 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1094. Program participation agreements


(a) Required for programs of assistance; contents

    In order to be an eligible institution for the purposes of any 
program authorized under this subchapter and part C of subchapter I of 
chapter 34 of title 42, an institution must be an institution of higher 
education or an eligible institution (as that term is defined for the 
purpose of that program) and shall, except with respect to a program 
under subpart 4 of part A of this subchapter, enter into a program 
participation agreement with the Secretary. The agreement shall 
condition the initial and continuing eligibility of an institution to 
participate in a program upon compliance with the following 
requirements:
        (1) The institution will use funds received by it for any 
    program under this subchapter and part C of subchapter I of chapter 
    34 of title 42 and any interest or other earnings thereon solely for 
    the purpose specified in and in accordance with the provision of 
    that program.
        (2) The institution shall not charge any student a fee for 
    processing or handling any application, form, or data required to 
    determine the student's eligibility for assistance under this 
    subchapter and part C of subchapter I of chapter 34 of title 42 or 
    the amount of such assistance.
        (3) The institution will establish and maintain such 
    administrative and fiscal procedures and records as may be necessary 
    to ensure proper and efficient administration of funds received from 
    the Secretary or from students under this subchapter and part C of 
    subchapter I of chapter 34 of title 42, together with assurances 
    that the institution will provide, upon request and in a timely 
    fashion, information relating to the administrative capability and 
    financial responsibility of the institution to--
            (A) the Secretary;
            (B) the appropriate guaranty agency; and
            (C) the appropriate accrediting agency or association.

        (4) The institution will comply with the provisions of 
    subsection (c) of this section and the regulations prescribed under 
    that subsection, relating to fiscal eligibility.
        (5) The institution will submit reports to the Secretary and, in 
    the case of an institution participating in a program under part B 
    or part D of this subchapter, to holders of loans made to the 
    institution's students under such parts at such times and containing 
    such information as the Secretary may reasonably require to carry 
    out the purpose of this subchapter and part C of subchapter I of 
    chapter 34 of title 42.
        (6) The institution will not provide any student with any 
    statement or certification to any lender under part B of this 
    subchapter that qualifies the student for a loan or loans in excess 
    of the amount that student is eligible to borrow in accordance with 
    sections 1075(a), 1078(a)(2), and 1078(b)(1)(A) and (B) of this 
    title.
        (7) The institution will comply with the requirements of section 
    1092 of this title.
        (8) In the case of an institution that advertises job placement 
    rates as a means of attracting students to enroll in the 
    institution, the institution will make available to prospective 
    students, at or before the time of application (A) the most recent 
    available data concerning employment statistics, graduation 
    statistics, and any other information necessary to substantiate the 
    truthfulness of the advertisements, and (B) relevant State licensing 
    requirements of the State in which such institution is located for 
    any job for which the course of instruction is designed to prepare 
    such prospective students.
        (9) In the case of an institution participating in a program 
    under part B or C of this subchapter, the institution will inform 
    all eligible borrowers enrolled in the institution about the 
    availability and eligibility of such borrowers for State grant 
    assistance from the State in which the institution is located, and 
    will inform such borrowers from another State of the source for 
    further information concerning such assistance from that State.
        (10) The institution certifies that it has in operation a drug 
    abuse prevention program that is determined by the institution to be 
    accessible to any officer, employee, or student at the institution.
        (11) In the case of any institution whose students receive 
    financial assistance pursuant to section 1091(d) of this title, the 
    institution will make available to such students a program proven 
    successful in assisting students in obtaining a certificate of high 
    school equivalency.
        (12) The institution certifies that--
            (A) the institution has established a campus security 
        policy; and
            (B) the institution has complied with the disclosure 
        requirements of section 1092(f) of this title.

