 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1093. Distance education demonstration programs


(a) Purpose

    It is the purpose of this section--
        (1) to allow demonstration programs that are strictly monitored 
    by the Department of Education to test the quality and viability of 
    expanded distance education programs currently restricted under this 
    chapter;
        (2) to provide for increased student access to higher education 
    through distance education programs; and
        (3) to help determine--
            (A) the most effective means of delivering quality education 
        via distance education course offerings;
            (B) the specific statutory and regulatory requirements which 
        should be altered to provide greater access to high quality 
        distance education programs; and
            (C) the appropriate level of Federal assistance for students 
        enrolled in distance education programs.

(b) Demonstration programs authorized

                           (1) In general

        In accordance with the provisions of subsection (d) of this 
    section, the Secretary is authorized to select institutions of 
    higher education, systems of such institutions, or consortia of such 
    institutions for voluntary participation in a Distance Education 
    Demonstration Program that provides participating institutions with 
    the ability to offer distance education programs that do not meet 
    all or a portion of the sections or regulations described in 
    paragraph (2).

                             (2) Waivers

        The Secretary is authorized to waive for any institution of 
    higher education, system of institutions of higher education, or 
    consortium participating in a Distance Education Demonstration 
    Program, the requirements of section 1087ll(5) of this title as the 
    section relates to computer costs, sections 1088(a) and 1088(b) of 
    this title as such sections relate to requirements for a minimum 
    number of weeks of instruction, sections 1002(a)(3)(A), 
    1002(a)(3)(B), and 1091(l)(1) of this title, or one or more of the 
    regulations prescribed under this part or part E of this subchapter 
    which inhibit the operation of quality distance education programs.

                       (3) Eligible applicants

        (A) Eligible institutions

            Except as provided in subparagraphs (B), (C), and (D), only 
        an institution of higher education that is eligible to 
        participate in programs under this subchapter and part C of 
        subchapter I of chapter 34 of title 42 shall be eligible to 
        participate in the demonstration program authorized under this 
        section.

        (B) Prohibition

            An institution of higher education described in section 
        1002(a)(1)(C) of this title shall not be eligible to participate 
        in the demonstration program authorized under this section.

        (C) Special rule

            Subject to subparagraph (B), an institution of higher 
        education that meets the requirements of subsection (a) of 
        section 1002 of this title, other than the requirement of 
        paragraph (3)(A) or (3)(B) of such subsection, and that provides 
        a 2-year or 4-year program of instruction for which the 
        institution awards an associate or baccalaureate degree, shall 
        be eligible to participate in the demonstration program 
        authorized under this section.

        (D) Requirement

            Notwithstanding any other provision of this paragraph, 
        Western Governors University shall be considered eligible to 
        participate in the demonstration program authorized under this 
        section. In addition to the waivers described in paragraph (2), 
        the Secretary may waive the provisions of subchapter I of this 
        chapter and this part and part G of this subchapter for such 
        university that the Secretary determines to be appropriate 
        because of the unique characteristics of such university. In 
        carrying out the preceding sentence, the Secretary shall ensure 
        that adequate program integrity and accountability measures 
        apply to such university's participation in the demonstration 
        program authorized under this section.

(c) Application

                           (1) In general

        Each institution, system, or consortium of institutions desiring 
    to participate in a demonstration program under this section shall 
    submit an application to the Secretary at such time and in such 
    manner as the Secretary may require.

                            (2) Contents

        Each application shall include--
            (A) a description of the institution, system, or 
        consortium's consultation with a recognized accrediting agency 
        or association with respect to quality assurances for the 
        distance education programs to be offered;
            (B) a description of the statutory and regulatory 
        requirements described in subsection (b)(2) of this section or, 
        if applicable, subsection (b)(3)(D) of this section for which a 
        waiver is sought and the reasons for which the waiver is sought;
            (C) a description of the distance education programs to be 
        offered;
            (D) a description of the students to whom distance education 
        programs will be offered;
            (E) an assurance that the institution, system, or consortium 
        will offer full cooperation with the ongoing evaluations of the 
        demonstration program provided for in this section; and
            (F) such other information as the Secretary may require.

(d) Selection

                           (1) In general

        For the first year of the demonstration program authorized under 
    this section, the Secretary is authorized to select for 
    participation in the program not more than 15 institutions, systems 
    of institutions, or consortia of institutions. For the third year of 
    the demonstration program authorized under this section, the 
    Secretary may select not more than 35 institutions, systems, or 
    consortia, in addition to the institutions, systems, or consortia 
    selected pursuant to the preceding sentence, to participate in the 
    demonstration program if the Secretary determines that such 
    expansion is warranted based on the evaluations conducted in 
    accordance with subsections (f) and (g) of this section.

