20 U.S.C. § 1099b — Recognition of accrediting agency or as-

Page 732 TITLE 20—EDUCATION § 1099 § 1099. Transferred Editorial Notes CODIFICATION Section, Pub. L. 97–320, title VII, § 701(b), Oct. 15, 1982, 96 Stat. 1538, which related to exemption from State disclosure requirements, was transferred to section 1098g of this title. PART H—PROGRAM INTEGRITY Editorial Notes CODIFICATION Part H of title IV of the Higher Education Act of 1965, Pub. L. 89–329, which comprises this part, was formerly classified to part G of this subchapter. See Codification note preceding section 1087a of this title. Pub. L. 105–244, title IV, § 491(1), Oct. 7, 1998, 112 Stat. 1758, added heading and struck out former heading ‘‘Program Integrity Triad’’. PRIOR PROVISIONS A prior part H, consisting of part I of title IV of Pub. L. 89–329, was redesignated part I of this subchapter. SUBPART 1—STATE ROLE Editorial Notes CODIFICATION Subpart 1 of part H of title IV of the Higher Edu- cation Act of 1965, comprising this subpart, was origi- nally added to Pub. L. 89–329, title IV, by Pub. L. 102–325, title IV, § 499, July 23, 1992, 106 Stat. 635, and amended by Pub. L. 103–208, Dec. 20, 1993, 107 Stat. 2457. Subpart 1 is shown herein, however, as having been added by Pub. L. 105–244, title IV, § 491(2), Oct. 7, 1998, 112 Stat. 1759, without reference to those intervening amendments because of the extensive revision of sub- part 1 by Pub. L. 105–244. § 1099a. State responsibilities (a) State responsibilities As part of the integrity program authorized by this part, each State, through one State agency or several State agencies selected by the State, shall— (1) furnish the Secretary, upon request, in- formation with respect to the process for li- censing or other authorization for institutions of higher education to operate within the State; (2) notify the Secretary promptly whenever the State revokes a license or other authority to operate an institution of higher education; and (3) notify the Secretary promptly whenever the State has credible evidence that an insti- tution of higher education within the State— (A) has committed fraud in the adminis- tration of the student assistance programs authorized by this subchapter; or (B) has substantially violated a provision of this subchapter. (b) Institutional responsibility Each institution of higher education shall pro- vide evidence to the Secretary that the institu- tion has authority to operate within a State at the time the institution is certified under sub- part 3 of this part. (Pub. L. 89–329, title IV, § 495, as added Pub. L. 105–244, title IV, § 491(2), Oct. 7, 1998, 112 Stat. 1758.) Editorial Notes PRIOR PROVISIONS Prior sections 1099a to 1099a–3 were omitted in the general amendment of this subpart by Pub. L. 105–244. Section 1099a, Pub. L. 89–329, title IV, § 494, as added Pub. L. 102–325, title IV, § 499, July 23, 1992, 106 Stat. 635, authorized State postsecondary review program. Section 1099a–1, Pub. L. 89–329, title IV, § 494A, as added Pub. L. 102–325, title IV, § 499, July 23, 1992, 106 Stat. 635, related to State postsecondary review entity agreements. Section 1099a–2, Pub. L. 89–329, title IV, § 494B, as added Pub. L. 102–325, title IV, § 499, July 23, 1992, 106 Stat. 637, related to Federal reimbursement of State postsecondary review costs. Section 1099a–3, Pub. L. 89–329, title IV, § 494C, as added Pub. L. 102–325, title IV, § 499, July 23, 1992, 106 Stat. 637; amended Pub. L. 103–208, § 2(i)(1), (2), Dec. 20, 1993, 107 Stat. 2478, related to functions of State review entities. SUBPART 2—ACCREDITING AGENCY RECOGNITION Editorial Notes CODIFICATION Pub. L. 105–244, title IV, § 492(a)(1), Oct. 7, 1998, 112 Stat. 1759, substituted ‘‘RECOGNITION’’ for ‘‘APPROVAL’’ in heading. § 1099b. Recognition of accrediting agency or as- sociation (a) Criteria required No accrediting agency or association may be determined by the Secretary to be a reliable au- thority as to the quality of education or train- ing offered for the purposes of this chapter or for other Federal purposes, unless the agency or as- sociation meets criteria established by the Sec- retary pursuant to this section. The Secretary shall, after notice and opportunity for a hearing, establish criteria for such determinations. Such criteria shall include an appropriate measure or measures of student achievement. Such criteria shall require that— (1) the accrediting agency or association shall be a State, regional, or national agency or association and shall demonstrate the abil- ity and the experience to operate as an accred- iting agency or association within the State, region, or nationally, as appropriate; (2) such agency or association— (A)(i) for the purpose of participation in programs under this chapter, has a vol- untary membership of institutions of higher education and has as a principal purpose the accrediting of institutions of higher edu- cation; or (ii) for the purpose of participation in other programs administered by the Depart- ment of Education or other Federal agen- cies, has a voluntary membership and has as its principal purpose the accrediting of insti- tutions of higher education or programs; (B) is a State agency approved by the Sec- retary for the purpose described in subpara- graph (A); or (C) is an agency or association that, for the purpose of determining eligibility for student assistance under this subchapter, conducts accreditation through (i) a vol- untary membership organization of individ- Page 733 TITLE 20—EDUCATION § 1099b uals participating in a profession, or (ii) an agency or association which has as its prin- cipal purpose the accreditation of programs within institutions, which institutions are accredited by another agency or association recognized by the Secretary; (3) if such agency or association is an agency or association described in— (A) subparagraph (A)(i) of paragraph (2), then such agency or association is separate and independent, both administratively and financially of any related, associated, or af- filiated trade association or membership or- ganization; (B) subparagraph (B) of paragraph (2), then such agency or association has been recog- nized by the Secretary on or before October 1, 1991; or (C) subparagraph (C) of paragraph (2) and such agency or association has been recog- nized by the Secretary on or before October 1, 1991, then the Secretary may waive the re- quirement that such agency or association is separate and independent, both administra- tively and financially of any related, associ- ated, or affiliated trade association or mem- bership organization upon a demonstration that the existing relationship has not served to compromise the independence of its ac- creditation process; (4)(A) such agency or association consist- ently applies and enforces standards that re- spect the stated mission of the institution of higher education, including religious missions, and that ensure that the courses or programs of instruction, training, or study offered by the institution of higher education, including distance education or correspondence courses or programs, are of sufficient quality to achieve, for the duration of the accreditation period, the stated objective for which the courses or the programs are offered; and (B) if such agency or association has or seeks to include within its scope of recogni- tion the evaluation of the quality of institu- tions or programs offering distance education or correspondence education, such agency or association shall, in addition to meeting the other requirements of this subpart, dem- onstrate to the Secretary that— (i) the agency or association’s standards effectively address the quality of an institu- tion’s distance education or correspondence education in the areas identified in para- graph (5), except that— (I) the agency or association shall not be required to have separate standards, proce- dures, or policies for the evaluation of dis- tance education or correspondence edu- cation institutions or programs in order to meet the requirements of this subpara- graph; and (II) in the case that the agency or asso- ciation is recognized by the Secretary, the agency or association shall not be required to obtain the approval of the Secretary to expand its scope of accreditation to in- clude distance education or correspond- ence education, provided that the agency or association notifies the Secretary in writing of the change in scope; and (ii) the agency or association requires an institution that offers distance education or correspondence education to have processes through which the institution establishes that the student who registers in a distance education or correspondence education course or program is the same student who participates in and completes the program and receives the academic credit; (5) the standards for accreditation of the agency or association assess the institu- tion’s— (A) success with respect to student achievement in relation to the institution’s mission, which may include different stand- ards for different institutions or programs, as established by the institution, including, as appropriate, consideration of State licens- ing examinations, consideration of course completion, and job placement rates; (B) curricula; (C) faculty; (D) facilities, equipment, and supplies; (E) fiscal and administrative capacity as appropriate to the specified scale of oper- ations; (F) student support services; (G) recruiting and admissions practices, academic calendars, catalogs, publications, grading and advertising; (H) measures of program length and the objectives of the degrees or credentials of- fered; (I) record of student complaints received by, or available to, the agency or associa- tion; and (J) record of compliance with its program responsibilities under this subchapter based on the most recent student loan default rate data provided by the Secretary, the results of financial or compliance audits, program reviews, and such other information as the Secretary may provide to the agency or as- sociation; except that subparagraphs (A), (H), and (J) shall not apply to agencies or associations de- scribed in paragraph (2)(A)(ii) of this sub- section; (6) such an agency or association shall estab- lish and apply review procedures throughout the accrediting process, including evaluation and withdrawal proceedings, which comply with due process procedures that provide— (A) for adequate written specification of— (i) requirements, including clear stand- ards for an institution of higher education or program to be