 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
                           Part A--Definitions
 
Sec. 1002. Definition of institution of higher education for 
        purposes of student assistance programs
        

(a) Definition of institution of higher education for purposes of 
        student assistance programs

              (1) Inclusion of additional institutions

        Subject to paragraphs (2) through (4) of this subsection, the 
    term ``institution of higher education'' for purposes of subchapter 
    IV of this chapter and part C of subchapter I of chapter 34 of title 
    42 includes, in addition to the institutions covered by the 
    definition in section 1001 of this title--
            (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 subchapter IV of this 
        chapter, an institution outside the United States that is 
        comparable to an institution of higher education as defined in 
        section 1001 of this title and that has been approved by the 
        Secretary for the purpose of part B of subchapter IV of this 
        chapter.

             (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 1001 of this title. 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 \1\ unless--
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    \1\ So in original. Probably should be ``part B of subchapter IV of 
this chapter''.
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                (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 1091(a)(5) of this title in the year preceding 
            the year for which a student is seeking a loan under part B 
            of subchapter IV of this chapter; 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 subchapter 
            IV of this chapter; 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 
            1001 of this title.

        (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 
        subchapter IV of this chapter.

        (D) Special rule

            If, pursuant to this paragraph, an institution loses 
        eligibility to participate in the programs under subchapter IV 
        of this chapter 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 \1\ 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 2471(4)(C) of 
        this title; \2\
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    \2\ See References in Text note below.
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            (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 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 subchapter IV of 
        this chapter and part C of subchapter I of chapter 34 of title 
        42, or has been judicially determined to have committed fraud 
        involving funds under subchapter IV of this chapter and part C 
        of subchapter I of chapter 34 of title 42.

                          (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 G of subchapter IV of this chapter.

                       (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 subchapter IV of this chapter and part C of subchapter I 
    of chapter 34 of title 42 as a result of an action pursuant to part 
    G of subchapter IV of this chapter.

(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 1001(a) of this title;
            (C) does not meet the requirement of paragraph (4) of 
        section 1001(a) of this title;
            (D) is accredited by a nationally recognized accrediting 
        agency or association recognized by the Secretary pursuant to 
        part G of subchapter IV of this chapter;
            (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 
        subchapter IV of this chapter and part C of subchapter I of 
        chapter 34 of title 42, 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 1001(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

                       (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 1001(a) of this title; 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 1001(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.

(Pub. L. 89-329, title I, Sec. 102, as added Pub. L. 105-244, title I, 
Sec. 101(a), Oct. 7, 1998, 112 Stat. 1586.)

                       References in Text

    Section 2471(4)(C) of this title, referred to in subsec. (a)(3)(A), 
was omitted in the general amendment of chapter 44 (Sec. 2301 et seq.) 
of this title by Pub. L. 105-332, Sec. 1(b), Oct. 31, 1998, 112 Stat. 
3076.


                            Prior Provisions

    Provisions similar to this section were contained in section 1088(a) 
to (c) of this title prior to repeal by Pub. L. 105-244.
    A prior section 1002, Pub. L. 89-329, title I, Sec. 102, as added 
Pub. L. 102-325, title I, Sec. 101, July 23, 1992, 106 Stat. 459, 
related to partnership agreements required for grant eligibility, prior 
to the general amendment of this subchapter by Pub. L. 105-244.
    Another prior section 1002, Pub. L. 89-329, title I, Sec. 102, as 
added Pub. L. 99-498, title I, Sec. 101, Oct. 17, 1986, 100 Stat. 1278, 
defined terms ``continuing education'', ``adult learner'', ``eligible 
institution'', and ``qualified entity'', prior to the general amendment 
of this subchapter by Pub. L. 102-325.
    Another prior section 1002, Pub. L. 89-329, title I, Sec. 102, as 
added Pub. L. 96-374, title I, Sec. 101(a), Oct. 3, 1980, 94 Stat. 1374, 
provided for establishment of Commission on National Development in 
Postsecondary Education, prior to the general amendment of this 
subchapter by Pub. L. 99-498.
    Another prior section 1002, Pub. L. 89-329, title I, Sec. 102, Nov. 
8, 1965, 79 Stat. 1219; Pub. L. 94-482, title I, Sec. 101(b)(1), (g)(2), 
Oct. 12, 1976, 90 Stat. 2083, 2086, defined the terms ``community 
service program'', ``continuing education program'', and ``resource 
materials sharing programs'', prior to the general amendment of this 
subchapter by Pub. L. 96-374.

                  Section Referred to in Other Sections

    This section is referred to in sections 1001, 1011c, 1078-11, 1085, 
1093, 1094, 1099b, 1099c, 1099c-2, 2373, 6103 of this title; title 29 
section 2801; title 42 sections 292d, 12604.
