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PART 602—ACCREDITATION

Subpart A—General

§602.1 Why does the Secretary recognize accrediting agencies?

§602.2 How do I know which agencies the Secretary recognizes?

§602.3 What definitions apply to this part?

(a) The following definitions are contained in the regulations for Institutional Eligibility under the 

Higher Education Act of 1965, as amended, 34 CFR part 600:

Accredited

Additional Location

Branch Campus

Correspondence course

Credit hour

Distance Education

Institution of higher education or institution means an educational institution that qualifies, or may 

qualify as an eligible institution under 34 CFR part 600

Nationally recognized accrediting agency

Preaccreditation

Religious mission

Secretary

State

Teach-out

Teach-out agreement

Teach-out plan

(b) The following definitions apply to this part:

Accreditation means the status of public recognition that an accrediting agency grants to an 

educational institution or program that meets the agency's standards and requirements.

Accrediting agency or agency means a legal entity, or that part of a legal entity, that conducts 

accrediting activities through voluntary, non-Federal peer review and makes decisions concerning the 

accreditation or preaccreditation status of institutions, programs, or both.

Act means the Higher Education Act of 1965, as amended.
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Adverse accrediting action or adverse action means the denial, withdrawal, suspension, revocation, 

or termination of accreditation or preaccreditation, or any comparable accrediting action an agency may 

take against an institution or program.

Advisory Committee means the National Advisory Committee on Institutional Quality and Integrity.

Branch Campus means a location of an institution that meets the definition of branch campus in 

34 CFR 600.2.

Compliance report means a written report that the Department requires an agency to file when 

that agency is found to be out of compliance to demonstrate that the agency has addressedcorrected

deficiencies specified in a decision letter from the senior Department official or the Secretary. 

Compliance reports must be reviewed by Department staff and the Advisory Committee and approved 

by the senior Department official or, in the event of an appeal, by the Secretary.

Correspondence education means:

(1) Education provided through one or more courses by an institution under which the institution 

provides instructional materials, by mail or electronic transmission, including examinations on the 

materials, to students who are separated from the instructor.

(2) Interaction between the instructor and the student is limited, is not regular and substantive, 

and is primarily initiated by the student.

(3) Correspondence courses are typically self-paced.

(4) Correspondence education is not distance education.

Designated Federal Official means the Federal officer designated under section 10(f) of the Federal 

Advisory Committee Act, 5 U.S.C. Appdx. 1.

Direct assessment program means an instructional program that, in lieu of credit hours or clock 

hours as a measure of student learning, utilizes direct assessment of student learning, or recognizes the 

direct assessment of student learning by others, if such assessment is consistent with the institution’s or 

program’s accreditation, and meets the conditions of 34 CFR 668.10. For title IV, HEA purposes, the 

institution must obtain approval for thefrom the Secretary before its first direct assessment program 

from the will qualify under 34 CFR 668.10(g) or (h) as applicable. As part of that approval, the accrediting 

agency must—an eligible program. 

As part of the accrediting agency’s review, in order for any direct assessment program to qualify as 

an eligible program, the accrediting agency must have—

(1) EvaluateEvaluated the programs based on the agency’s accreditation standards and 

includecriteria, and included them in the institution's grant of accreditation or preaccreditation; and

(2) ReviewReviewed and approveapproved the institution's claim of each direct assessment 

program's equivalence in terms of credit or clock hours.
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means education that uses one or more of the technologies listed in paragraphs (1) through (4) of 

this definition to deliver instruction to students who are separated from the instructor and to support 

regular and substantive interaction between the students and the instructor, either synchronously or 

asynchronously. The technologies may include—

(1) The internet;

(2) One-way and two-way transmissions through open broadcast, closed circuit, cable, microwave, 

broadband lines, fiber optics, satellite, or wireless communications devices;

(3) Audio conferencing; or

(4) Video cassettes, DVDs, and CD-ROMs, if the cassettes, DVDs, or CD-ROMs are used in a course 

in conjunction with any of the technologies listed in paragraphs (1) through (3) of this definition.

Final accrediting action means a final determination by an accrediting agency regarding the 

accreditation or preaccreditation status of an institution or program. A final accrediting action is not 

appealable within the agency.a decision made by the agency, at the conclusion of any appeals process

available to the institution or program under the agency’s due process policies and procedures. 

or institution means an educational institution that qualifies, or may qualify, as an eligible 

institution under 34 CFR part 600.

Institutional accrediting agency means an agency that accredits institutions of higher education.

Monitoring report means a report that an agency is required to submit to Department staff when it 

is found to be substantially compliant. The report contains documentation to demonstrate that

(1) The agency is implementing its current or corrected policies; or

(2) The agency, which is compliant in practice, has updated its policies to align with those 

compliant practices.

, nationally recognized agency, or recognized agency means an accrediting agency that the 

Secretary recognizes under this part.

means the status of public recognition that an accrediting agency grants to an institution or 

program for a limited period of time that signifies the agency has determined that the institution or 

program is progressing towards accreditation and is likely to attain accreditation before the expiration 

of that limited period of time.

Program means a postsecondary educational program offered by an institution of higher education 

that leads to an academic or professional degree, certificate, or other recognized educational credential.

Programmatic accrediting agency means an agency that accredits specific educational programs, 

including those that prepare students in specific academic disciplines or for entry into a profession, 

occupation, or vocation.
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Recognition means an unappealed determination by the senior Department official under §602.36, 

or a determination by the Secretary on appeal under §602.37, that an accrediting agency complies with 

the criteria for recognition listed in subpart B of this part and that the agency is effective and consistent 

in its application of those criteria. A grant of recognition to an agency as a reliable authority regarding 

the quality of education or training offered by institutions or programs it accredits remains in effect for 

the term granted except upon a determination made in accordance with subpart C of this part that the 

agency no longer complies with the subpart B criteria or that it has become ineffective in its application 

of those criteria.

Representative of the public means a person who is not—

(1) An employee, member of the governing board, owner, or shareholder of, or consultant to, an 

institution or program that either is accredited or preaccredited by the agency or has applied for 

accreditation or preaccreditation;

(2) A member of any trade association or membership organization related to, affiliated with, or 

associated with the agency; or

(3) A spouse, parent, child, or sibling of an individual identified in paragraph (1) or (2) of this 

definition.

Scope of recognition or scope means the range of accrediting activities for which the Secretary 

recognizes an agency. The Secretary may place a limitation on the scope of an agency's recognition for 

Titletitle IV, HEA purposes. The Secretary's designation of scope defines the recognition granted 

according to—

(1) Geographic area of accrediting activities;

(2) Types of degrees and certificates covered;

(32) Types of institutions and programs covered;

(43) Types of preaccreditation status covered, if any; and

(54) Coverage of accrediting activities related to distance education or correspondence 

educationcourses.

Secretary means the Secretary of the U.S. Department of Education or any official or employee of 

the Department acting for the Secretary under a delegation of authority.

Senior Department official means the senior official in the U.S. Department of Education who 

reports directly to the Secretary regardingdesignated by the Secretary who has, in the judgment of the 

Secretary, appropriate seniority and relevant subject matter knowledge to make independent decisions 

on accrediting agency recognition.

Substantial compliance means the agency demonstrated to the Department that it has the 

necessary policies, practices and standards in place and generally adheres with fidelity to those policies, 

practices and standards; or the agency has policies, practices, and standards in place that need minor 

modifications to reflect its generally compliant practice.

State means a State of the Union, American Samoa, the Commonwealth of Puerto Rico, the District 

of Columbia, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana 
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Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of 

Palau. The latter three are also known as the Freely Associated States.

Teach-out agreement means a written agreement between institutions that provides for the 

equitable treatment of students and a reasonable opportunity for students to complete their program 

of study if an institution, or an institutional location that provides one hundred percent of at least one 

program offered, ceases to operate before all enrolled students have completed their program of study.

Teach-out plan means a written plan developed by an institution that provides for the equitable 

treatment of students if an institution, or an institutional location that provides one hundred percent of 

at least one program, ceases to operate before all students have completed their program of study, and 

may include, if required by the institution's accrediting agency, a teach-out agreement between 

institutions.