accredited; and (ii) identified deficiencies at the institu- tion or program examined; (B) for sufficient opportunity for a written response, by an institution or program, re- garding any deficiencies identified by the agency or association to be considered by the agency or association— (i) within a timeframe determined by the agency or association; and (ii) prior to final action in the evalua- tion and withdrawal proceedings; (C) upon the written request of an institu- tion or program, for an opportunity for the Page 734 TITLE 20—EDUCATION § 1099b institution or program to appeal any adverse action under this section, including denial, withdrawal, suspension, or termination of accreditation, taken against the institution or program, prior to such action becoming final at a hearing before an appeals panel that— (i) shall not include current members of the agency’s or association’s underlying decisionmaking body that made the ad- verse decision; and (ii) is subject to a conflict of interest policy; (D) for the right to representation and par- ticipation by counsel for an institution or program during an appeal of the adverse ac- tion; (E) for a process, in accordance with writ- ten procedures developed by the agency or association, through which an institution or program, before a final adverse action based solely upon a failure to meet a standard or criterion pertaining to finances, may on one occasion seek review of significant financial information that was unavailable to the in- stitution or program prior to the determina- tion of the adverse action, and that bears materially on the financial deficiencies iden- tified by the agency or association; (F) in the case that the agency or associa- tion determines that the new financial infor- mation submitted by the institution or pro- gram under subparagraph (E) meets the cri- teria of significance and materiality de- scribed in such subparagraph, for consider- ation by the agency or association of the new financial information prior to the ad- verse action described in such subparagraph becoming final; and (G) that any determination by the agency or association made with respect to the new financial information described in subpara- graph (E) shall not be separately appealable by the institution or program; (7) such agency or association shall notify the Secretary and the appropriate State li- censing or authorizing agency within 30 days of the accreditation of an institution or any final denial, withdrawal, suspension, or termi- nation of accreditation or placement on proba- tion of an institution, together with any other adverse action taken with respect to an insti- tution; and (8) such agency or association shall make available to the public, upon request, and to the Secretary, and the State licensing or au- thorizing agency a summary of any review re- sulting in a final accrediting decision involv- ing denial, termination, or suspension of ac- creditation, together with the comments of the affected institution. (b) ‘‘Separate and independent’’ defined For the purpose of subsection (a)(3), the term ‘‘separate and independent’’ means that— (1) the members of the postsecondary edu- cation governing body of the accrediting agen- cy or association are not elected or selected by the board or chief executive officer of any re- lated, associated, or affiliated trade associa- tion or membership organization; (2) among the membership of the board of the accrediting agency or association there shall be one public member (who is not a mem- ber of any related trade or membership organi- zation) for each six members of the board, with a minimum of one such public member, and guidelines are established for such mem- bers to avoid conflicts of interest; (3) dues to the accrediting agency or associa- tion are paid separately from any dues paid to any related, associated, or affiliated trade as- sociation or membership organization; and (4) the budget of the accrediting agency or association is developed and determined by the accrediting agency or association without review or resort to consultation with any other entity or organization. (c) Operating procedures required No accrediting agency or association may be recognized by the Secretary as a reliable author- ity as to the quality of education or training of- fered by an institution seeking to participate in the programs authorized under this subchapter, unless the agency or association— (1) performs, at regularly established inter- vals, on-site inspections and reviews of insti- tutions of higher education (which may in- clude unannounced site visits) with particular focus on educational quality and program ef- fectiveness, and ensures that accreditation team members are well-trained and knowl- edgeable with respect to their responsibilities, including those regarding distance education; (2) monitors the growth of programs at insti- tutions that are experiencing significant en- rollment growth; (3) requires an institution to submit for ap- proval to the accrediting agency a teach-out plan upon the occurrence of any of the fol- lowing events: (A) the Department notifies the accred- iting agency of an action against the institu- tion pursuant to section 1094(f) of this title; (B) the accrediting agency acts to