        (13) The institution will not deny any form of Federal financial 
    aid to any student who meets the eligibility requirements of this 
    subchapter and part C of subchapter I of chapter 34 of title 42 on 
    the grounds that the student is participating in a program of study 
    abroad approved for credit by the institution.
        (14)(A) The institution, in order to participate as an eligible 
    institution under part B or C of this subchapter, will develop a 
    Default Management Plan for approval by the Secretary as part of its 
    initial application for certification as an eligible institution and 
    will implement such Plan for two years thereafter.
        (B) Any institution of higher education which changes ownership 
    and any eligible institution which changes its status as a parent or 
    subordinate institution shall, in order to participate as an 
    eligible institution under part B or C of this subchapter, develop a 
    Default Management Plan for approval by the Secretary and implement 
    such Plan for two years after its change of ownership or status.
        (C) This paragraph shall not apply in the case of an institution 
    in which (i) neither the parent nor the subordinate institution has 
    a cohort default rate in excess of 10 percent, and (ii) the new 
    owner of such parent or subordinate institution does not, and has 
    not, owned any other institution with a cohort default rate in 
    excess of 10 percent.
        (15) The institution acknowledges the authority of the 
    Secretary, guaranty agencies, lenders, accrediting agencies, the 
    Secretary of Veterans Affairs, and the State agencies under subpart 
    1 of part G of this subchapter to share with each other any 
    information pertaining to the institution's eligibility to 
    participate in programs under this subchapter and part C of 
    subchapter I of chapter 34 of title 42 or any information on fraud 
    and abuse.
        (16)(A) The institution will not knowingly employ an individual 
    in a capacity that involves the administration of programs under 
    this subchapter and part C of subchapter I of chapter 34 of title 
    42, or the receipt of program funds under this subchapter and part C 
    of subchapter I of chapter 34 of title 42, who 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 
    or contract with an institution or third party servicer that has 
    been terminated under section 1082 of this title involving the 
    acquisition, use, or expenditure of funds under this subchapter and 
    part C of subchapter I of chapter 34 of title 42, or who 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.
        (B) The institution will not knowingly contract with or employ 
    any individual, agency, or organization that has been, or whose 
    officers or employees have been--
            (i) convicted of, or 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
            (ii) judicially determined to have committed fraud involving 
        funds under this subchapter and part C of subchapter I of 
        chapter 34 of title 42.

        (17) The institution will complete surveys conducted as a part 
    of the Integrated Postsecondary Education Data System (IPEDS) or any 
    other Federal postsecondary institution data collection effort, as 
    designated by the Secretary, in a timely manner and to the 
    satisfaction of the Secretary.
        (18) The institution will meet the requirements established 
    pursuant to section 1092(g) of this title.
        (19) The institution will not impose any penalty, including the 
    assessment of late fees, the denial of access to classes, libraries, 
    or other institutional facilities, or the requirement that the 
    student borrow additional funds, on any student because of the 
    student's inability to meet his or her financial obligations to the 
    institution as a result of the delayed disbursement of the proceeds 
    of a loan made under this subchapter and part C of subchapter I of 
    chapter 34 of title 42 due to compliance with the provisions of this 
    subchapter and part C of subchapter I of chapter 34 of title 42, or 
    delays attributable to the institution.
        (20) The institution will not provide any commission, bonus, or 
    other incentive payment based directly or indirectly on success in 
    securing enrollments or financial aid to any persons or entities 
    engaged in any student recruiting or admission activities or in 
    making decisions regarding the award of student financial 
    assistance, except that this paragraph shall not apply to the 
    recruitment of foreign students residing in foreign countries who 
    are not eligible to receive Federal student assistance.
        (21) The institution will meet the requirements established by 
    the Secretary and accrediting agencies or associations, and will 
    provide evidence to the Secretary that the institution has the 
    authority to operate within a State.
        (22) The institution will comply with the refund policy 
    established pursuant to section 1091b of this title.
        (23)(A) The institution, if located in a State to which section 
    1973gg-2(b) \1\ of title 42 does not apply, will make a good faith 
    effort to distribute a mail voter registration form, requested and 
    received from the State, to each student enrolled in a degree or 
    certificate program and physically in attendance at the institution, 
    and to make such forms widely available to students at the 
    institution.
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    \1\ See References in Text note below.
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        (B) The institution shall request the forms from the State 120 
    days prior to the deadline for registering to vote within the State. 
    If an institution has not received a sufficient quantity of forms to 
    fulfill this section from the State within 60 days prior to the 
    deadline for registering to vote in the State, the institution shall 
    not be held liable for not meeting the requirements of this section 
    during that election year.
        (C) This paragraph shall apply to general and special elections 
    for Federal office, as defined in section 431(3) of title 2, and to 
    the elections for Governor or other chief executive within such 
    State).\2\
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    \2\ So in original. The closing parenthesis probably should not 
appear.
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(b) Hearings

    (1) An institution that has received written notice of a final audit 
or program review determination and that desires to have such 
determination reviewed by the Secretary shall submit to the Secretary a 
written request for review not later than 45 days after receipt of 
notification of the final audit or program review determination.
    (2) The Secretary shall, upon receipt of written notice under 
paragraph (1), arrange for a hearing and notify the institution within 
30 days of receipt of such notice the date, time, and place of such 
hearing. Such hearing shall take place not later than 120 days from the 
date upon which the Secretary notifies the institution.