(Authority: 20 U.S.C. 1099b)

[64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55426, Oct. 27, 2009]

Subpart B—The Criteria for Recognition

Basic Eligibility Requirements

§602.10 Link to Federal programs.

The agency must demonstrate that—

(a) If the agency accredits institutions of higher education, its accreditation is a required element in 

enabling at least one of those institutions to establish eligibility to participate in HEA programs; or. If, 

pursuant to 34 CFR 600.11(b), an agency accredits one or more institutions that participate in HEA

programs and that could designate the agency as its link to HEA programs, the agency satisfies this 

requirement, even if the institution currently designates another institutional accrediting agency as its 

Federal link; or 

(b) If the agency accredits institutions of higher education or higher education programs, or both, 

its accreditation is a required element in enabling at least one of those entities to establish eligibility to 

participate in non-HEA Federal programs.

(Authority: 20 U.S.C. 1099b)

§602.11 Geographic scopearea of accrediting activities.

The agency must demonstrate that itsit conducts accrediting activities cover—within –

(a) A State, if the agency is part of a State government; 

(b) A region of the United States that includes at least three States that are reasonably close to one 

another; or
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(b) A region or group of States chosen by the agency in which an agency provides accreditation to a

main campus, a branch campus, or an additional location of an institution. An agency whose region 

includes a State in which a branch campus or additional location is located is not required to also 

accredit a main campus in that State.

(c) The United States. 

(Authority: 20 U.S.C. 1099b)

§602.12 Accrediting experience.

(a) An agency seeking initial recognition must demonstrate that it has (1) Granted accreditation or 

preaccreditation—

(1) Granted accreditation or preaccreditation prior to submitting an application for recognition-

(i) To one or more institutions if it is requesting recognition as an institutional accrediting agency 

and to one or more programs if it is requesting recognition as a programmatic accrediting agency; 

(ii) That covers the range of the specific degrees, certificates, institutions, and programs for which 

it seeks recognition; and

(iii) In the geographic area for which it seeks recognition; and.

(2) Conducted accrediting activities, including deciding whether to grant or deny accreditation or 

preaccreditation, for at least two years prior to seeking recognition. When the agency is seeking initial 

recognition and is affiliated with or is a division of an already recognized agency, the two year period 

must not apply.

(b)(1) A recognized agency seeking an expansion of its scope of recognition must follow the 

requirements of 602.31 and 602.32 and demonstrate that it has granted accreditation or 

preaccreditation policies in place that meet all the criteria for recognition covering the range of the 

specific degrees, certificates, institutions, and programs for which it seeks the expansion of scope. ) and 

has engaged and can show support from relevant constituencies for the expansion. The Department 

does not consider a change to an agency’s geographic area of accrediting activities to be an expansion of 

the agency’s scope of recognition, but does require notification to the Department and public disclosure 

on the agency’s website of any such change.

(2) An agency by others. The agency mustthat cannot demonstrate that its standards, policies, 

procedures, and decisions to grant or deny experience in making accreditation are widely accepted in or 

preaccreditation decisions under the expanded scope at the United States by—time of its application or 

review for an expansion of scope may -

(a) Educators and educational institutions; and

(b) Licensing bodies, practitioners, and employers in the professional or vocational fields for which 

the educational institutions or programs within the agency's jurisdiction prepare their students.
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(i) If it is an institutional accrediting agency, be limited in the number of institutions to which it may 

grant accreditation under the expanded scope for a designated period of time; or

(ii) If it is a programmatic accrediting agency, be limited in the number of programs to which it may 

grant accreditation under that expanded scope for a certain period of time; and

(iii) Be required to submit a monitoring report regarding accreditation decisions made under the 

expanded scope. 

(Authority: 20 U.S.C. 1099b)

§602.13 Acceptance of the agency by others. [Reserved]

The agency must demonstrate that its standards, policies, procedures, and decisions to grant or 

deny accreditation are widely accepted in the United States by-

(a) Educators and educational institutions; and

(b) Licensing bodies, practitioners, and employers in the professional or vocational fields for 

which the education institutions or programs within the agency’s jurisdiction prepare their 

students. 

(Authority: 20 U.S.C. 1099b)

§602.14 Purpose and organization.

(a) 

(a) The Secretary recognizes only the following four categories of accrediting agencies:

The Secretary 

recognizes . . . that . . .

(1) An accrediting 

agency

(i) Has a voluntary membership of institutions of higher education;

 (ii) Has as a principal purpose the accrediting of institutions of higher education and 

that accreditation is a required element in enabling those institutions to participate 

in HEA programs; and

 (iii) Satisfies the “separate and independent” requirements in paragraph (b) of this 

section.

(2) An accrediting 

agency

(i) Has a voluntary membership; and
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 (ii) Has as its principal purpose the accrediting of higher education programs, or 

higher education programs and institutions of higher education, and that 

accreditation is a required element in enabling those entities to participate in nonHEA Federal programs.

(3) An accrediting 

agency

for purposes of determining eligibility for Title IV, HEA programs—

 (i) Either has a voluntary membership of individuals participating in a profession or 

has as its principal purpose the accrediting of programs within institutions that are 

accredited by a nationally recognized accrediting agency; and

 (ii) Either satisfies the “separate and independent” requirements in paragraph (b) of 

this section or obtains a waiver of those requirements under paragraphs (d) and (e) 

of this section.

(4) A State agency (i) Has as a principal purpose the accrediting of institutions of higher education, 

higher education programs, or both; and

 (ii) The Secretary listed as a nationally recognized accrediting agency on or before 

October 1, 1991 and has recognized continuously since that date.

(1) A State agency that-

(i) Has as a principal purpose the accrediting of institutions of higher education, higher 

education programs, or both; and

(ii) Has been listed by the Secretary as a nationally recognized accrediting agency on or before 

October 1, 1991.

(2) An accrediting agency that-

(i) Has a voluntary membership of institutions of higher education;

(ii) Has as a principal purpose the accrediting of institutions of higher education and that 

accreditation is used to provide a link to Federal HEA programs in accordance with 602.10; and

(iii) Satisfies the "separate and independent" requirements contained in paragraph (b) of this 

section;

(3) An accrediting agency that-

(i) Has a voluntary membership; and

(ii) Has as its principal purpose the accrediting of institutions of higher education or programs, 

and the accreditation it offers is used to provide a link to non-HEA Federal programs in accordance with 

602.10; 

(4) An accrediting agency that, for purposes of determining eligibility for title IV, HEA programs--
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(i)(A) Has a voluntary membership of individuals participating in a profession; or

(B) Has as its principal purpose the accrediting of programs within institutions that are 

accredited by another nationally recognized accrediting agency; and

(ii) Satisfies the "separate and independent" requirements contained in paragraph (b) of this 

section or obtains a waiver of those requirements under paragraph (d) of this section;

(b) For purposes of this section, the term "separate and independentmeansindependent" means

that—

(1) The members of the agency's decision-making body —, who decide the accreditation or 

preaccreditation status of institutions or programs, establish the agency's accreditation policies, or both

—, are not elected or selected by the board or chief executive officer of any related, associated, or 

affiliated trade association, professional organization, or membership organization and are not staff of 

the related, associated, or affiliated trade association, professional organizations, or membership 

organization;

(2) At least one member of the agency's decision-making body is a representative of the public, 

and at least one-seventh of thatthe body consists of representatives of the public;

(3) The agency has established and implemented guide linesguidelines for each member of the 

decision-making body to avoidincluding guidelines on avoiding conflicts of interest in making decisions;

(4) The agency's dues are paid separately from any dues paid to any related, associated, or 

affiliated trade association or membership organization; and

(5) The agency develops and determines its own budget, with no review by or consultation with 

any other entity or organization.

(c) The Secretary considers that any joint use of personnel, services, equipment, or facilities by 

an agency and a related, associated, or affiliated trade association or membership organization does not 

violate the “separate and independent” requirements in paragraph (b) of this section if

(1) The agency pays the fair market value for its proportionate share of the joint use; and

(2) The joint use does not compromise the independence and confidentiality of the accreditation 

process.