with- draw, terminate, or suspend the accredita- tion of the institution; or (C) the institution notifies the accrediting agency that the institution intends to cease operations; (4) requires that any institution of higher education subject to its jurisdiction which plans to establish a branch campus submit a business plan, including projected revenues and expenditures, prior to opening the branch campus; (5) agrees to conduct, as soon as practicable, but within a period of not more than 6 months of the establishment of a new branch campus or a change of ownership of an institution of higher education, an on-site visit of that branch campus or of the institution after a change of ownership; (6) requires that teach-out agreements among institutions are subject to approval by the accrediting agency or association con- sistent with standards promulgated by such agency or association; (7) makes available to the public and the State licensing or authorizing agency, and submits to the Secretary, a summary of agen- cy or association actions, including— Page 735 TITLE 20—EDUCATION § 1099b (A) the award of accreditation or re- accreditation of an institution; (B) final denial, withdrawal, suspension, or termination of accreditation of an institu- tion, and any findings made in connection with the action taken, together with the of- ficial comments of the affected institution; and (C) any other adverse action taken with re- spect to an institution or placement on pro- bation of an institution; (8) discloses publicly whenever an institu- tion of higher education subject to its jurisdic- tion is being considered for accreditation or reaccreditation; and (9) confirms, as a part of the agency’s or as- sociation’s review for accreditation or re- accreditation, that the institution has trans- fer of credit policies— (A) that are publicly disclosed; and (B) that include a statement of the criteria established by the institution regarding the transfer of credit earned at another institu- tion of higher education. (d) Length of recognition No accrediting agency or association may be recognized by the Secretary for the purpose of this chapter for a period of more than 5 years. (e) Initial arbitration rule The Secretary may not recognize the accredi- tation of any institution of higher education un- less the institution of higher education agrees to submit any dispute involving the final denial, withdrawal, or termination of accreditation to initial arbitration prior to any other legal ac- tion. (f) Jurisdiction Notwithstanding any other provision of law, any civil action brought by an institution of higher education seeking accreditation from, or accredited by, an accrediting agency or associa- tion recognized by the Secretary for the purpose of this subchapter and involving the denial, withdrawal, or termination of accreditation of the institution of higher education, shall be brought in the appropriate United States dis- trict court. (g) Limitation on scope of criteria Nothing in this chapter shall be construed to permit the Secretary to establish criteria for ac- crediting agencies or associations that are not required by this section. Nothing in this chapter shall be construed to prohibit or limit any ac- crediting agency or association from adopting additional standards not provided for in this sec- tion. Nothing in this section shall be construed to permit the Secretary to establish any criteria that specifies, defines, or prescribes the stand- ards that accrediting agencies or associations shall use to assess any institution’s success with respect to student achievement. (h) Change of accrediting agency The Secretary shall not recognize the accredi- tation of any otherwise eligible institution of higher education if the institution of higher education is in the process of changing its ac- crediting agency or association, unless the eligi- ble institution submits to the Secretary all ma- terials relating to the prior accreditation, in- cluding materials demonstrating reasonable cause for changing the accrediting agency or as- sociation. (i) Dual accreditation rule The Secretary shall not recognize the accredi- tation of any otherwise eligible institution of higher education if the institution of higher education is accredited, as an institution, by more than one accrediting agency or associa- tion, unless the institution submits to each such agency and association and to the Secretary the reasons for accreditation by more than one such agency or association and demonstrates to the Secretary reasonable cause for its accreditation by more than one agency or association. If the institution is accredited, as an institution, by more than one accrediting agency or associa- tion, the institution shall designate which agen- cy’s accreditation shall be utilized in deter- mining the institution’s eligibility for programs under this chapter. (j) Impact of loss of accreditation An institution may not be certified or recer- tified as an institution of higher education under section 1002 of this title and subpart 3 of this part or participate in any of the other pro- grams authorized by this chapter if such institu- tion— (1) is not currently accredited by any agency or association recognized by the Secretary; (2) has had its accreditation