                         (2) Considerations

        In selecting institutions to participate in the demonstration 
    program in the first or succeeding years of the program, the 
    Secretary shall take into account--
            (A) the number and quality of applications received;
            (B) the Department's capacity to oversee and monitor each 
        institution's participation;
            (C) an institution's--
                (i) financial responsibility;
                (ii) administrative capability; and
                (iii) program or programs being offered via distance 
            education; and

            (D) ensuring the participation of a diverse group of 
        institutions with respect to size, mission, and geographic 
        distribution.

(e) Notification

    The Secretary shall make available to the public and to the 
Committee on Labor and Human Resources of the Senate and the Committee 
on Education and the Workforce of the House of Representatives a list of 
institutions, systems or consortia selected to participate in the 
demonstration program authorized by this section. Such notice shall 
include a listing of the specific statutory and regulatory requirements 
being waived for each institution, system or consortium and a 
description of the distance education courses to be offered.

(f) Evaluations and reports

                           (1) Evaluation

        The Secretary shall evaluate the demonstration programs 
    authorized under this section on an annual basis. Such evaluations 
    specifically shall review--
            (A) the extent to which the institution, system or 
        consortium has met the goals set forth in its application to the 
        Secretary, including the measures of program quality assurance;
            (B) the number and types of students participating in the 
        programs offered, including the progress of participating 
        students toward recognized certificates or degrees and the 
        extent to which participation in such programs increased;
            (C) issues related to student financial assistance for 
        distance education;
            (D) effective technologies for delivering distance education 
        course offerings; and
            (E) the extent to which statutory or regulatory requirements 
        not waived under the demonstration program present difficulties 
        for students or institutions.

                         (2) Policy analysis

        The Secretary shall review current policies and identify those 
    policies that present impediments to the development and use of 
    distance education and other nontraditional methods of expanding 
    access to education.

                             (3) Reports

        (A) In general

            Within 18 months of the initiation of the demonstration 
        program, the Secretary shall report to the Committee on Labor 
        and Human Resources of the Senate and the Committee on Education 
        and the Workforce of the House of Representatives with respect 
        to--
                (i) the evaluations of the demonstration programs 
            authorized under this section; and
                (ii) any proposed statutory changes designed to enhance 
            the use of distance education.

        (B) Additional reports

            The Secretary shall provide additional reports to the 
        Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives on an annual basis regarding--
                (i) the demonstration programs authorized under this 
            section; and
                (ii) the number and types of students receiving 
            assistance under this subchapter and part C of subchapter I 
            of chapter 34 of title 42 for instruction leading to a 
            recognized certificate, as provided for in section 
            1091(l)(1) of this title, including the progress of such 
            students toward recognized certificates and the degree to 
            which participation in such programs leading to such 
            certificates increased.

(g) Oversight

    In conducting the demonstration program authorized under this 
section, the Secretary shall, on a continuing basis--
        (1) assure compliance of institutions, systems or consortia with 
    the requirements of this subchapter and part C of subchapter I of 
    chapter 34 of title 42 (other than the sections and regulations that 
    are waived under subsections (b)(2) and (b)(3)(D) of this section);
        (2) provide technical assistance;
        (3) monitor fluctuations in the student population enrolled in 
    the participating institutions, systems or consortia; and
        (4) consult with appropriate accrediting agencies or 
    associations and appropriate State regulatory authorities.

(h) ``Distance education'' defined

    For the purpose of this section, the term ``distance education'' 
means an educational process that is characterized by the separation, in 
time or place, between instructor and student. Such term may include 
courses offered principally through the use of--
        (1) television, audio, or computer transmission, such as open 
    broadcast, closed circuit, cable, microwave, or satellite 
    transmission;
        (2) audio or computer conferencing;
        (3) video cassettes or discs; or
        (4) correspondence.

(Pub. L. 89-329, title IV, Sec. 486, as added Pub. L. 99-498, title IV, 
Sec. 407(a), Oct. 17, 1986, 100 Stat. 1487; amended Pub. L. 102-325, 
title IV, Sec. 489, July 23, 1992, 106 Stat. 624; Pub. L. 105-244, title 
IV, Sec. 488, Oct. 7, 1998, 112 Stat. 1746.)

                       References in Text

    This chapter, referred to in subsec. (a)(1), was in the original 
``this Act'', meaning Pub. L. 89-329, as amended, known as the Higher 
Education Act of 1965. For complete classification of this Act to the 
Code, see Short Title note set out under section 1001 of this title and 
Tables.


                            Prior Provisions

    A prior section 1093, Pub. L. 89-329, title IV, Sec. 486, as added 
Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat. 1450, 
related to training in financial aid and student support services, prior 
to the general revision of this part by Pub. L. 99-498.


                               Amendments

    1998--Pub. L. 105-244 amended section catchline and text generally. 
Prior to amendment, section authorized Secretary to make grants to 
nonprofit private organizations to provide training for student 
financial aid administrators and TRIO personnel.
    1992--Pub. L. 102-325 struck out ``and student support'' after 
``aid'' in section catchline and amended text generally, substituting 
present provisions for former subsec. (a) relating to program authority, 
subsec. (b) relating to use of funds, and subsec. (c) relating to 
authorization of appropriations.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.