(d) For purposes of paragraph (a)(34) of this section, the Secretary may waive the “separate and 

independent” requirements in paragraph (b) of this section if the agency demonstrates that—

(1) The Secretary listed the agency as a nationally recognized agency on or before October 1, 1991 

and has recognized it continuously since that date;

(2) The related, associated, or affiliated trade association or membership organization plays no role 

in making or ratifying either the accrediting or policy decisions of the agency;

(3) The agency has sufficient budgetary and administrative autonomy to carry out its accrediting 

functions independently; and
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(4) The agency provides to the related, associated, or affiliated trade association or membership 

organization only information it makes available to the public.

(e) An agency seeking a waiver of the “separate and independent” requirements under paragraph 

(d) of this section must apply for the waiver each time the agency seeks recognition or continued 

recognition.

(Authority: 20 U.S.C. 1099b)

§602.15 Administrative and fiscal responsibilities.

The agency must have the administrative and fiscal capability to carry out its accreditation 

activities in light of its requested scope of recognition. The agency meets this requirement if the agency 

demonstrates that—-

(a) The agency has—-

(1) Adequate administrative staff and financial resources to carry out its accrediting 

responsibilities; 

(2) Competent and knowledgeable individuals, qualified by education andor experience in their 

own right and trained by the agency on their responsibilities, as appropriate for their roles, regarding 

the agency's standards, policies, and procedures, to conduct its on-site evaluations, apply or establish its 

policies, and make its accrediting and preaccrediting decisions, including, if applicable to the agency's 

scope, their responsibilities regarding distance education and correspondence education;courses; 

(3) Academic and administrative personnel on its evaluation, policy, and decision-making bodies, if 

the agency accredits institutions; 

(4) Educators and practitioners and/or employers on its evaluation, policy, and decision-making 

bodies, if the agency accredits programs or single-purpose institutions that prepare students for a 

specific profession; 

(5) Representatives of the public, which may include students, on all decision-making bodies; and 

(6) Clear and effective controls againstincluding guidelines to prevent or resolve conflicts of 

interest, or the appearance of conflicts of interest, by the agency's -

(i) Board members;

(ii) Commissioners; 

(iii) Evaluation team members; 

(iv) Consultants; 

(v) Administrative staff; and 

(vi) Other agency representatives; and 

(b) The agency maintains complete and accurate records of— -
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(1) Its last full accreditation or preaccreditation review of each institution or program, including onsite evaluation team reports, the institution's or program's responses to on-site reports, periodic review 

reports, any reports of special reviews conducted by the agency between regular reviews, and a copy of 

the institution's or program's most recent self-study; and

(2) All decisions letters issued made throughout an institution's or program's affiliation withby the 

agency regarding the accreditation and preaccreditation of any institution or program and any 

substantive changes, including all correspondence that is significantly related to those decisions.

(Approved by the Office of Management and Budget under control number 1845-0003) 

(Authority: 20 U.S.C. 1099b) 

[ 64[64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55426, Oct. 27, 2009]

Required Standards and Their Application

§602.16 Accreditation and preaccreditation standards.

(a) The agency must demonstrate that it has standards for accreditation, and preaccreditation, if 

offered, that are sufficiently rigorous to ensure that the agency is a reliable authority regarding the 

quality of the education or training provided by the institutions or programs it accredits. The agency 

meets this requirement if -

(1) The agency'sagency’s accreditation standards effectively addressclearly define its expectations 

for the quality of the institutioninstitutions or programprograms it accredits in the following areas:

(i) Success with respect to student achievement in relation to the institution's mission, which may 

include different standards for different institutions or programs, as established by the institution, 

including, as appropriate, consideration of State licensing examinations, course completion, and job 

placement rates.

(ii) Curricula.

(iii) Faculty. 

(iv) Facilities, equipment, and supplies. 

(v) Fiscal and administrative capacity as appropriate to the specified scale of operations. 

(vi) Student support services. 

(vii) Recruiting and admissions practices, academic calendars, catalogs, publications, grading, and 

advertising. 

(viii) Measures of program length and the objectives of the degrees or credentials offered. 

(ix) Record of student complaints received by, or available to, the agency. 

(x) Record of compliance with the institution's program responsibilities under tTitle IV of the Act, 

based on the most recent student loan default rate data provided by the Secretary, the results of 
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financial or compliance audits, program reviews, and any other information that the Secretary may 

provide to the agency; and 

(2) The agency's preaccreditation standards, if offered, are

(i) Are appropriately related to the agency's accreditation standards; and do

(ii) Do not permit the institution or program to hold preaccreditation status for more than five 

years before a final accreditation decision is made.

(b(b) Agencies are not required to apply the standards described in paragraph (a)(1)(x) of this 

section to institutions that do not participate in title IV, HEA programs. Under such circumstance, tThe 

agency’s grant of accreditation or preaccreditation issued under this section must specify that the grant, 

by request of the institution, does not include participation by the institution in title IV, HEA programs. 

(c) If the agency only accredits programs and does not serve as an institutional accrediting agency 

for any of those programs, its accreditation standards must address the areas in paragraph (a)(1) of this 

section in terms of the type and level of the program rather than in terms of the institution. 

(cd)(1) If the agency has or seeks to include within its scope of recognition the evaluation of the 

quality of institutions or programs offering distance education orcorrespondence, correspondence 

courses, or direct assessment education, the agency's standards must effectively address the quality of 

an institution's distance education or, correspondence courses, or direct assessment education in the 

areas identified in paragraph (a)(1) of this section. 

(2) The agency is not required to have separate standards, procedures, or policies for the 

evaluation of distance education or correspondence education.courses.

(d (e) If none of the institutions an agency accredits participates in any Titletitle IV, HEA program, 

or if the agency only accredits programs within institutions that are accredited by a nationally 

recognized institutional accrediting agency, the agency is not required to have the accreditation 

standards described in paragraphs (a)(1)(viii) and (a)(1)(x) of this section. 

(ef) An agency that has established and applies the standards in paragraph (a) of this section may 

establish any additional accreditation standards it deems appropriate. 

(fg) Nothing in paragraph (a) of this section restricts—-

(1) An accrediting agency from setting, with the involvement of its members, and applying 

accreditation standards for or to institutions or programs that seek review by the agency; or

(2) An institution from developing and using institutional standards to show its success with 

respect to student achievement, which achievement may be considered as part of any accreditation 

review.;

(3) Agencies from having separate standards regarding an institution’s process for approving curriculum

in order to enable programs to more effectively meet the recommendations of:

(i) Industry advisory boards that include employers who hire program graduates;

(ii) Widely recognized industry standards and organizations;
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(iii) Credentialing or other occupational registration or licensure; or

(iv) Employers in a given field or occupation in making hiring decisions.

(4) Agencies from having separate faculty standards for instructors teaching courses within a 

dual or concurrent enrollment program, as defined in 20 U.S.C. 7801, or career and technical education 

courses, as long as the instructors, in the agency’s judgment, are qualified by education or work 

experience for that role.

(Approved by the Office of Management and Budget under control number 1845-0003) 

(Authority: 20 U.S.C. 1099b) 

[ 64[64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55427, Oct. 27, 2009]

§602.17 Application of standards in reaching an accrediting decision.

The agency must have effective mechanisms for evaluating an institution's or program's compliance 

with the agency's standards before reaching a decision to accredit or preaccredit the institution or 

program. The agency meets this requirement if the agency demonstrates that it— -

(a) Evaluates whether an institution or program—

(1) Maintains clearly specified educational objectives that are consistent with its mission and 

appropriate in light of the degrees or certificates awarded; 

(2) Is successful in achieving its stated objectives; at both the institutional and program levels; and 

(3) Maintains degree and certificate requirements that at least conform to commonly accepted 

academic standards,; or the equivalent, including pilot programs in 602.18(b).

(b) Requires the institution or program to prepare, following guidance provided by the agency, an 

in-depth engage in a self-study process that includesassesses the assessment ofinstitution’s or 

program’s educational quality and the institution's or program's continuing efforts to improvesuccess in 

meeting its mission and objectives educational quality , highlights opportunities for improvement, and 

includes a plan for making those improvements, as applicable.