withdrawn, re- voked, or otherwise terminated for cause dur- ing the preceding 24 months, unless such with- drawal, revocation, or termination has been rescinded by the same accrediting agency; or (3) has withdrawn from accreditation volun- tarily under a show cause or suspension order during the preceding 24 months, unless such order has been rescinded by the same accred- iting agency. (k) Religious institution rule Notwithstanding subsection (j), the Secretary shall allow an institution that has had its ac- creditation withdrawn, revoked, or otherwise terminated, or has voluntarily withdrawn from an accreditation agency, to remain certified as an institution of higher education under section 1002 of this title and subpart 3 of this part for a period sufficient to allow such institution to ob- tain alternative accreditation, if the Secretary determines that the reason for the withdrawal, revocation, or termination— (1) is related to the religious mission or af- filiation of the institution; and (2) is not related to the accreditation cri- teria provided for in this section. (l) Limitation, suspension, or termination of rec- ognition (1) If the Secretary determines that an accred- iting agency or association has failed to apply effectively the criteria in this section, or is oth- erwise not in compliance with the requirements of this section, the Secretary shall— (A) after notice and opportunity for a hear- ing, limit, suspend, or terminate the recogni- tion of the agency or association; or Page 736 TITLE 20—EDUCATION § 1099b (B) require the agency or association to take appropriate action to bring the agency or as- sociation into compliance with such require- ments within a timeframe specified by the Secretary, except that— (i) such timeframe shall not exceed 12 months unless the Secretary extends such period for good cause; and (ii) if the agency or association fails to bring the agency or association into compli- ance within such timeframe, the Secretary shall, after notice and opportunity for a hearing, limit, suspend, or terminate the recognition of the agency or association. (2) The Secretary may determine that an ac- crediting agency or association has failed to apply effectively the standards provided in this section if an institution of higher education seeks and receives accreditation from the ac- crediting agency or association during any pe- riod in which the institution is the subject of any interim action by another accrediting agen- cy or association, described in paragraph (2)(A)(i), (2)(B), or (2)(C) of subsection (a) of this section, leading to the suspension, revocation, or termination of accreditation or the institu- tion has been notified of the threatened loss of accreditation, and the due process procedures required by such suspension, revocation, termi- nation, or threatened loss have not been com- pleted. (m) Limitation on Secretary’s authority The Secretary may only recognize accrediting agencies or associations which accredit institu- tions of higher education for the purpose of ena- bling such institutions to establish eligibility to participate in the programs under this chapter or which accredit institutions of higher edu- cation or higher education programs for the pur- pose of enabling them to establish eligibility to participate in other programs administered by the Department of Education or other Federal agencies. (n) Independent evaluation (1) The Secretary shall conduct a comprehen- sive review and evaluation of the performance of all accrediting agencies or associations which seek recognition by the Secretary in order to de- termine whether such accrediting agencies or associations meet the criteria established by this section. The Secretary shall conduct an independent evaluation of the information pro- vided by such agency or association. Such eval- uation shall include— (A) the solicitation of third-party informa- tion concerning the performance of the accred- iting agency or association; and (B) site visits, including unannounced site visits as appropriate, at accrediting agencies and associations, and, at the Secretary’s dis- cretion, at representative member institu- tions. (2) The Secretary shall place a priority for re- view of accrediting agencies or associations on those agencies or associations that accredit in- stitutions of higher education that participate most extensively in the programs authorized by this subchapter and on those agencies or asso- ciations which have been the subject of the most complaints or legal actions. (3) The Secretary shall consider all available relevant information concerning the compliance of the accrediting agency or association with the criteria provided for in this section, includ- ing any complaints or legal actions against such agency or association. In cases where defi- ciencies in the performance of an accreditation agency or association with respect to the re- quirements of this section are noted, the Sec- retary shall take these deficiencies into account in the recognition process. The Secretary shall not, under any circumstances, base decisions on the recognition or denial of recognition of ac- creditation agencies or associations on criteria other than those contained in this section. When the Secretary decides to recognize