(c) Audits; financial responsibility; enforcement of standards

    (1) Notwithstanding any other provisions of this subchapter and part 
C of subchapter I of chapter 34 of title 42, the Secretary shall 
prescribe such regulations as may be necessary to provide for--
        (A)(i) except as provided in clauses (ii) and (iii), a financial 
    audit of an eligible institution with regard to the financial 
    condition of the institution in its entirety, and a compliance audit 
    of such institution with regard to any funds obtained by it under 
    this subchapter and part C of subchapter I of chapter 34 of title 42 
    or obtained from a student or a parent who has a loan insured or 
    guaranteed by the Secretary under this subchapter and part C of 
    subchapter I of chapter 34 of title 42, on at least an annual basis 
    and covering the period since the most recent audit, conducted by a 
    qualified, independent organization or person in accordance with 
    standards established by the Comptroller General for the audit of 
    governmental organizations, programs, and functions, and as 
    prescribed in regulations of the Secretary, the results of which 
    shall be submitted to the Secretary and shall be available to 
    cognizant guaranty agencies, eligible lenders, State agencies, and 
    the appropriate State agency notifying the Secretary under subpart 1 
    of part G of this subchapter;
        (ii) with regard to an eligible institution which is audited 
    under chapter 75 of title 31, deeming such audit to satisfy the 
    requirements of clause (i) for the period covered by such audit; or
        (iii) at the discretion of the Secretary, with regard to an 
    eligible institution (other than an eligible institution described 
    in section 1002(a)(1)(C) of this title) that has obtained less than 
    $200,000 in funds under this subchapter and part C of subchapter I 
    of chapter 34 of title 42 during each of the 2 award years that 
    precede the audit period and submits a letter of credit payable to 
    the Secretary equal to not less than \1/2\ of the annual potential 
    liabilities of such institution as determined by the Secretary, 
    deeming an audit conducted every 3 years to satisfy the requirements 
    of clause (i), except for the award year immediately preceding 
    renewal of the institution's eligibility under section 1099c(g) of 
    this title;
        (B) in matters not governed by specific program provisions, the 
    establishment of reasonable standards of financial responsibility 
    and appropriate institutional capability for the administration by 
    an eligible institution of a program of student financial aid under 
    this subchapter and part C of subchapter I of chapter 34 of title 
    42, including any matter the Secretary deems necessary to the sound 
    administration of the financial aid programs, such as the pertinent 
    actions of any owner, shareholder, or person exercising control over 
    an eligible institution;
        (C)(i) except as provided in clause (ii), a compliance audit of 
    a third party servicer (other than with respect to the servicer's 
    functions as a lender if such functions are otherwise audited under 
    this part and such audits meet the requirements of this clause), 
    with regard to any contract with an eligible institution, guaranty 
    agency, or lender for administering or servicing any aspect of the 
    student assistance programs under this subchapter and part C of 
    subchapter I of chapter 34 of title 42, at least once every year and 
    covering the period since the most recent audit, conducted by a 
    qualified, independent organization or person in accordance with 
    standards established by the Comptroller General for the audit of 
    governmental organizations, programs, and functions, and as 
    prescribed in regulations of the Secretary, the results of which 
    shall be submitted to the Secretary; or
        (ii) with regard to a third party servicer that is audited under 
    chapter 75 of title 31, such audit shall be deemed to satisfy the 
    requirements of clause (i) for the period covered by such audit;
        (D)(i) a compliance audit of a secondary market with regard to 
    its transactions involving, and its servicing and collection of, 
    loans made under this subchapter and part C of subchapter I of 
    chapter 34 of title 42, at least once a year and covering the period 
    since the most recent audit, conducted by a qualified, independent 
    organization or person in accordance with standards established by 
    the Comptroller General for the audit of governmental organizations, 
    programs, and functions, and as prescribed in regulations of the 
    Secretary, the results of which shall be submitted to the Secretary; 
    or
        (ii) with regard to a secondary market that is audited under 
    chapter 75 of title 31, such audit shall be deemed to satisfy the 
    requirements of clause (i) for the period covered by the audit;
        (E) the establishment, by each eligible institution under part B 
    of this subchapter responsible for furnishing to the lender the 
    statement required by section 1078(a)(2)(A)(i) of this title, of 
    policies and procedures by which the latest known address and 
    enrollment status of any student who has had a loan insured under 
    this part and who has either formally terminated his enrollment, or 
    failed to re-enroll on at least a half-time basis, at such 
    institution, shall be furnished either to the holder (or if unknown, 
    the insurer) of the note, not later than 60 days after such 
    termination or failure to re-enroll;
        (F) the limitation, suspension, or termination of the 
    participation in any program under this subchapter and part C of 
    subchapter I of chapter 34 of title 42 of an eligible institution, 
    or the imposition of a civil penalty under paragraph (2)(B) whenever 
    the Secretary has determined, after reasonable notice and 
    opportunity for hearing, that such institution has violated or 
    failed to carry out any provision of this subchapter and part C of 
    subchapter I of chapter 34 of title 42, any regulation prescribed 
    under this subchapter and part C of subchapter I of chapter 34 of 
    title 42, or any applicable special arrangement, agreement, or 
    limitation, except that no period of suspension under this section 
    shall exceed 60 days unless the institution and the Secretary agree 
    to an extension or unless limitation or termination proceedings are 
    initiated by the Secretary within that period of time;
        (G) an emergency action against an institution, under which the 
    Secretary shall, effective on the date on which a notice and 
    statement of the basis of the action is mailed to the institution 
    (by registered mail, return receipt requested), withhold funds from 
    the institution or its students and withdraw the institution's 
    authority to obligate funds under any program under this subchapter 
    and part C of subchapter I of chapter 34 of title 42, if the 
    Secretary--
            (i) receives information, determined by the Secretary to be 
        reliable, that the institution is violating any provision of 
        this subchapter and part C of subchapter I of chapter 34 of 
        title 42, any regulation prescribed under this subchapter and 
        part C of subchapter I of chapter 34 of title 42, or any 
        applicable special arrangement, agreement, or limitation,
            (ii) determines that immediate action is necessary to 
        prevent misuse of Federal funds, and
            (iii) determines that the likelihood of loss outweighs the 
        importance of the procedures prescribed under subparagraph (D) 
        for limitation, suspension, or termination,