(c) Conducts at least one on-site review of the institution or program during which it obtains 

sufficient information to determine if the institution or program complies with the agency's standards; 

(d) Allows the institution or program the opportunity to respond in writing to the report of the onsite review; 

(e) Conducts its own analysis of the self-study and supporting documentation furnished by the 

institution or program, the report of the on-site review, the institution's or program's response to the 

report, and any other appropriate information substantiated by the agency from other sources to 

determine whether the institution or program complies with the agency's standards; 

(f) Provides the institution or program with a detailed written report that assesses—

Formatted: Font color: Auto
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(1) The the institution's or program's compliance with the agency's standards, including areas 

needing improvement; and , and the institution's or program's performance with respect to student 

achievement.

(2) The institution's or program's performance with respect to student achievement.

(g) Requires institutions that offer distance education or correspondence education to have 

processes in place through which the institution establishes that the student who registers in aany 

course offered via distance education or correspondence education course or program is the same 

student who participatesacademically engages in and completes the course or program and receives the 

academic credit. The agency meets this requirement if it—. ; 

(1) Requires institutions to verify the identity of a student who participates in class or coursework

by using, at the option of the institution, methods such as—

(i) A secure login and pass code;

(ii) Proctored examinations; and

(iii) New or other technologies and practices that are effective in verifying student identity; and 

(2(h) Makes clear in writing that institutions must use processes that protect student privacy and 

notify students of any projected additional student charges associated with the verification of student 

identity at the time of registration or enrollment. 

(Authority: 20 U.S.C. 1099b)

[ 64[64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55427, Oct. 27, 2009]

§602.18 Ensuring consistency in decision-making.

The agency must consistently apply and enforce standards that respect the stated mission of the 

institution, including religious mission, and that ensure that the education or training offered by an 

institution or program, including any offered through distance education or, correspondence courses, or 

direct assessment education, is of sufficient quality to achieve its stated objective for the duration of any 

accreditation or preaccreditation period granted by the agency. The agency meets this requirement if 

the agency—.

(a(a) The agency meets this requirement if the agency -

(1) Has written specification of the requirements for accreditation and preaccreditation that 

include clear standards for an institution or program to be accredited;

(b2) Has effective controls against the inconsistent application of the agency's standards;

(c3) Bases decisions regarding accreditation and preaccreditation on the agency's published 

standards;
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(d4) Has a reasonable basis for determining that the information the agency relies on for making 

accrediting decisions is accurate; and

(e5) Provides the institution or program with a detailed written report that clearly identifies any 

deficiencies in the institution's or program's compliance with the agency's standards.; and 

 (6) Publishes any policies for retroactive application of an accreditation decision, which must not 

provide for an effective date that predates either –

(i) aAn earlier denial by the agency of accreditation or preaccreditation to the institution or 

program, as applicable;, or 

(ii) tThe agency’s formal approval of the institution or program for consideration in the agency’s 

accreditation or preaccreditation process.

(b) Nothing in this part prohibits an agency, when special circumstances exist, to include 

innovative program delivery approaches or, when an undue hardship on students occurs, from applying

equivalent written standards, policies, and procedures that provide alternative means of satisfying one 

or more of the requirements set forth in 34 CFR 602.16, 602.17, 602.19, 602.20, 602.22 and 602.24, as 

compared with written standards, policies, and procedures the agency ordinarily applies, if-

(1) The alternative standards, policies, and procedures, and the selection of institutions or 

programs to which they will be applied, are approved by the agency’s decision-making body and 

otherwise meet the intent of the agency’s expectations and requirements; 

(2) The agency sets and applies equivalent goals and metrics for assessing the performance of 

institutions or programs;

(3) The agency’s process for establishing and applying the alternative standards, policies, 

procedures, is set forth in its published accreditation manuals; 

(4) The agency requires institutions or programs seeking the application of alternative standards 

to demonstrate the need for an alternative assessment approach, that students will receive equivalent 

benefit, and that students will not be harmed through such application; and 

(c) Nothing in this part prohibits an agency from permitting the institution or program to be out 

of compliance with one or more of its standards, policies and procedures adopted in satisfaction of 34 

CFR 602.16, 602.17, 602.19, 602.20, 602.22, and 602.24 for a period of time, as determined by the 

agency, not to exceed three years unless the agency determines there is good cause to extend the 

period of time, and if –

(1) The agency and the institution or program can show that the circumstances requiring the 

period of non-compliance are beyond the institution’s or program’s control, such as –

(i) A natural disaster or other catastrophic event significantly impacting an institution’s or 

program’s operations;

(ii) Accepting students from another institution that is implementing a teach-out or closing;,
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(iii) Significant and documented local or national economic changes, such as an economic 

recession or closure of a large local employer;

(iv) Changes relating to State licensure requirements;

(v) The normal application of the agency’s standards creates an undue hardship on students; or 

(vi) Instructors who do not meet the agency’s typical faculty standards, but who are otherwise 

qualified by education or work experience, to teach courses within a dual or concurrent enrollment 

program, as defined in 20 U.S.C. 7801, or career and technical education courses.

(2) The grant of the extended period of non-compliance is approved by the agency’s decisionmaking body;

(3) The agency projects that the institution or program has the resources necessary to achieve 

compliance with the standard, policy, or procedure postponed within the time allotted; and

(4) The institution or program demonstrates to the satisfaction of the agency that the extended 

period of non-compliance will not –

(i) Contribute to the cost of the program to the student without the student’s consent;

(ii) Create and undue hardship or harm on students; or

(iii) Compromise the program’s academic quality.

(Authority: 20 U.S.C. 1099b) 

[ 64[64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55427, Oct. 27, 2009]

§602.19 Monitoring and reevaluation of accredited institutions and programs.

(a) The agency must reevaluate, at regularly established intervals, the institutions or programs it 

has accredited or preaccredited. 

(b) The agency must demonstrate it has, and effectively applies, a set of monitoring and evaluation 

approaches that enablesenable the agency to identify problems with an institution's or program's 

continued compliance with agency standards and that takestake into account institutional or program 

strengths and stability. These approaches must include periodic reports, and collection and analysis of 

key data and indicators, identified by the agency, including, but not limited to, fiscal information and 

measures of student achievement, consistent with the provisions of §602.16(f). This provision does not 

require institutions or programs to provide annual reports on each specific accreditation criterion.

(c) Each agency must monitor overall growth of the institutions or programs it accredits and, at 

least annually, collect headcount enrollment data from those institutions or programs. 

(d) Institutional accrediting agencies must monitor the growth of programs at institutions 

experiencing significant enrollment growth, as reasonably defined by the agency. 

(e) Any agency that has notified the Secretary of a change in its scope in accordance with § 

602.27(a)(5) must monitor the headcount enrollment of each institution it has accredited that offers 
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distance education or correspondence education.courses. The Secretary will require a review, at the 

next meeting of the National Advisory Committee on Institutional Quality and Integrity, of any change in 

scope undertaken by an agency if the enrollment of an institution that offers distance education or 

correspondence courses that is accredited by such agency increases by 50 percent or more within any 

one institutional fiscal year. If any such institution has experienced an increase in headcount enrollment 

of 50 percent or more within one institutional fiscal year, the agency must report that information to the 

Secretary within 30 days of acquiring such data. 

(Authority: 20 U.S.C. 1099b) 

[ 64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55427, Oct. 27, 2009]

§602.20 Enforcement of standards.

(a) If the agency’s review of an institution or program under any standard indicates that the 

institution or program is not in compliance with that standard, the agency must— --

(1) Immediately initiate adverse action against the Follow its written policy for notifying the 

institution or program; or of the finding of noncompliance;

(2) Require Provide the institution or program to take appropriate action to bring itselfwith a 

written timeline for coming into compliance with the agency's standards within a time period that is 

reasonable, as determined by the agency’s decision-making body, based on the nature of the finding,

the stated mission, and educational objectives of the institution or program. The timeline may include 

intermediate checkpoints on the way to full compliance and must not exceed—( 150 percent of the: -

(i) Twelve months, ifLlength of the program in the case of a programmatic accrediting agency, or 

(ii) Llength of the longest program offered byat the institution, is less than one year in lengththe 

case of an institutional accrediting agency;

(ii) Eighteen months, if the program, or the longest program offered by the institution, is at least 

one year, but less than two years, in length; or

(iii) Two years, if the program, or the longest program offered by the institution, is at least two 

years in length.

