 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
                        Part G--Program Integrity
 
           subpart 3--eligibility and certification procedures
 
Sec. 1099c-1. Program review and data


(a) General authority

    In order to strengthen the administrative capability and financial 
responsibility provisions of this subchapter and part C of subchapter I 
of chapter 34 of title 42, the Secretary--
        (1) shall provide for the conduct of program reviews on a 
    systematic basis designed to include all institutions of higher 
    education participating in programs authorized by this subchapter 
    and part C of subchapter I of chapter 34 of title 42;
        (2) shall give priority for program review to institutions of 
    higher education that are--
            (A) institutions with a cohort default rate for loans under 
        part B of this subchapter in excess of 25 percent or which 
        places such institutions in the highest 25 percent of such 
        institutions;
            (B) institutions with a default rate in dollar volume for 
        loans under part B of this subchapter which places the 
        institutions in the highest 25 percent of such institutions;
            (C) institutions with a significant fluctuation in Federal 
        Stafford Loan volume, Federal Direct Stafford/Ford Loan volume, 
        or Federal Pell Grant award volume, or any combination thereof, 
        in the year for which the determination is made, compared to the 
        year prior to such year, that are not accounted for by changes 
        in the Federal Stafford Loan program, the Federal Direct 
        Stafford/Ford Loan program, or the Pell Grant program, or any 
        combination thereof;
            (D) institutions reported to have deficiencies or financial 
        aid problems by the State licensing or authorizing agency, or by 
        the appropriate accrediting agency or association;
            (E) institutions with high annual dropout rates; and
            (F) such other institutions that the Secretary determines 
        may pose a significant risk of failure to comply with the 
        administrative capability or financial responsibility provisions 
        of this subchapter and part C of subchapter I of chapter 34 of 
        title 42; and

        (3) shall establish and operate a central data base of 
    information on institutional accreditation, eligibility, and 
    certification that includes--
            (A) all relevant information available to the Department;
            (B) all relevant information made available by the Secretary 
        of Veterans Affairs;
            (C) all relevant information from accrediting agencies or 
        associations;
            (D) all relevant information available from a guaranty 
        agency; and
            (E) all relevant information available from States under 
        subpart 1 of this part.

(b) Special administrative rules

    In carrying out paragraphs (1) and (2) of subsection (a) of this 
section and any other relevant provisions of this subchapter and part C 
of subchapter I of chapter 34 of title 42, the Secretary shall--
        (1) establish guidelines designed to ensure uniformity of 
    practice in the conduct of program reviews of institutions of higher 
    education;
        (2) make available to each institution participating in programs 
    authorized under this subchapter and part C of subchapter I of 
    chapter 34 of title 42 complete copies of all review guidelines and 
    procedures used in program reviews;
        (3) permit the institution to correct or cure an administrative, 
    accounting, or recordkeeping error if the error is not part of a 
    pattern of error and there is no evidence of fraud or misconduct 
    related to the error;
        (4) base any civil penalty assessed against an institution of 
    higher education resulting from a program review or audit on the 
    gravity of the violation, failure, or misrepresentation; and
        (5) inform the appropriate State and accrediting agency or 
    association whenever the Secretary takes action against an 
    institution of higher education under this section, section 1099c of 
    this title, or section 1082 of this title.

(c) Data collection rules

    The Secretary shall develop and carry out a plan for the data 
collection responsibilities described in paragraph (3) of subsection (a) 
of this section. The Secretary shall make the information obtained under 
such paragraph (3) readily available to all institutions of higher 
education, guaranty agencies, States, and other organizations 
participating in the programs authorized by this subchapter and part C 
of subchapter I of chapter 34 of title 42.

(d) Training

    The Secretary shall provide training to personnel of the Department, 
including criminal investigative training, designed to improve the 
quality of financial and compliance audits and program reviews conducted 
under this subchapter and part C of subchapter I of chapter 34 of title 
42.

(e) Special rule

    The provisions of section 3403(b) of this title shall not apply to 
Secretarial determinations made regarding the appropriate length of 
instruction for programs measured in clock hours.

(Pub. L. 89-329, title IV, Sec. 498A, as added Pub. L. 102-325, title 
IV, Sec. 499, July 23, 1992, 106 Stat. 652; amended Pub. L. 103-208, 
Sec. 2(i)(15), Dec. 20, 1993, 107 Stat. 2480; Pub. L. 105-244, title IV, 
Sec. 494, Oct. 7, 1998, 112 Stat. 1763.)


                               Amendments

    1998--Subsec. (a)(2). Pub. L. 105-244, Sec. 494(1)(A)(i), 
substituted ``shall'' for ``may'' in introductory provisions.
    Subsec. (a)(2)(C). Pub. L. 105-244, Sec. 494(1)(A)(ii), amended 
subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: 
``institutions with a significant fluctuation in Federal Stafford Loan 
volume or Federal Pell Grant awards, or both, in the year for which the 
determination is made compared to the year prior to such year;''.
    Subsec. (a)(2)(D). Pub. L. 105-244, Sec. 494(1)(A)(iii), amended 
subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: 
``institutions reported to have deficiencies or financial aid problems 
by the appropriate State postsecondary review entity designated under 
subpart 1 of this part or by the appropriate accrediting agency or 
association;''.
    Subsec. (a)(2)(E). Pub. L. 105-244, Sec. 494(1)(A)(iv), inserted 
``and'' after the semicolon.
    Subsec. (a)(2)(F), (G). Pub. L. 105-244, Sec. 494(1)(A)(v), added 
subpar. (F) and struck out former subpars. (F) and (G) which read as 
follows:
    ``(F) any institution which is required to be reviewed by a State 
postsecondary review entity pursuant to subpart 1 of this part under 
section 1099a-3(b) of this title; and
    ``(G) such other institutions as the Secretary deems necessary; 
and''.
    Subsec. (a)(3)(A). Pub. L. 105-244, Sec. 494(1)(B), inserted 
``relevant'' after ``all''.
    Subsec. (b). Pub. L. 105-244, Sec. 494(2), amended heading and text 
of subsec. (b). Prior to amendment, text read as follows:
    ``(1) In carrying out paragraphs (1) and (2) of subsection (a) of 
this section, the Secretary shall establish guidelines designed to 
ensure uniformity of practice in the conduct of program reviews of 
institutions of higher education.
    ``(2) The Secretary shall review the regulations of the Department 
and the application of such regulations to ensure the uniformity of 
interpretation and application of the regulations.''
    1993--Subsec. (e). Pub. L. 103-208 struck out comma after ``title''.


                    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.
