least 900 clock hours at an institution that measures program length in clock hours. The Secretary may reduce such minimum of 30 weeks to not less than 26 weeks for good cause, as determined by the Secretary on a case-by-case basis, in the case of an institution of higher education that provides a 2-year or 4-year program of instruction for which the institution awards an associate or baccalaureate degree.
(e) Eligible program
(1) For purposes of this subchapter and part C of subchapter I of chapter 34 of title 42, the term "eligible program" means a program of at least-
(A) 600 clock hours of instruction, 16 semester hours, or 24 quarter hours, offered during a minimum of 15 weeks, in the case of a program that-
(i) provides a program of training to prepare students for gainful employment in a recognized profession; and
(ii) admits students who have not completed the equivalent of an associate degree; or
(B) 300 clock hours of instruction, 8 semester hours, or 12 hours, offered during a minimum of 10 weeks, in the case of-
(i) an undergraduate program that requires the equivalent of an associate degree for admissions; or
(ii) a graduate or professional program.
(2)(A) A program is an eligible program for purposes of part B of this subchapter if it is a program of at least 300 clock hours of instruction, but less than 600 clock hours of instruction, offered during a minimum of 10 weeks, that-
(i) has a verified completion rate of at least 70 percent, as determined in accordance with the regulations of the Secretary;
(ii) has a verified placement rate of at least 70 percent, as determined in accordance with the regulations of the Secretary; and
(iii) satisfies such further criteria as the Secretary may prescribe by regulation.
(B) In the case of a program being determined eligible for the first time under this paragraph, such determination shall be made by the Secretary before such program is considered to have satisfied the requirements of this paragraph.
(f) Third party servicer
For purposes of this subchapter and part C of subchapter I of chapter 34 of title 42, the term "third party servicer" means any individual, or any State, or private, profit or nonprofit organization which enters into a contract with-
(1) any eligible institution of higher education to administer, through either manual or automated processing, any aspect of such institution's student assistance programs under this subchapter and part C of subchapter I of chapter 34 of title 42; or
(2) any guaranty agency, or any eligible lender, to administer, through either manual or automated processing, any aspect of such guaranty agency's or lender's student loan programs under part B of this subchapter, including originating, guaranteeing, monitoring, processing, servicing, or collecting loans.
(Pub. L. 89 329, title IV, §481, as added Pub. L. 99 498, title IV, §407(a), Oct. 17, 1986,
Prior Provisions
A prior section 1088, Pub. L. 89 329, title IV, §481, as added Pub. L. 96 374, title IV, §451(a), Oct. 3, 1980,
Another prior section 1088, Pub. L. 89 329, title IV, §491, formerly §461, as added Pub. L. 90 575, title I, §151, Oct. 16, 1968,
Prior sections 1088a to 1088g were omitted in the general revision of this part by Pub. L. 96 374.
Section 1088a, Pub. L. 89 329, title IV, §492, formerly §462, as added Pub. L. 90 575, title I, §151, Oct. 16, 1968,
Section 1088b, Pub. L. 89 329, title IV, §493, formerly §463, as added Pub. L. 90 575, title I, §152, Oct. 16, 1968,
Section 1088b 1, Pub. L. 89 329, title IV, §493A, as added Pub. L. 94 482, title I, §131(b), Oct. 12, 1976,
Section 1088b 2, Pub. L. 89 329, title IV, §493B, as added Pub. L. 94 482, title I, §131(b), Oct. 12, 1976,
Section 1088b 3, Pub. L. 89 329, title IV, §493C, as added Pub. L. 94 482, title I, §131(b), Oct. 12, 1976,
Section 1088c, Pub. L. 89 329, title IV, §494, formerly §464, as added Pub. L. 90 575, title I, §152, Oct. 16, 1968,
Section 1088d, Pub. L. 89 329, title IV, §495, as added Pub. L. 92 318, title I, §139, June 23, 1972,
Section 1088e, Pub. L. 89 329, title IV, §496, as added Pub. L. 92 318, title I, §139A(a), June 23, 1972,
Section 1088f, Pub. L. 89 329, title IV, §497, as added Pub. L. 92 318, title I, §139B(a), June 23, 1972,
Section 1088f 1, Pub. L. 89 329, title IV, §497A, as added Pub. L. 94 482, title I, §133(a), Oct. 12, 1976,
Section 1088g, Pub. L. 89 329, title IV, §498, as added Pub. L. 92 318, title I, §139C(a), June 23, 1972,
Amendments
1993-Subsec. (a)(3)(B). Pub. L. 103 208, §2(h)(1), inserted before semicolon at end ", 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-year or 4-year program of instruction for which the institution awards an associate or baccalaureate degree".