(b(3) Follow its written policies and procedures for granting a good cause extension that may 

exceed the standard timeframe described in paragraph (a)(2) when such an extension is determined by

the agency to be warranted; 

(4) Have a written policy to evaluate and approve or disapprove monitoring or compliance reports 

it requires, provide ongoing monitoring, if warranted, and evaluate an institution’s or program’s 

progress in resolving the finding of noncompliance;

(b) Notwithstanding paragraph (a), the agency must have and follow its policy for taking an 

immediate adverse action when the agency has determined such action is warranted.
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 (c) If the institution or program does not bring itself into compliance within the period specified

period,in paragraph (a), the agency must take immediate adverse action against the institution or 

program, but may maintain the institution’s or program’s accreditation or preaccreditation until the 

institution or program has had reasonable time to complete the activities in its teach-out agreement to 

assist students in transferring or completing their programs.

(d) An agency that accredits institutions may limit the adverse or other action unless the agency,to 

particular programs that are offered by the institution or to particular additional locations of an 

institution, without necessarily taking action against the entire institution and all of its programs, 

provided the noncompliance was limited to that particular program or location. 

(e) All adverse actions taken under this subpart are subject to the arbitration requirements in 20 

U.S.C. 1099b(e).

(f) An agency is not responsible for good cause, extends the period for achieving enforcing 

requirements in 34 CFR 668.14, 668.15, 668.16, 668.41, or 668.46, but if, in the course of an agency’s 

work, it identifies instances or potential instances of non- compliance with any of these requirements, it 

must notify the Department.

(g) The Secretary may not require an agency to take action against an institution or program that 

does not participate in any title IV, HEA or other Federal program as a result of a requirement specified 

in this Part.

(Authority: 20 U.S.C. 1099b)

§602.21 Review of standards.

(a) The agency must maintain a comprehensive systematic program of review that involves all 

relevant constituencies and that demonstrates that its standards are adequate to evaluate the quality of 

the education or training provided by the institutions and programs it accredits and relevant to the 

educational or training needs of students. 

(b) The agency determines the specific procedures it follows in evaluating its standards, but the 

agency must ensure that its program of review—

(1) Is comprehensive;

(2) Occurs at regular, yet reasonable, intervals or on an ongoing basis;

(3) Examines each of the agency's standards and the standards as a whole; and

(4) Involves all of the agency's relevant constituencies in the review and affords them a meaningful 

opportunity to provide input into the review.

(c) If the agency determines, at any point during its systematic program of review, that it needs to 

make changes to its standards, the agency must initiate action within 12 months to make the changes 
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and must complete that action within a reasonable period of time. (b) Before finalizing any changes to 

its standards, the agency must— -

(1) Provide notice to all of the agency's relevant constituencies, and other parties who have made 

their interest known to the agency, of the changes the agency proposes to make; 

(2) Give the constituencies and other interested parties adequate opportunity to comment on the 

proposed changes; and

(3) Take into account and be responsive to any comments on the proposed changes submitted 

timely by the relevant constituencies and by other interested parties.

(Authority: 20 U.S.C. 1099b)

Required Operating Policies and Procedures

§602.22 Substantive changechanges and other reporting requirements.

(a) If the agency accredits institutions, it must maintain adequate substantive change policies that 

ensure that any substantive change to the educationalinstitution’s or program's mission, program, or 

programs of an institution after the agency has accredited or preaccredited the institution does not 

adversely affect the capacity of the institution to continue to meet the agency's standards. The agency 

meets this requirement if— -

(1) The agency requires the institution to obtain the agency's approval of the substantive change 

before the agency includes the change in the scope of accreditation or preaccreditation it previously 

granted to the institution; and

(2) The agency's definition of substantive change includescovers high-impact, high-risk changes, 

including at least the following types of change:- 

(i) Any substantial change in the established mission or objectives of the institution or its programs.

(ii) Any change in the legal status, form of control, or ownership of the institution.

(iii) The addition of courses or programs that represent a significant departure from the existing 

offerings ofor educational programs, or method of delivery, from those that were offered when 

the agency last evaluated the institution.

(iv) The addition of graduate programs of study at a degree or credential level different from by an 

institution that which is included previously offered only undergraduate programs or certificates.

(v) A change in the institution's current accreditation way an institution measures student 

progress, including whether the institution measures progress in clock hours or preaccreditationcredithours, semesters, trimesters, or quarters; or uses time-based or non-time based methods.

(v) A change from clock hours to credit hours.
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(vi) A substantial increase in the number of clock hours or credit hours awarded, or an increase in 

the level of credential awarded, for successful completion of a program.

(vii) If the agency's accreditation of an institution enables the institution to seek eligibility to 

participate in title IV, HEA programs, the entering into a contract under which an institution or 

organization not certified to participate in the title IV, HEA programs offers more than 25 percent of one 

or more of the accredited institution's educational programs.

(viii)(A) If the agency's accreditation of an institution enables it to seek eligibility to participate in 

title IV, HEA programs , the establishment of an additional location at which the institution offers at 

least percent of an educational program. The addition of such a location must be approved by the 

agency in accordance with paragraph (c) of this section unless the accrediting agency determines, and 

issues a written determination stating that the institution has—

(1) Successfully completed at least one cycle of accreditation of maximum length offered by the 

agency and one renewal, or has been accredited for at least ten years;

(2) At least three additional locations that the agency has approved; and

(3) Met criteria established by the agency indicating sufficient capacity to add additional locations 

without individual prior approvals, including at a minimum satisfactory evidence of a system to ensure 

quality across a distributed enterprise that includes—

(i) Clearly identified academic control;

(ii) Regular evaluation of the locations;

(iii) Adequate faculty, facilities, resources, and academic and student support systems;

(iv) Financial stability; and

(v) Long-range planning for expansion.

(B) The agency's procedures for approval of an additional location, pursuant to paragraph 

(a)(2)(viii)(A) of this section, must require timely reporting to the agency of every additional location 

established under this approval.

(C) Each agency determination or redetermination to preapprove an institution's addition of 

locations under paragraph (a)(2)(viii)(A) of this section may not exceed five years.

(D) The agency may not preapprove an institution's addition of locations under paragraph 

(a)(2)(viii)(A) of this section after the institution undergoes a change in ownership resulting in a change 

in control as defined in 34 CFR 600.31 until the institution demonstrates that it meets the conditions for 

the agency to preapprove additional locations described in this paragraph.
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(E) The agency must have an effective mechanism for conducting, at reasonable intervals, visits to 

a representative sample of additional locations approved under paragraph (a)(2)(viii)(A) of this section. 

(ix) (vii)The acquisition of any other institution or any program or location of another institution.

(xviii) The addition of a permanent location at a site at which the institution is conducting a teachout for students of another institution that has ceased operating before all students have completed 

their program of study.

(b(ix) The addition of each new location or branch campus, except as provided in paragraph (c) of 

this section. The agency’s review must include assessment of the institution’s fiscal and administrative 

capability to operate the location or branch campus, the regular evaluation of locations, and verification 

of the following:

(A) Academic control is clearly identified by the institution; 

(B) The institution has adequate faculty, facilities, resources, and academic and student support 

systems in place; 

(C) The institution is financially stable; and 

(D) The institution had engaged in long-range planning for expansion.

(x) Entering into a written arrangement under 34 CFR 668.5 under which an institution or 

organization not certified to participate in the title IV, HEA programs offers more than 25 and up to 50 

percent of one or more of the accredited institution's educational programs; and

(3)(i)For substantive changes under only paragraphs (a)(2), (iii), (v), (vi), (viii), or (x), and additions 

of locations that are not branch campuses, the agency’s decision making body may designate agency

senior staff to approve or disapprove the request in a timely, fair, and equitable manner; and

(ii) In the case of a request under paragraph (a)(2)(x), the agency must make a final decision within 

90 days of receipt of a materially complete request, unless the agency or its staff determine significant 

circumstances related to the substantive change require a review by the agency’s decision making body

to occur within 180 days.

