(1) Inclusion of additional institutions Subject to paragraphs (2) through (4) of this subsection, the term institution of higher education for purposes of subchapter IV of this chapter and part C of subchapter I of chapter
34 of title
42 includes, in addition to the institutions covered by the definition in section
1001 of this title
(A) a proprietary institution of higher education (as defined in subsection (b) of this section);
(B) a postsecondary vocational institution (as defined in subsection (c) of this section); and
(C) only for the purposes of part B of subchapter IV of this chapter, an institution outside the United States that is comparable to an institution of higher education as defined in section
1001 of this title and that has been approved by the Secretary for the purpose of part B of subchapter IV of this chapter.
(2) Institutions outside the United States
(A) In general For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in section
1001 of this title (except that a graduate medical
school, or a veterinary
school, located outside the United States shall not be required to meet the requirements of section
1001 (a)(4) of this title). Such criteria shall include a requirement that a
student attending such
school outside the United States is ineligible for loans made, insured, or guaranteed under part B of subchapter IV of this chapter unless
(i) in the case of a graduate medical
school located outside the United States
(I)
(aa) at least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical
school outside the United States were not persons described in section
1091 (a)(5) of this title in the year preceding the year for which a
student is seeking a loan under part B of subchapter IV of this chapter; and
(bb) at least 60 percent of the individuals who were students or graduates of the graduate medical
school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a
student is seeking a loan under part B of subchapter IV of this chapter; or
(II) the institution has a clinical training program that was approved by a State as of January 1, 1992; or
(ii) in the case of a veterinary
school located outside the United States that does not meet the requirements of section
1001 (a)(4) of this title, the institutions students complete their clinical training at an approved veterinary
school located in the United States.
(B) Advisory panel
(i) In general For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, the Secretary shall establish an advisory panel of medical experts that shall
(I) evaluate the standards of accreditation applied to applicant foreign medical schools; and
(II) determine the comparability of those standards to standards for accreditation applied to United States medical schools.
(ii) Special rule If the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical
school shall be required to meet the requirements of section
1001 of this title.
(C) Failure to release information
The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subparagraph (A) shall render such institution ineligible for the purpose of part B of subchapter IV of this chapter.
(D) Special rule If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under subchapter IV of this chapter and part C of subchapter I of chapter
34 of title
42, then a
student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B
while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
(3) Limitations based on course of study or enrollment An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution
(A) offers more than 50 percent of such institutions courses by correspondence (excluding courses offered by telecommunications as defined in section
1091 (l)(4) of this title), unless the institution is an institution that meets the definition in section
2302 (3)(C) of this title;
(B) enrolls 50 percent or more of the institutions students in correspondence courses (excluding courses offered by telecommunications as defined in section
1091 (l)(4) of this title), unless the institution is an institution that meets the definition in such section, except that the Secretary, at the request of such institution, may waive the applicability of this subparagraph to such institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively;
(C) has a
student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for a
nonprofit">
nonprofit institution that provides a 2- or 4-year program of instruction (or both) for which the institution awards a bachelors degree, or an associates degree or a postsecondary diploma, respectively; or
(D) has a
student enrollment in which more than 50 percent of the students do not have a secondary
school diploma or its recognized equivalent, and does not provide a 2- or 4-year program of instruction (or both) for which the institution awards a bachelors degree or an associates degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a
nonprofit">
nonprofit institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary
school diploma or its recognized equivalent.
(4) Limitations based on management An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if
(A) the institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a
nonprofit">
nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institutions management or policies) that files for bankruptcy under chapter
11 of title
11 between July 1, 1998, and December 1, 1998; or
(B) the institution, the institutions owner, or the institutions chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under subchapter IV of this chapter and part C of subchapter I of chapter
34 of title
42, or has been judicially determined to have committed fraud involving funds under subchapter IV of this chapter and part C of subchapter I of chapter
34 of title
42.
(6) Loss of eligibility An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under subchapter IV of this chapter and part C of subchapter I of chapter
34 of title
42 as a result of an action pursuant to part G of subchapter IV of this chapter.