an accred- iting agency or association, the Secretary shall determine the agency or association’s scope of recognition. If the agency or association reviews institutions offering distance education courses or programs and the Secretary determines that the agency or association meets the require- ments of this section, then the agency shall be recognized and the scope of recognition shall in- clude accreditation of institutions offering dis- tance education courses or programs. (4) The Secretary shall maintain sufficient documentation to support the conclusions reached in the recognition process, and, if the Secretary does not recognize any accreditation agency or association, shall make publicly available the reason for denying recognition, in- cluding reference to the specific criteria under this section which have not been fulfilled. (o) Regulations The Secretary shall by regulation provide pro- cedures for the recognition of accrediting agen- cies or associations and for the appeal of the Secretary’s decisions. Notwithstanding any other provision of law, the Secretary shall not promulgate any regulation with respect to the standards of an accreditation agency or associa- tion described in subsection (a)(5). (p) Rule of construction Nothing in subsection (a)(5) shall be construed to restrict the ability of— (1) an accrediting agency or association to set, with the involvement of its members, and to apply, accreditation standards for or to in- stitutions or programs that seek review by the agency or association; or (2) an institution to develop and use institu- tional standards to show its success with re- spect to student achievement, which achieve- ment may be considered as part of any accred- itation review. (q) Review of scope changes The Secretary shall require a review, at the next available meeting of the National Advisory Committee on Institutional Quality and Integ- rity, of any change in scope undertaken by an agency or association under subsection (a)(4)(B)(i)(II) if the enrollment of an institution that offers distance education or correspondence education that is accredited by such agency or association increases by 50 percent or more within any one institutional fiscal year. (Pub. L. 89–329, title IV, § 496, as added Pub. L. 102–325, title IV, § 499, July 23, 1992, 106 Stat. 641; Page 737 TITLE 20—EDUCATION § 1099b amended Pub. L. 103–208, § 2(i)(3)–(8), Dec. 20, 1993, 107 Stat. 2478, 2479; Pub. L. 105–244, title I, § 102(b)(5), title IV, § 492(a)(2)–(d), Oct. 7, 1998, 112 Stat. 1622, 1759, 1760; Pub. L. 110–315, title IV, § 495, Aug. 14, 2008, 122 Stat. 3324; Pub. L. 111–39, title IV, § 408(1), July 1, 2009, 123 Stat. 1953.) Editorial Notes AMENDMENTS 2009—Subsec. (a)(6)(G). Pub. L. 111–39 substituted semicolon for period at end. 2008—Subsec. (a)(4). Pub. L. 110–315, § 495(1)(A), added par. (4) and struck out former par. (4) which read as fol- lows: ‘‘such agency or association consistently applies and enforces standards that ensure that the courses or programs of instruction, training, or study offered by the institution of higher education, including distance education courses or programs, are of sufficient quality to achieve, for the duration of the accreditation period, the stated objective for which the courses or the pro- grams are offered;’’. Subsec. (a)(5)(A). Pub. L. 110–315, § 495(1)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘success with respect to student achievement in relation to the institution’s mission, including, as appropriate, consideration of course com- pletion, State licensing examinations, and job place- ment rates;’’. Subsec. (a)(6). Pub. L. 110–315, § 495(1)(C), added par. (6) and struck out former par. (6) which read as follows: ‘‘such agency or association shall apply procedures throughout the accrediting process, including evalua- tion and withdrawal proceedings, that comply with due process, including— ‘‘(A) adequate specification of requirements and de- ficiencies at the institution of higher education or program being examined; ‘‘(B) notice of an opportunity for a hearing by any such institution; ‘‘(C) the right to appeal any adverse action against any such institution; and ‘‘(D) the right to representation by counsel for any such institution;’’. Subsec. (c)(1). Pub. L. 110–315, § 495(2)(A), inserted ‘‘, including those regarding distance education’’ after ‘‘their responsibilities’’. Subsec. (c)(2) to (8). Pub. L. 110–315, § 495(2)(B)–(D), added pars. (2), (3), and (7), redesignated former pars. (2) to (6) as (4) to (8), respectively, and struck out former par. (7) which read as follows: ‘‘maintains and makes publicly available written materials regarding stand- ards and procedures for accreditation, appeal proce- dures, and the accreditation status of each institution subject to its jurisdiction; and’’. Subsec. (c)(9). Pub. L. 110–315, § 495(2)(E), (F), added par. (9). Subsec. (g). Pub. L. 110–315, § 495(3), inserted at end ‘‘Nothing in this section shall be construed to permit the Secretary to establish any criteria that specifies, defines, or prescribes the standards that accrediting agencies or associations shall use to assess any institu- tion’s success with respect to student achievement.’’ Subsec. (o). Pub. L. 110–315, § 495(4), inserted at end ‘‘Notwithstanding any other provision of law, the Sec- retary shall not promulgate any regulation with re- spect to the standards of an accreditation agency or as- sociation described in subsection (a)(5).’’ Subsecs. (p), (q). Pub. L. 110–315, § 495(5), added sub- secs. (p) and (q). 1998—Pub. L. 105–244, § 492(a)(2), substituted ‘‘Recogni- tion’’ for ‘‘Approval’’ in section catchline. Subsec. (a). Pub. L. 105–244, § 492(b)(1), (2), substituted ‘‘Criteria’’ for ‘‘Standards’’ in heading and ‘‘criteria’’ for ‘‘standards’’ wherever appearing in introductory provisions. Subsec. (a)(4). Pub. L. 105–244, § 492(b)(3), substituted ‘‘offered by the institution’’ for ‘‘at the institution’’ and inserted ‘‘, including distance education courses or programs,’’ after ‘‘higher education’’. Subsec. (a)(5). Pub. L. 105–244, § 492(b)(4)(A), (H), sub- stituted ‘‘for accreditation’’ for ‘‘of accreditation’’ in introductory provisions and ‘‘(A), (H), and (J)’’ for ‘‘(G), (H), (I), (J), and (L)’’ in concluding provisions. Subsec. (a)(5)(A) to (G). Pub. L. 105–244, § 492(b)(4)(C), (E), added subpar. (A) and redesignated former subpars. (A) to (F) as (B) to (G), respectively. Former subpar. (G) redesignated (H). Subsec. (a)(5)(H). Pub. L. 105–244, § 492(b)(4)(F), sub- stituted ‘‘measures of program length’’ for ‘‘program length and tuition and fees in relation to the subject matters taught’’. Pub. L. 105–244, § 492(b)(4)(C), redesignated subpar. (G) as (H). Pub. L. 105–244, § 492(b)(4)(B), struck out subpar. (H) which read as follows: ‘‘measures of program length in clock hours or credit hours;’’. Subsec. (a)(5)(I). Pub. L. 105–244, § 492(b)(4)(B), (D), re- designated subpar. (K) as (I) and struck out former sub- par. (I) which read as follows: ‘‘success with respect to student achievement in relation to its mission, includ- ing, as appropriate, consideration of course completion, State licensing examination, and job placement rates;’’. Subsec. (a)(5)(J). Pub. L. 105–244, § 492(b)(4)(G), in- serted ‘‘record of’’ before ‘‘compliance’’, substituted ‘‘based on the most recent student loan default rate data provided by the Secretary, the’’ for ‘‘, including any’’, and inserted ‘‘any’’ after ‘‘reviews, and’’. Pub. L. 105–244, § 492(b)(4)(B), (D), redesignated subpar. (L) as (J) and struck out former subpar. (J) which read as follows: ‘‘default rates in the student loan programs under this subchapter, based on the most recent data provided by the Secretary;’’. Subsec. (a)(5)(K), (L). Pub. L. 105–244, § 492(b)(4)(D), re- designated subpars. (K) and (L) as (I) and (J), respec- tively. Subsec. (a)(7). Pub. L. 105–244, § 492(b)(5), substituted ‘‘State licensing or authorizing agency’’ for ‘‘State postsecondary review entity’’. Subsec. (a)(8). Pub. L. 105–244, § 492(b)(6), substituted ‘‘State licensing or authorizing agency’’ for ‘‘State postsecondary review entity of the State in which the institution of higher education is located’’. Subsec. (c). Pub. L. 105–244, § 492(c)(1), substituted ‘‘recognized by the Secretary’’ for ‘‘approved by the Secretary’’ in introductory provisions. Subsec. (c)(1). Pub. L. 105–244, § 492(c)(2), substituted ‘‘(which may include unannounced site visits)’’ for ‘‘(at least one of which inspections at each institution that provides vocational education and training shall be un- announced),’’. Subsec. (d). Pub. L. 105–244, § 492(d)(1), substituted ‘‘recognition’’ for ‘‘approval’’ in heading and ‘‘recog- nized’’ for ‘‘approved’’ in text. Subsec. (f). Pub. L. 105–244, § 492(d)(2), substituted ‘‘recognized’’ for ‘‘approved’’. Subsec. (g). Pub. L. 105–244, § 492(d)(3), substituted ‘‘criteria’’ for ‘‘standards’’ in heading and ‘‘establish criteria’’ for ‘‘establish standards’’ in text. Subsec. (j). Pub. L. 105–244, § 102(b)(5), substituted ‘‘section 1002’’ for ‘‘section 1088’’ in introductory provi- sions. Subsec. (k). Pub. L. 105–244, §§ 102(b)(5), 492(d)(4)(A), amended subsec. (k) identically, substituting ‘‘section 1002’’ for ‘‘section 1088’’ in introductory provisions. Subsec. (k)(2). Pub. L. 105–244, § 492(d)(4)(B), sub- stituted ‘‘criteria’’ for ‘‘standards’’. Subsec. (l). Pub. L. 105–244, § 492(d)(5), substituted ‘‘recognition’’ for ‘‘approval’’ in heading, added par. (1), and struck out former par. (1) which read as follows: ‘‘The Secretary shall limit, suspend, or terminate the approval of an accrediting agency or association if the Secretary determines, after notice and opportunity for a hearing, that the accrediting agency or association has failed to apply effectively the standards or operate according to the procedures provided in this section.’’ Subsec. (n)(1). Pub. L. 105–244, § 492(d)(6)(A), sub- stituted ‘‘criteria’’ for ‘‘standards’’ in introductory pro- visions. Page 738 TITLE 20—EDUCATION § 1099c Subsec. (n)(3). Pub. L. 105–244, § 492(d)(6)(A), (B), sub- stituted ‘‘criteria’’ for ‘‘standards’’ in two places, ‘‘rec- ognition process’’ for ‘‘approval process’’, and ‘‘recogni- tion or denial of recognition’’ for ‘‘approval or dis- approval’’, and inserted at end ‘‘When the Secretary de- cides to recognize an accrediting agency or association, the Secretary shall determine the agency or associa- tion’s scope of recognition. If the agency or association reviews institutions offering distance education courses or programs and the Secretary determines that the agency or association meets the requirements of this section, then the agency shall be recognized and the scope of recognition shall include accreditation of institutions offering distance education courses or pro- grams.’’ Subsec. (n)(4). Pub. L. 105–244, § 492(d)(6)(C), added par. (4) and struck out former par. (4) which read as follows: ‘‘The Secretary shall maintain sufficient documenta- tion to support the conclusions reached in the approval process, and, upon disapproval of any accreditation agency or association, shall make publicly available the reason for such disapproval, including reference to the specific standards under this section which have not been fulfilled.’’ 1993—Subsec. (a)(2)(A)(i). Pub. L. 103–208, § 2(i)(3), in- serted ‘‘of institutions of higher education’’ after ‘‘membership’’. Subsec. (a)(3)(A). Pub. L. 103–208, § 2(i)(4), substituted ‘‘subparagraph (A)(i)’’ for ‘‘subparagraph (A)’’. Subsec. (a)(5). Pub. L. 103–208, § 2(i)(5), substituted a semicolon for the period at end of subpar. (L) and in- serted after subpar. (L) the following: ‘‘except that sub- paragraphs (G), (H), (I), (J), and (L) shall not apply to agencies or associations described in paragraph (2)(A)(ii) of this subsection;’’. Subsec. (c). Pub. L. 103–208, § 2(i)(6), substituted ‘‘as a reliable authority as to the quality of education or training offered by an institution seeking to partici- pate in the programs authorized under this subchapter’’ for ‘‘for the purpose of this subchapter’’. Subsec. (l)(2). Pub. L. 103–208, § 2(i)(7), substituted ‘‘in- stitution’’ for ‘‘institutution’’ and ‘‘association, de- scribed in paragraph (2)(A)(i), (2)(B), or (2)(C) of sub- section (a) of this section, leading to the suspension’’ for ‘‘association leading to the suspension’’. Subsec. (n)(1)(B). Pub. L. 103–208, § 2(i)(8), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: ‘‘site visits at both the accrediting agency or association and member institutions, includ- ing unannounced visits where appropriate.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this 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 sec- tion 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 Section effective Oct. 1, 1992, see section 2 of Pub. L. 102–325, set out as an Effective Date of 1992 Amendment note under section 1001 of this title. STUDY OF TRANSFER OF CREDITS Pub. L. 105–244, title VIII, § 804, Oct. 7, 1998, 112 Stat. 1806, which directed the Secretary of Education to con- duct a study regarding the treatment of the transfer of credits from one institution of higher education to an- other and to report to Congress, not later than one year after Oct. 7, 1998, was repealed by Pub. L. 110–315, title IX, § 931(1), Aug. 14, 2008, 122 Stat. 3456. SUBPART 3—ELIGIBILITY AND CERTIFICATION PROCEDURES § 1099c. Eligibility and certification procedures (a) General requirement For purposes of qualifying institutions of higher education for participation in programs under this subchapter, the Secretary shall deter- mine the legal authority to operate within a State, the accreditation status, and the admin- istrative capability and financial responsibility of an institution of higher education in accord- ance with the requirements of this section. (b) Single application form The Secretary shall prepare and prescribe a single application form which— (1) requires sufficient information and docu- mentation to determine that the requirements of eligibility, accreditation, financial respon- sibility, and administrative capability of the institution of higher education are met; (2) requires a specific description of the rela- tionship between a main campus of an institu- tion of higher education and all of its branches, including a description of the stu- dent aid processing that is performed by the main campus and that which is performed at its branches; (3) requires— (A) a description of the third party servicers of an institution of higher edu- cation; and (B) the institution to maintain a copy of any contract with a financial aid service provider or loan servicer, and provide a copy of any such contract to the Secretary upon request; (4) requires such other information as the Secretary determines will ensure compliance with the requirements of this subchapter with respect to eligibility, accreditation, adminis- trative capability and financial responsibility; and (5) provides, at the option of the institution, for participation in one or more of the pro- grams under part B or D. (c) Financial responsibility standards (1) The Secretary shall determine whether an institution has the financial responsibility re- quired by this subchapter on the basis of wheth- er the institution is able— (A) to provide the services described in its official publications and statements; (B) to provide the administrative resources necessary to comply with the requirements of this subchapter; and (C) to meet all of its financial obligations, including (but not limited to) refunds of insti- tutional charges and repayments to the Sec- retary for liabilities and debts incurred in pro- grams administered by the Secretary. (2) Notwithstanding paragraph (1), if an insti- tution fails to meet criteria prescribed by the