(b) Institutions that have been placed on probation or equivalent status, have been subject to 

negative action by the agency over the prior three academic years, or are under a provisional 

certification, as provided in 34 CFR 668.13subject to sanction by the Department, must receive prior 

approval for the following additional substantive changes (all other institutions must report these 

changes within 30 days to their accrediting agency):

(1) A change in an existing program’s method of delivery; 

(2) A change of 25 percent or more of a program since the agency’s most recent accreditation

review;

(3) The development of customized pathways or abbreviated or modified courses or programs to –
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(i) Accommodate and recognize a student’s’ existing knowledge, such as knowledge attained 

through employment or military service; and 

(ii) Close competency gaps between demonstrated prior knowledge or competency and the full 

requirements of a particular course or program.

(4) Entering into a written arrangement under 34 CFR 668.5 under which an institution or 

organization not certified to participate in the title IV, HEA programs offers up to 25 percent of one or 

more of the accredited institution's educational programs. 

(c) Institutions that have received agency approval for the addition of a first additional location or 

branch campus as provided in paragraph (a)(2)(ix) of this section, that have not been placed on 

probation or equivalent status or been subject to a negative action by the agency over the prior three 

academic years, and that are under a provisional certification, as provided in 34 CFR 668.13not subject 

to sanction by the Department, need not apply for agency approval of subsequent additions of locations 

and branch campuses, and may report these changes to the accrediting agency within 30 days, if the 

institution has met criteria established by the agency indicating sufficient capacity to add additional 

locations or branch campuses without individual prior approvals, including at a minimum satisfactory 

evidence of a system to ensure quality across a distributed enterprise that includes—

(1) Clearly identified academic control;

(2) Regular evaluation of the locations;

(3) Adequate faculty, facilities, resources, and academic and student support systems;

(4) Financial stability; and

(5) Long-range planning for expansion.

(d) The agency must have an effective mechanism for conducting, at reasonable intervals, visits to 

a representative sample of additional locations approved under paragraphs (a)(2)(viii) and (a)(2)(ix) of 

this section. 

(e) The agency may determine the procedures it uses to grant prior approval of the substantive 

change. However, these procedures must specify an effective date, which is not retroactive, on which 

the change is included in the program's or institution's accreditation, and that does not pre-date either 

an earlier agency denial of the substantive change, or the agency’s formal approval of the substantive 

change for consideration by the agency for inclusion in the program’s or institution’s accreditation or 

preaccreditation. An agency may designate the date of a change in ownership as the effective date of its 

approval of that substantive change if the accreditation decision is made within 30 days of the change in 

ownership. Except as provided in paragraph (cparagraphs (d) and (f) of this section, these procedures 

may, but need not, require a visit by the agency.

(c) Except as provided in paragraph (a)(2)(viii)(A) of this section, if (f) If the agency's accreditation 

of an institution enables the institution to seek eligibility to participate in title IV, HEA programs, the 

agency's procedures for the approval of an additional location that is not a branch campus where at 

least 50 percent of an educational program is offered must provide for a determination of the 
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institution's fiscal and administrative capacity to operate the additional location. In addition, the 

agency's procedures must include—-

(1) AConduct a visit, within six months, to each additional location the institution establishes, if the 

institution— – 

(i) Has a total of three or fewer additional locations; 

(ii) Has not demonstrated, to the agency's satisfaction, that it has a proven record of effective 

educational oversight ofthe additional locationslocation is meeting all of the agency’s standards that 

apply to that additional location; or 

(iii) Has been placed on warning, probation, or show cause by the agency or is subject to some 

limitation by the agency on its accreditation or preaccreditation status; 

(2) An effectiveA mechanism for conducting, at reasonable intervals, visits to a representative 

sample of additional locations of institutions that operate more than three additional locations; and 

(3) An effectiveA mechanism, which may, at the agency's discretion, include visits to additional 

locations, for ensuring that accredited and preaccredited institutions that experience rapid growth in 

the number of additional locations maintain educational quality. 

(dg) The purpose of the visits described in paragraph (cf) of this section is to verify that the 

additional location has the personnel, facilities, and resources it claimed to have in its application to the 

agency for approval of the additional location. 

(h) The agency's substantive change policy must define when the changes made or proposed by an 

institution are or would be sufficiently extensive to require the agency to conduct a new comprehensive 

evaluation of that institution.

(Authority: 20 U.S.C. 1099b) 

[ 64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55428, Oct. 27, 2009]

§602.23 Operating procedures all agencies must have.

(a) The agency must maintain and make available to the public written materials describing— -

(1) Each type of accreditation and preaccreditation it grants; 

(2) The procedures that institutions or programs must follow in applying for accreditation or

preaccreditation;, preaccreditation, or substantive changes and the sequencing of those steps relative to 

any applications or decisions required by States or the Department relative to the agency’s 

preaccreditation, accreditation or substantive change decisions; 

(3) The standards and procedures it uses to determine whether to grant, reaffirm, reinstate, 

restrict, deny, revoke, terminate, or take any other action related to each type of accreditation and 

preaccreditation that the agency grants; 
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(4) The institutions and programs that the agency currently accredits or preaccredits and, for each 

institution and program, the year the agency will next review or reconsider it for accreditation or 

preaccreditation; and 

(5) TheA list of the names, academic and professional qualifications, and relevant employment and 

organizational affiliations of— -

(i) The members of the agency's policy and decision-making bodies; and 

(ii) The agency's principal administrative staff. 

(b) In providing public notice that an institution or program subject to its jurisdiction is being 

considered for accreditation or preaccreditation, the agency must provide an opportunity for third-party 

comment concerning the institution's or program's qualifications for accreditation or preaccreditation. 

At the agency's discretion, third-party comment may be received either in writing or at a public hearing, 

or both. 

(c) The accrediting agency must—

(1) Review in a timely, fair, and equitable manner any complaint it receives against an accredited 

institution or program that is related to the agency's standards or procedures. The agency may not 

complete its review and make a decision regarding a complaint unless, in accordance with published 

procedures, it ensures that the institution or program has sufficient opportunity to provide a response 

to the complaint; 

(2) Take follow-up action, as necessary, including enforcement action, if necessary, based on the 

results of its review; and 

(3) Review in a timely, fair, and equitable manner, and apply unbiased judgment to, any complaints 

against itself and take follow-up action, as appropriate, based on the results of its review. 

(d) If an institution or program elects to make a public disclosure of its accreditation or 

preaccreditation status, the agency must ensure that the institution or program discloses that status 

accurately, including the specific academic or instructional programs covered by that status and the 

name, address, and telephone number ofcontact information for the agency. 

(e) The accrediting agency must provide for the public correction of incorrect or misleading 

information an accredited or preaccredited institution or program releases about— -

(1) The accreditation or preaccreditation status of the institution or program; 

(2) The contents of reports of on-site reviews; and 

(3) The agency's accrediting or preaccrediting actions with respect to the institution or program. 

(f(f) (1) If preaccreditation is offered --

(i) Tthe agency’s preaccreditation policies limit the status to institutions or programs that the 

agency has determined are likely to succeed in obtaining accreditation. 

(ii) tThe agency must require all preaccredited institutions to have a teach-out plan, which must 

ensure students completing the teach-out would meet curricular requirements for professional 
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licensure or certification, if any, and which includes a list of academic programs offered by the 

institution, and the names of other institutions that offer similar programs and that could potentially 

enter into a teach-out agreement with the institution. 

(iii) Aan agency that denies accreditation to an institution it has preaccredited may maintain the 

institution’s preaccreditation for currently enrolled students until the institution has had a reasonable 

time to complete the activities in its teach-out plan to assist students in transferring or completing their 

programs, but for no more than 120 days unless approved by the agency for good cause; and

(iv) Tthe agency may not move an accredited institution or program from accredited to 

preaccredited status unless, following the loss of accreditation, the institution or program applies for 

initial accreditation and is awarded preaccreditation status under the new application. Institutions that 

participated in the Ttitle IV, HEA programs before the loss of accreditation are subject to the 

requirements of 34 CFR 600.11(c).

(2) All credits and degrees earned and issued by an institution or program holding 

preaccreditation from a nationally recognized agency are considered by the Secretary to be from an 

accredited institution or program.

(g) The agency may establish any additional operating procedures it deems appropriate. At the 

agency's discretion, these may include unannounced inspections. 