    except that an emergency action shall not exceed 30 days unless 
    limitation, suspension, or termination proceedings are initiated by 
    the Secretary against the institution within that period of time, 
    and except that the Secretary shall provide the institution an 
    opportunity to show cause, if it so requests, that the emergency 
    action is unwarranted;
        (H) the limitation, suspension, or termination of the 
    eligibility of a third party servicer to contract with any 
    institution to administer any aspect of an institution's student 
    assistance program under this subchapter and part C of subchapter I 
    of chapter 34 of title 42, or the imposition of a civil penalty 
    under paragraph (2)(B), whenever the Secretary has determined, after 
    reasonable notice and opportunity for a hearing, that such 
    organization, acting on behalf of an institution, has violated or 
    failed to carry out any provision of this subchapter and part C of 
    subchapter I of chapter 34 of title 42, any regulation prescribed 
    under this subchapter and part C of subchapter I of chapter 34 of 
    title 42, or any applicable special arrangement, agreement, or 
    limitation, except that no period of suspension under this 
    subparagraph shall exceed 60 days unless the organization and the 
    Secretary agree to an extension, or unless limitation or termination 
    proceedings are initiated by the Secretary against the individual or 
    organization within that period of time; and
        (I) an emergency action against a third party servicer that has 
    contracted with an institution to administer any aspect of the 
    institution's student assistance program under this subchapter and 
    part C of subchapter I of chapter 34 of title 42, under which the 
    Secretary shall, effective on the date on which a notice and 
    statement of the basis of the action is mailed to such individual or 
    organization (by registered mail, return receipt requested), 
    withhold funds from the individual or organization and withdraw the 
    individual or organization's authority to act on behalf of an 
    institution under any program under this subchapter and part C of 
    subchapter I of chapter 34 of title 42, if the Secretary--
            (i) receives information, determined by the Secretary to be 
        reliable, that the individual or organization, acting on behalf 
        of an institution, is violating any provision of this subchapter 
        and part C of subchapter I of chapter 34 of title 42, any 
        regulation prescribed under this subchapter and part C of 
        subchapter I of chapter 34 of title 42, or any applicable 
        special arrangement, agreement, or limitation,
            (ii) determines that immediate action is necessary to 
        prevent misuse of Federal funds, and
            (iii) determines that the likelihood of loss outweighs the 
        importance of the procedures prescribed under subparagraph (F), 
        for limitation, suspension, or termination,

    except that an emergency action shall not exceed 30 days unless the 
    limitation, suspension, or termination proceedings are initiated by 
    the Secretary against the individual or organization within that 
    period of time, and except that the Secretary shall provide the 
    individual or organization an opportunity to show cause, if it so 
    requests, that the emergency action is unwarranted.