Subsec. (a)(3)(D). Pub. L. 103 208, §2(h)(2), substituted "do not have a high school diploma or its recognized equivalent" for "are admitted pursuant to section 1091(d) of this title" and inserted before period at end ", except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit institution demonstrates to the satisfaction of the Secretary that it exceeds such limitation because it serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a high school diploma or its recognized equivalent".
Subsec. (a)(4)(A). Pub. L. 103 208, §2(h)(3), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "such institution has filed for bankruptcy; or".
Subsec. (d)(2). Pub. L. 103 208, §2(h)(4), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "For the purpose of any program under this subchapter and part C of subchapter I of chapter 34 of title 42, the term 'academic year' shall require a minimum of 30 weeks of instructional time in which a full-time student is expected to complete at least 24 semester or trimester hours or 36 quarter hours at an institution which measures program length in credit hours or at least 900 clock hours at an institution which measures program length in clock hours."
Subsec. (e)(2). Pub. L. 103 208, §2(h)(5), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The Secretary shall develop regulations to determine the quality of programs of less than 600 clock hours in length. Such regulations shall require, at a minimum, that the programs have a verified rate of completion of at least 70 percent and a verified rate of placement of at least 70 percent. Pursuant to these regulations and notwithstanding paragraph (1), the Secretary shall allow programs of less than 600 clock hours, but greater than 300 clock hours, in length to be eligible to participate in the programs authorized under part B of this subchapter."
Subsec. (f). Pub. L. 103 208, §2(h)(6), substituted "individual, or any State," for "State" in introductory provisions.
1992-Pub. L. 102 325, §481(a), amended section catchline.
Subsec. (a). Pub. L. 102 325, §481(a), added subsec. (a) and struck out former subsec. (a) which contained pars. (1) and (2) defining "institution of higher education" and "accredited" and par. (3) which related to recognition of accreditation of eligible institutions of higher education.
Subsec. (b). Pub. L. 102 325, §481(b)(4), struck out at end "For the purpose of this subsection, the Secretary shall publish a list of nationally recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of training offered."
Subsec. (b)(1). Pub. L. 102 325, §481(b)(1), substituted "an eligible program" for "not less than a 6-month program".
Subsec. (b)(4). Pub. L. 102 325, §481(b)(2), substituted "pursuant to part G of this subchapter," for "for this purpose, and".
Subsec. (b)(5), (6). Pub. L. 102 325, §481(b)(3), substituted "years, and" for "years." in cl. (5) and added cl. (6).
Subsec. (c)(1). Pub. L. 102 325, §481(c), substituted "an eligible program" for "not less than a six-month program".
Subsec. (d). Pub. L. 102 325, §481(d), inserted "and award" after "Academic" in heading and amended text generally. Prior to amendment, text read as follows: "For the purpose of any program under this subchapter and part C of subchapter I of chapter 34 of title 42, the term 'academic year' shall be defined by the Secretary by regulation."
Subsec. (e). Pub. L. 102 325, §481(e), amended subsec. (e) generally, substituting provisions relating to eligible program for provisions relating to impact of loss of accreditation.
Subsec. (f). Pub. L. 102 325, §481(f), added subsec. (f).
1991-Subsec. (b). Pub. L. 102 26, §2(d)(2)(A), repealed Pub. L. 101 508, §3005(b). See 1990 Amendment note below.
Pub. L. 102 26, §2(a)(2), struck out "and who have the ability to benefit (as determined by the institution under section 1091(d) of this title) from the training offered by the institution" before period at end of second sentence, and struck out at end "The Secretary shall not promulgate regulations defining the admissions procedures or remediation programs that must be used by an institution in admitting students on the basis of their ability to benefit from the training offered and shall not, as a condition of recognition under section 413(e) of this Act, impose upon any accrediting body or bodies standards which are different or more restrictive than the standards provided in this subsection."
Subsec. (c). Pub. L. 102 26, §2(a)(3), struck out before period at end "and who have the ability to benefit (as determined by the institution under section 1091(d) of this title) from the training offered by the institution".
1990-Subsec. (b). Pub. L. 101 508, which inserted ", except in accordance with section 1091(d) of this title," after "shall not" in fourth sentence, was repealed by Pub. L. 102 26, §2(d)(2)(A). See Construction of 1991 Amendment note below.
1989-Subsec. (a)(1). Pub. L. 101 239, §2007(b)(1), substituted "Subject to subsection (e) of this section, for the purpose" for "For the purpose".