(Approved by the Office of Management and Budget under control number 1845-0003) 

(Authority: 20 U.S.C. 1099b) 

[ 64[64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55428, Oct. 27, 2009]

§602.24 Additional procedures certain institutional accreditorsagencies must 

have.

If the agency is an institutional accrediting agency and its accreditation or preaccreditation enables 

those institutions to obtain eligibility to participate in Titletitle IV, HEA programs, the agency must 

demonstrate that it has established and uses all of the following procedures: 

(a) Branch campus. (1) The agency must require the institution to notify the agency if it plans to 

establish a branch campus and to submit a business plan for the branch campus that describes—

(i1) The educational program to be offered at the branch campus;

(ii2) The projected revenues and expenditures and cash flow at the branch campus; and.

(iii) The operation, management, and physical resources at the branch campus.

(2) The agency may extend accreditation to the branch campus only after it evaluates the business 

plan and takes whatever other actions it deems necessary to determine that the branch campus has 

sufficient educational, financial, operational, management, and physical resources to meet the agency's 

standards.
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(3)(b) Site visits. The agency must undertake a site visit to thea new branch campus or following a 

change of ownership as soon as practicable, but no later than six months after the establishment of that 

campus. or the change of ownership. 

(b) Change in ownership. The agency must undertake a site visit to an institution that has 

undergone a change of ownership that resulted in a change of control as soon as practicable, but no 

later than six months after the change of ownership.

(c) Teach-out plans and agreements.

(1) The agency must require an institution it accredits or preaccredits to submit a teach-out plan as 

defined in 34 CFR 600.2 to the agency for approval upon the occurrence of any of the following events: 

(i

(i) For a non-profit institution, the Secretary notifies the agency of a determination by the 

institution’s independent auditor expressing doubt with the institution’s ability to operate as a going 

concern or indicating an adverse opinion or a finding of material weakness related to financial stability;

(ii) For a proprietary institution, the Secretary notifies the agency that the institution has a 

composite score of less than 1.0 as calculated under 34 CFR 668.172;

(iii) The agency acts to place the institution on probation or equivalent status; or

(iv) The Secretary notifies the agency that the institution is participating in title IV, HEA programs 

under a provisional program participation agreement and the Secretary has required a teach-out plan as 

a condition of participation.

(2) The agency must require an institution it accredits or preaccredits to submit a teach-out plan

and, if possible, teach-out agreement as defined in 34 CFR 600.2 to the agency for approval upon the 

occurrence of any of the following events:

(i) The Secretary notifies the agency that it has placed the institution on the reimbursement 

payment method under 34 CFR 668.162(c) or the heightened cash monitoring payment method 

requiring the Secretary’s review of the institution’s supporting documentation under 34 CFR 

668.162(d)(2); 

(ii) The Secretary notifies the agency that the Secretary has initiated an emergency action against 

an institution, in accordance with section 487(c)(1)(G) of the HEA, or an action to limit, suspend, or 

terminate an institution participating in any title IV, HEA program, in accordance with section 

487(c)(1)(F) of the HEA, and that a teach-out plan is required. ;

(ii (iii) The agency acts to withdraw, terminate, or suspend the accreditation or preaccreditation of 

the institution.;

(iiiiv) The institution notifies the agency that it intends to cease operations entirely or close a 

location that provides one hundred percent of at least one program., including if the location is being 

moved and is considered by the Secretary to be a closed school; or
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(ivv) A State licensing or authorizing agency notifies the agency that an institution's license or legal 

authorization to provide an educational program has been or will be revoked. 

(23) The agency must evaluate the teach-out plan to ensure it provides for the equitable 

treatmentincludes a list of students under criteria establishedacademic programs offered by the agency, 

specifies additional charges, if anyinstitution, and provides for notification tothe names of other 

institutions that offer similar programs and that could potentially enter into a teach-out agreement with

the students of any additional charges. institution.

(34) If the agency approves a teach-out plan that includes a program or institution that is 

accredited by another recognized accrediting agency, it must notify that accrediting agency of its 

approval. 

(45) The agency may require an institution it accredits or preaccredits to enter into a teach-out 

agreement as part of its teach-out plan. 

(5(6) The agency must require the closing institution to include in its teach-out agreement–

(i) A complete list of students currently enrolled in each program at the institution and the 

program requirements each student has completed;

(ii) A plan to provide all potentially eligible students with information about how to obtain a closed 

school discharge and, if applicable, information on State refund policies;

(iii) A record retention plan to be provided to all enrolled students that delineates the final 

disposition of teach-out records (e.g., student transcripts, billing, financial aid records);

(iv) Information on the number and types of credits the teach-out institution is willing to accept; 

and

(v) A clear statement to students of the tuition and fees of the educational program at the teachout institution.

(7) The agency must require an institution it accredits or preaccredits that enters into a teach-out 

agreement, either on its own or at the request of the agency, to submit that teach-out agreement for 

approval. The agency may approve the teach-out agreement only if the agreement is between 

institutions that are accredited or preaccredited by a nationally recognized accrediting agencymeets the 

requirements of 34 CFR 600.2 and this section, is consistent with applicable standards and regulations, 

and provides for the equitable treatment of students being served by ensuring that— the teach-out 

institution-

(i) The teach-out institution hasHas the necessary experience, resources, and support services to—

(A) Provide provide an educational program that is of acceptable quality and reasonably similar in

content, structuredelivery modality, and scheduling to that provided by the institution that is ceasing 

operations either entirely or at one of its locations; however, while an option via an alternate delivery 

modality may be made available to students, such an option is not sufficient unless an option via the 

same delivery modality as the original educational program is also provided; 
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(B) Remain stable,(ii) Has the capacity to carry out its mission, and meet all obligations to existing 

students; and

(ii) The teach-out institution demonstrates (iii) Demonstrates that it can provide students access to 

the program and services without—

(A) Without requiring them to move or travel for substantial distances or durations and that

(B) That it will provide students with information about additional charges, if any. 

(8) The agency must not permit an institution to serve as a teach-out institution under the 

following conditions:

(i) The institution is subject to the conditions in paragraphs (c)(1) or (c)(2); or

(ii) The institution is under investigation related to academic quality, misrepresentation, fraud, or 

other severe matters by a law enforcement agency.

(9) The agency is permitted to waive requirements regarding the percentage of credits which must 

be earned by a student at the institution awarding the educational credential if the student is 

completing his or her program through a written teach-out agreement.

(10) The agency must require the institution to provide copies of all notifications from the 

institution related to the institution’s closure or to teach-out options to ensure the information 

accurately represents students’ ability to transfer credits and may require corrections.

(d) Closed institution. If an institution the agency accredits or preaccredits closes without a teachout plan or agreement, the agency must work with the Department and the appropriate State agency, to 

the extent feasible, to assist students in finding reasonable opportunities to complete their education 

without additional charges. 

(e) Transfer of credit policies. The accrediting agency must confirm, as part of its review for initial 

accreditation or preaccreditation, or renewal of accreditation, that the institution has transfer of credit 

policies that—-

(1) Are publicly disclosed in accordance with §668.43(a)(11); and

(2) Include a statement of the criteria established by the institution regarding the transfer of credit 

earned at another institution of higher education.

(f) Credit-hour policies. The Agency designations. In its accrediting practice, the agency, as part

must -

(1) Adopt and apply the definitions of its review“branch campus” and “additional location” in 34 

CFR 600.2; 

(2) On the Secretary’s request, conform its designations of an institution’s branch campuses and 

additional locations with the Secretary’s if it learns its designations diverge; and
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(3) Ensure that it does not accredit or preaccredit an institution for initial accreditation or 

preaccreditation or renewalcomprising fewer than all of accreditation, must conduct an effective review 

and evaluation of the reliability and accuracy of the institution's assignment of credit hoursthe 

programs, branch campuses and locations of an institution as certified for title IV participation by the 

Secretary, except with notice to and permission from the Secretary.

(1) The accrediting agency meets this requirement if—

(i) It reviews the institution's—

(A) Policies and procedures for determining the credit hours, as defined in 34 CFR 600.2, that the 

institution awards for courses and programs; and

(B) The application of the institution's policies and procedures to its programs and coursework; and

(ii) Makes a reasonable determination of whether the institution's assignment of credit hours 

conforms to commonly accepted practice in higher education.