    (2) If an individual who, or entity that, exercises substantial 
control, as determined by the Secretary in accordance with the 
definition of substantial control in subpart 3 of part G of this 
subchapter, over one or more institutions participating in any program 
under this subchapter and part C of subchapter I of chapter 34 of title 
42, or, for purposes of paragraphs (1)(H) and (I), over one or more 
organizations that contract with an institution to administer any aspect 
of the institution's student assistance program under this subchapter 
and part C of subchapter I of chapter 34 of title 42, is determined to 
have committed one or more violations of the requirements of any program 
under this subchapter and part C of subchapter I of chapter 34 of title 
42, or has been suspended or debarred in accordance with the regulations 
of the Secretary, the Secretary may use such determination, suspension, 
or debarment as the basis for imposing an emergency action on, or 
limiting, suspending, or terminating, in a single proceeding, the 
participation of any or all institutions under the substantial control 
of that individual or entity.
    (3)(A) Upon determination, after reasonable notice and opportunity 
for a hearing, that an eligible institution has engaged in substantial 
misrepresentation of the nature of its educational program, its 
financial charges, or the employability of its graduates, the Secretary 
may suspend or terminate the eligibility status for any or all programs 
under this subchapter and part C of subchapter I of chapter 34 of title 
42 of any otherwise eligible institution, in accordance with procedures 
specified in paragraph (1)(D) of this subsection, until the Secretary 
finds that such practices have been corrected.
    (B)(i) Upon determination, after reasonable notice and opportunity 
for a hearing, that an eligible institution--
        (I) has violated or failed to carry out any provision of this 
    subchapter and part C of subchapter I of chapter 34 of title 42 or 
    any regulation prescribed under this subchapter and part C of 
    subchapter I of chapter 34 of title 42; or
        (II) has engaged in substantial misrepresentation of the nature 
    of its educational program, its financial charges, and the 
    employability of its graduates,

the Secretary may impose a civil penalty upon such institution of not to 
exceed $25,000 for each violation or misrepresentation.
    (ii) Any civil penalty may be compromised by the Secretary. In 
determining the amount of such penalty, or the amount agreed upon in 
compromise, the appropriateness of the penalty to the size of the 
institution of higher education subject to the determination, and the 
gravity of the violation, failure, or misrepresentation shall be 
considered. The amount of such penalty, when finally determined, or the 
amount agreed upon in compromise, may be deducted from any sums owing by 
the United States to the institution charged.
    (4) The Secretary shall publish a list of State agencies which the 
Secretary determines to be reliable authority as to the quality of 
public postsecondary vocational education in their respective States for 
the purpose of determining eligibility for all Federal student 
assistance programs.
    (5) The Secretary shall make readily available to appropriate 
guaranty agencies, eligible lenders, State agencies notifying the 
Secretary under subpart 1 of part G of this subchapter, and accrediting 
agencies or associations the results of the audits of eligible 
institutions conducted pursuant to paragraph (1)(A).
    (6) The Secretary is authorized to provide any information collected 
as a result of audits conducted under this section, together with audit 
information collected by guaranty agencies, to any Federal or State 
agency having responsibilities with respect to student financial 
assistance, including those referred to in subsection (a)(15) of this 
section.
    (7) Effective with respect to any audit conducted under this 
subsection after December 31, 1988, if, in the course of conducting any 
such audit, the personnel of the Department of Education discover, or 
are informed of, grants or other assistance provided by an institution 
in accordance with this subchapter and part C of subchapter I of chapter 
34 of title 42 for which the institution has not received funds 
appropriated under this subchapter and part C of subchapter I of chapter 
34 of title 42 (in the amount necessary to provide such assistance), 
including funds for which reimbursement was not requested prior to such 
discovery or information, such institution shall be permitted to offset 
that amount against any sums determined to be owed by the institution 
pursuant to such audit, or to receive reimbursement for that amount (if 
the institution does not owe any such sums).

(d) ``Eligible institution'' defined

    For the purpose of this section, the term ``eligible institution'' 
means any such institution described in section 1002 of this title.