Subsec. (a)(3). Pub. L. 101 239, §2007(c), added par. (3).
Subsec. (e). Pub. L. 101 239, §2007(b)(2), added subsec. (e).
1987-Subsec. (c). Pub. L. 100 50 substituted "section 1091(d) of this title" for "subsection (d) of this section".
Change of Name
Committee on Education and Labor of House of Representatives changed to Committee on Economic and Educational Opportunities of House of Representatives by House Resolution No. 6, One Hundred Fourth Congress, Jan. 4, 1995.
Effective Date of 1993 Amendment
Amendment by Pub. L. 103 208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102 325, except as otherwise provided, see section 5(a) of Pub. L. 103 208, set out as a note under section 1003 of this title.
Effective Date of 1992 Amendment
Section 498 of Pub. L. 102 325 provided that: "The changes made in part G of title IV of the Act [20 U.S.C. 1088 et seq.] by the amendments made by this part [part G (§§481 498) of title IV of Pub. L. 102 325, enacting sections 1091b, 1092c, 1094a, 1094b, 1098a, and 1098b of this title, amending sections 1088 to 1091, 1092, 1092b, 1093, 1094, 1095, 1096, 1097, and 1098 of this title, and repealing section 1096a of this title] shall take effect on the date of enactment of this Act [July 23, 1992], except that-
"(1) as otherwise provided in such part G;
"(2) the changes in section 481(a) [20 U.S.C. 1088(a)], relating to the definition of institution of higher education, other than paragraph (4) of such section, shall be effective on and after October 1, 1992;
"(3) section 481(e) as added by such amendments, relating to the definition of eligible program, shall be effective on and after July 1, 1993;
"(4) section 484(m)(1) [20 U.S.C. 1091(m)(1)], relating to proportion of courses permitted to be correspondence courses, as added by such amendments shall be effective on and after October 1, 1992;
"(5) the changes in section 485 [20 U.S.C. 1092], relating to disclosures, shall be effective with respect to periods of enrollment beginning on or after July 1, 1993;
"(6) the changes in section 488 [20 U.S.C. 1095], relating to transfers of allotments, shall apply with respect to funds provided for award years beginning on or after July 1, 1993; and
"(7) the changes in section 489 [20 U.S.C. 1096], relating to payments for administrative expenses, shall apply with respect to funds provided for award years beginning on or after July 1, 1993."
Effective Date of 1991 Amendment
Amendment by Pub. L. 102 26 applicable to any grant, loan, or work assistance to cover the cost of instruction for periods of enrollment beginning on or after July 1, 1991, see section 2(d)(1) of Pub. L. 102 26, set out as a note under section 1085 of this title.
Effective Date of 1990 Amendment
Section 3005(c) of Pub. L. 101 508, which provided that the amendments made by section 3005 (amending this section and section 1091 of this title) were to apply to any grant, loan, or work assistance to cover the cost of instruction for periods of enrollment beginning on or after Jan. 1, 1991, was repealed by section 2(d)(2)(A) of Pub. L. 102 26. See Construction of 1991 Amendment note below.
Effective Date of 1987 Amendment
Amendment by Pub. L. 100 50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99 498, see section 27 of Pub. L. 100 50, set out as a note under section 1001 of this title.
Construction of 1991 Amendment
Section 2(d)(2)(A) of Pub. L. 102 26 provided that: "Section 3005 of the Omnibus Reconciliation Act of 1990 [Pub. L. 101 508, amending this section and section 1091 of this title and enacting provisions set out as a note above] is repealed. Sections 484(d) and 481(b) of the Act [20 U.S.C. 1091(d), 1088(b)] shall be applied as if such section 3005 had not been enacted."
Need-Based Aid
Section 1544 of Pub. L. 102 325 authorized institutions of higher education to voluntarily agree with other such institutions to award financial aid not awarded under this chapter to students attending such institutions only on basis of demonstrated financial need for such aid, and to discuss and adopt principles of professional judgment for determining student financial need for such aid, with exceptions for cases pending on July 23, 1992, and for discussions or agreements on prospective financial aid awards to specific common applicants, and provided that such authorization was to expire on Sept. 30, 1994, prior to repeal by Pub. L. 103 382, title V, §568(e)(2), Oct. 20, 1994,
Section Referred to in Other Sections
This section is referred to in sections 1011a, 1070a 61, 1075, 1078, 1078 8, 1085, 1094, 1099a, 1099a 1, 1099b, 1099c, 1145, 1201a, 2394a, 5938, 6103 of this title; title 26 section 135; title 29 sections 1503, 1551, 2204; title 42 sections 292d, 602, 12604.