(e) Construction

    Nothing in the amendments made by the Higher Education Amendments of 
1992 shall be construed to prohibit an institution from recording, at 
the cost of the institution, a hearing referred to in subsection (b)(2), 
subsection (c)(1)(D), or subparagraph (A) or (B)(i) of subsection 
(c)(2), of this section to create a record of the hearing, except the 
unavailability of a recording shall not serve to delay the completion of 
the proceeding. The Secretary shall allow the institution to use any 
reasonable means, including stenographers, of recording the hearing.

(Pub. L. 89-329, title IV, Sec. 487, as added Pub. L. 99-498, title IV, 
Sec. 407(a), Oct. 17, 1986, 100 Stat. 1488; amended Pub. L. 101-239, 
title II, Secs. 2003(c)(2), 2006(c), Dec. 19, 1989, 103 Stat. 2114, 
2118; Pub. L. 101-542, title II, Sec. 205, Nov. 8, 1990, 104 Stat. 2387; 
Pub. L. 102-26, Sec. 2(c)(3), Apr. 9, 1991, 105 Stat. 124; Pub. L. 102-
325, title IV, Sec. 490, July 23, 1992, 106 Stat. 625; Pub. L. 103-208, 
Sec. 2(h)(42), (43), Dec. 20, 1993, 107 Stat. 2478; Pub. L. 105-244, 
title I, Sec. 102(b)(4), title IV, Sec. 489(a), (b)(1), (c), Oct. 7, 
1998, 112 Stat. 1622, 1750, 1751; Pub. L. 106-113, div. B, 
Sec. 1000(a)(4) [title III, Sec. 314], Nov. 29, 1999, 113 Stat. 1535, 
1501A-266.)

                       References in Text

    Section 1973gg-2(b) of title 42, referred to in subsec. (a)(23)(A), 
was in the original a reference to section 4(b) of the National Voter 
Registration Act (42 U.S.C. 1973gg-2(b)), and has been translated as if 
it referred to section 4(b) of the National Voter Registration Act of 
1993, Pub. L. 103-31, to reflect the probable intent of Congress.
    The Higher Education Amendments of 1992, referred to in subsec. (e), 
is Pub. L. 102-325, July 23, 1992, 106 Stat. 448. For complete 
classification of this Act to the Code, see Short Title of 1992 
Amendment note set out under section 1001 of this title and Tables.


                            Prior Provisions

    A prior section 1094, Pub. L. 89-329, title IV, Sec. 487, as added 
Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat. 1451; 
amended Pub. L. 99-272, title XVI, Sec. 16034, Apr. 7, 1986, 100 Stat. 
356, related to program participation agreements, prior to the general 
revision of this part by Pub. L. 99-498.


                               Amendments

    1999--Subsec. (a)(23)(C). Pub. L. 106-113 amended subpar. (C) 
generally. Prior to amendment, subpar. (C) read as follows: ``This 
paragraph shall apply to elections as defined in section 431(1) of title 
2, and includes the election for Governor or other chief executive 
within such State).''
    1998--Subsec. (a)(3)(B) to (D). Pub. L. 105-244, Sec. 489(a)(1), 
redesignated subpars. (C) and (D) as (B) and (C), respectively, and 
struck out former subpar. (B) which read as follows: ``the appropriate 
State review entity designated under subpart 1 of part G of this 
subchapter;''.
    Subsec. (a)(4). Pub. L. 105-244, Sec. 489(a)(2), substituted 
``subsection (c)'' for ``subsection (b)''.
    Subsec. (a)(9). Pub. L. 105-244, Sec. 489(a)(3), substituted ``part 
B or C'' for ``part B''.
    Subsec. (a)(14)(A), (B). Pub. L. 105-244, Sec. 489(a)(4)(A), (B), 
substituted ``part B or C'' for ``part B''.
    Subsec. (a)(14)(C). Pub. L. 105-244, Sec. 489(a)(4)(C), added 
subpar. (C).
    Subsec. (a)(15). Pub. L. 105-244, Sec. 489(a)(5), substituted ``the 
State agencies'' for ``State review entities''.
    Subsec. (a)(18). Pub. L. 105-244, Sec. 489(a)(6), amended par. (18) 
generally. Prior to amendment, par. (18) required institutions to cause 
an annual compilation to be prepared of revenues and expenses relating 
to men's and women's sports.
    Subsec. (a)(21). Pub. L. 105-244, Sec. 489(a)(7), amended par. (21) 
generally. Prior to amendment, par. (21) read as follows: ``The 
institution will meet the requirements established by the Secretary, 
State postsecondary review entities, and accrediting agencies pursuant 
to part G of this subchapter.''
    Subsec. (a)(23). Pub. L. 105-244, Sec. 489(b)(1), added par. (23).
    Subsec. (c)(1)(A)(i). Pub. L. 105-244, Sec. 489(c)(1)(A), 
substituted ``clauses (ii) and (iii)'' for ``clause (ii)'' and 
``appropriate State agency notifying the Secretary under'' for ``State 
review entities referred to in'' and struck out ``or'' after semicolon.
    Subsec. (c)(1)(A)(iii). Pub. L. 105-244, Sec. 489(c)(1)(B), (C), 
added cl. (iii).
    Subsec. (c)(4). Pub. L. 105-244, Sec. 489(c)(2), struck out ``, 
after consultation with each State review entity designated under 
subpart 1 of part G of this subchapter,'' after ``shall publish''.
    Subsec. (c)(5). Pub. L. 105-244, Sec. 489(c)(3), substituted ``State 
agencies notifying the Secretary'' for ``State review entities 
designated''.
    Subsec. (d). Pub. L. 105-244, Sec. 102(b)(4), substituted ``section 
1002'' for ``section 1088''.
    1993--Subsec. (a)(2). Pub. L. 103-208, Sec. 2(h)(42), struck out ``, 
or for completing or handling the Federal Student Assistance Report'' 
after ``amount of such assistance''.
    Subsec. (c)(1)(F). Pub. L. 103-208, Sec. 2(h)(43), substituted 
``participation in any program under this subchapter and part C of 
subchapter I of chapter 34 of title 42 of an eligible institution,'' for 
``eligibility for any program under this subchapter and part C of 
subchapter I of chapter 34 of title 42 of any otherwise eligible 
institution,''.
    1992--Subsec. (a). Pub. L. 102-325, Sec. 490(f)(1), substituted 
``subpart 4'' for ``subpart 3''.
    Subsec. (a)(2). Pub. L. 102-325, Sec. 490(f)(2), struck out 
``provided for in section 1090(e) of this title'' after ``Report''.
    Subsec. (a)(3). Pub. L. 102-325, Sec. 490(a)(1), inserted before 
period at end ``, together with assurances that the institution will 
provide, upon request and in a timely fashion, information relating to 
the administrative capability and financial responsibility of the 
institution to--'' and added subpars. (A) to (D).
    Subsec. (a)(8). Pub. L. 102-325, Sec. 490(a)(2), substituted 
``application (A)'' for ``application,'' inserted ``, and'' after 
``advertisements'', and added subpar. (B).
    Subsec. (a)(13) to (22). Pub. L. 102-325, Sec. 490(a)(3), added 
pars. (13) to (22).
    Subsec. (b)(2). Pub. L. 102-325, Sec. 490(b)(1), struck out ``on the 
record'' after ``for a hearing''.
    Subsec. (c)(1). Pub. L. 102-325, Sec. 490(b)(2)(A), substituted 
``shall'' for ``is authorized to'' in introductory provisions.
    Subsec. (c)(1)(A)(i). Pub. L. 102-325, Sec. 490(c), substituted ``a 
financial audit of an eligible institution with regard to the financial 
condition of the institution in its entirety, and a compliance audit of 
such institution'' for ``a financial and compliance audit of an eligible 
institution,'' and ``on at least an annual basis'' for ``at least once 
every 2 years'' and inserted ``and shall be available to cognizant 
guaranty agencies, eligible lenders, State agencies, and the State 
review entities referred to in subpart 1 of part G of this subchapter'' 
after ``submitted to the Secretary''.
    Subsec. (c)(1)(B). Pub. L. 102-325, Sec. 490(d)(1), inserted before 
semicolon at end ``, including any matter the Secretary deems necessary 
to the sound administration of the financial aid programs, such as the 
pertinent actions of any owner, shareholder, or person exercising 
control over an eligible institution''.
    Subsec. (c)(1)(C). Pub. L. 102-325, Sec. 490(d)(3), added subpar. 
(C). Former subpar. (C) redesignated (E).
    Subsec. (c)(1)(D). Pub. L. 102-325, Sec. 490(d)(3), added subpar. 
(D). Former subpar. (D) redesignated (F).
    Pub. L. 102-325, Sec. 490(b)(2)(B), struck out ``on the record'' 
after ``opportunity for hearing''.
    Subsec. (c)(1)(E). Pub. L. 102-325, Sec. 490(d)(2), redesignated 
subpar. (C) as (E). Former subpar. (E) redesignated (G).
    Subsec. (c)(1)(F). Pub. L. 102-325, Sec. 490(d)(2), redesignated 
subpar. (D) as (F). Former subpar. (F) redesignated (H).
    Pub. L. 102-325, Sec. 490(b)(2)(C), struck out ``on the record'' 
after ``opportunity for a hearing''.
    Subsec. (c)(1)(G). Pub. L. 102-325, Sec. 490(d)(2), redesignated 
subpar. (E) as (G). Former subpar. (G) redesignated (I).
    Subsec. (c)(1)(H). Pub. L. 102-325, Sec. 490(d)(2), (4), 
redesignated subpar. (F) as (H) and substituted ``a third party 
servicer'' for ``an individual or an organization''.
    Subsec. (c)(1)(I). Pub. L. 102-325, Sec. 490(d)(2), (5), 
redesignated subpar. (G) as (I) and substituted ``a third party 
servicer'' for ``an individual or an organization''.
    Subsec. (c)(2). Pub. L. 102-325, Sec. 490(d)(8), added par. (2). 
Former par. (2) redesignated (3).
    Pub. L. 102-325, Sec. 490(b)(2)(D), struck out ``on the record'' 
after ``opportunity for a hearing'' in subpars. (A) and (B)(i).
    Subsec. (c)(3). Pub. L. 102-325, Sec. 490(d)(7), redesignated par. 
(2) as (3). Former par. (3) redesignated (4).
    Pub. L. 102-325, Sec. 490(d)(6), inserted ``, after consultation 
with each State review entity designated under subpart 1 of part G of 
this subchapter,'' after ``shall publish''.
    Subsec. (c)(4). Pub. L. 102-325, Sec. 490(d)(7), redesignated par. 
(3) as (4).
    Subsec. (c)(5) to (7). Pub. L. 102-325, Sec. 490(d)(9), added pars. 
(5) to (7).
    Subsec. (d). Pub. L. 102-325, Sec. 490(f)(3), substituted ``section 
1088'' for ``section 1085(a)''.
    Subsec. (e). Pub. L. 102-325, Sec. 490(e), added subsec. (e).
    1991--Subsec. (a)(11). Pub. L. 102-26 substituted ``whose students 
receive financial assistance pursuant to section 1091(d) of this 
title,'' for ``which admits students on the basis of their ability to 
benefit from the education or training provided by such institution (as 
determined under section 1091(d) of this title),''.
    1990--Subsec. (a)(12). Pub. L. 101-542 added par. (12).
    1989--Subsec. (a)(11). Pub. L. 101-239, Sec. 2003(c)(2), added par. 
(11).
    Subsec. (c)(1)(D). Pub. L. 101-239, Sec. 2006(c)(2), substituted ``, 
any regulation'' for ``or any regulation'' and inserted ``or any 
applicable special arrangement, agreement, or limitation,''.
    Subsec. (c)(1)(E) to (G). Pub. L. 101-239, Sec. 2006(c)(3), added 
subpars. (E) to (G).


                    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.


                    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 1051 of this title.


                    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 1989 Amendment

    Section 2003(c)(3) of Pub. L. 101-239 provided that: ``The 
amendments made by this subsection [amending this section and section 
1078-1 of this title] shall apply with respect to periods of enrollment 
beginning on or after January 1, 1990.''


                             Effective Date

    Section effective Oct. 17, 1986, except as otherwise provided, see 
section 2 of Pub. L. 99-498, set out as a note under section 1001 of 
this title.
    Subsec. (a)(10) of this section applicable only to periods of 
enrollment beginning on or after July 1, 1987, see section 407(b) of 
Pub. L. 99-498, set out as a note under section 1091 of this title.


                          Regulation Prohibited

    Pub. L. 105-244, title IV, Sec. 489(b)(2), Oct. 7, 1998, 112 Stat. 
1751, provided that: ``No officer of the executive branch is authorized 
to instruct the institution in the manner in which the amendment made by 
this subsection [amending this section] is carried out.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1015, 1027, 1070a-15, 1070b-
2, 1087c, 1087nn, 1087oo, 1087pp, 1087qq, 1087tt, 1091, 1092, 1096, 
1099c of this title; title 42 section 12604.