(2) In reviewing and evaluating an institution's policies and procedures for determining credit hour 

assignments, an accrediting agency may use sampling or other methods in the evaluation, sufficient to 

comply with paragraph (f)(1)(i)(B) of this section.

(3) The accrediting agency must take such actions that it deems appropriate to address any 

deficiencies that it identifies at an institution as part of its reviews and evaluations under paragraph 

(f)(1)(i) and (ii) of this section, as it does in relation to other deficiencies it may identify, subject to the 

requirements of this part.

(4) If, following the institutional review process under this paragraph (f), the agency finds systemic 

noncompliance with the agency's policies or significant noncompliance regarding one or more programs 

at the institution, the agency must promptly notify the Secretary.

(Approved by the Office of Management and Budget under control number 1845-0003) 

(Authority: 20 U.S.C. 1099b) 

[ 64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55428, Oct. 27, 2009; 75 FR 66947, Oct. 29, 2010]

§602.25 Due process.

The agency must demonstrate that the procedures it uses throughout the accrediting process satisfy 

due process. The agency meets this requirement if the agency does the following: 

(a) Provides adequate written specification of its requirements, including clear standards, for an 

institution or program to be accredited or preaccredited. 

(b) Uses procedures that afford an institution or program a reasonable period of time to comply 

with the agency's requests for information and documents. 
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(c) Provides written specification of any deficiencies identified at the institution or program 

examined. 

(d) Provides sufficient opportunity for a written response by an institution or program regarding 

any deficiencies identified by the agency, to be considered by the agency within a timeframe 

determined by the agency, and before any adverse action is taken. 

(e) Notifies the institution or program in writing of any adverse accrediting action or an action to 

place the institution or program on probation or show cause. The notice describes the basis for the 

action. 

(f) Provides an opportunity, upon written request of an institution or program, for the institution or 

program to appeal any adverse action prior to the action becoming final. 

(1) The appeal must take place at a hearing before an appeals panel that— -

(i) May not include current members of the agency's decision-making body that took the initial 

adverse action;

(ii) Is subject to a conflict of interest policy; 

(iii) Does not serve only an advisory or procedural role, and has and uses the authority to make the 

following decisions: to affirm, amend, or reverse remand adverse actions of the original decisionmaking body; and 

(iv) Affirms, amends, reverses, or remands the adverse action. A decision to affirm, or amend, or 

reverse the adverse action is implemented by the appeals panel or by the original decision-making body, 

at the agency's option. In; however, in the event of a decision to remand the adverse action to the 

original decision-making body for further consideration, the appeals panel must identify specific issues 

thatexplain the basis for a decision that differs from that of the original decision-making body must 

address. In a decision that is implemented by or remanded toand the original decision-making body, 

that body must in a remand must act in a manner consistent with the appeals panel's decisions or 

instructions. 

(2) The agency must recognize the right of the institution or program to employ counsel to 

represent the institution or program during its appeal, including to make any presentation that the 

agency permits the institution or program to make on its own during the appeal. 

(g) The agency notifies the institution or program in writing of the result of its appeal and the basis 

for that result. 

(h)(1) The agency must provide for a process, in accordance with written procedures, through 

which an institution or program may, before the agency reaches a final adverse action decision, seek 

review of new financial information if all of the following conditions are met: 

(i) The financial information was unavailable to the institution or program until after the decision 

subject to appeal was made. 

(ii) The financial information is significant and bears materially on the financial deficiencies 

identified by the agency. The criteria of significance and materiality are determined by the agency. 
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(iii) The only remaining deficiency cited by the agency in support of a final adverse action decision 

is the institution's or program's failure to meet an agency standard pertaining to finances. 

(2) An institution or program may seek the review of new financial information described in 

paragraph (h)(1) of this section only once and any determination by the agency made with respect to 

that review does not provide a basis for an appeal. 

(Authority: 20 U.S.C. 1099b) 

[ 74[74 FR 55429, Oct. 27, 2009]

§602.26 Notification of accrediting decisions.

The agency must demonstrate that it has established and follows written procedures requiring it to 

provide written notice of its accrediting decisions to the Secretary, the appropriate State licensing or 

authorizing agency, the appropriate accrediting agencies, and the public. The agency meets this 

requirement if the agency, following its written procedures—

...

(c) Provides written notice to the public of the decisions listed in paragraphs (b)(1), (b)(2), and 

(b)(3) of this section within 24 hoursone business day of its notice to the institution or program; 

(d) For any decision listed in paragraph (b)(2) of this section, makes available to the Secretary, the 

appropriate State licensing or authorizing agency, and the public, no later than 60 days after the 

decision, a brief statement summarizing the reasons for the agency's decision and the official comments 

that the affected institution or program may wish to make with regard to that decision, or evidence that 

the affected institution has been offered the opportunity to provide official comment. 

(e) Notifies the Secretary, the appropriate State licensing or authorizing agency, the appropriate 

accrediting agencies, and, upon request, the public if an accredited or preaccredited institution or 

program -

(1) Decides to withdraw voluntarily from accreditation or preaccreditation, within 3010 business

days of receiving notification from the institution or program that it is withdrawing voluntarily from 

accreditation or preaccreditation; or 

(2) Lets its accreditation or preaccreditation lapse, within 3010 business days of the date on which 

accreditation or preaccreditation lapses. 

(Approved by the Office of Management and Budget under control number 1845-0003) 

(Authority: 20 U.S.C. 1099b) 

[ 64[64 FR 56617, Oct. 20, 1999, as amended at 74 FR 55429, Oct. 27, 2009]

§602.27 Other information an agency must provide the Department.

(a) The agency must submit to the Department—
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(1) A copylist of any annual report it prepares;

(2) A copy, updated annually, of its directory of accredited and preaccredited institutions and 

programs, which may be provided electronically; 

(3 (2) A summary of the agency's major accrediting activities during the previous year (an annual 

data summary), if requested by the Secretary to carry out the Secretary's responsibilities related to this 

part; 

(43) Any proposed change in the agency's policies, procedures, or accreditation or preaccreditation 

standards that might alter its— -

(i) Scope of recognition, except as provided in paragraph (a)(54) of this section; or 

(ii) Compliance with the criteria for recognition; 

(54) Notification that the agency has expanded its scope of recognition to include distance 

education or correspondence educationcourses as provided in section 496(a)(4)(B)(i)(I) of the HEA. Such 

an expansion of scope is effective on the date the Department receives the notification; 

(65) The name of any institution or program it accredits that the agency has reason to believe is 

failing to meet its title IV, HEA program responsibilities or is engaged in fraud or abuse, along with the 

agency's reasons for concern about the institution or program; and 

(76) If the Secretary requests, information that may bear upon an accredited or preaccredited 

institution's compliance with its title IV, HEA program responsibilities, including the eligibility of the 

institution or program to participate in title IV, HEA programs. 

(b) If an agency has a policy regarding notification to an institution or program of contact with the 

Department in accordance with paragraph (a)(65) or (a)(76) of this section, it must provide for a case-bycase review of the circumstances surrounding the contact, and the need for the confidentiality of that 

contact. Upon a specific request by When the Department, determines a compelling need for 

confidentiality the agency must consider that contact confidential upon specific request of the 

Department. 

(Authority: 20 U.S.C. 1099b) 

[ 74[74 FR 55430, Oct. 27, 2009]

§602.28 Regard for decisions of States and other accrediting agencies.

...

(Approved by the Office of Management and Budget under control number 1845-0003) 

(Authority: 20 U.S.C. 1099b)

Subpart C—The Recognition Process

SOURCE: 74 FR 55430, Oct. 27, 2009, unless otherwise noted.
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Application and Review by Department Staff

§602.30 Activities covered by recognition procedures.[Reserved]

Recognition proceedings are administrative actions taken on any of the following matters:

(a) Applications for initial or continued recognition

under §602.31(a).

(b) Applications for an expansion of scope submitted under §602.31(b).

(c) Compliance reports submitted under §602.31(c).

(d) Reviews of agencies that have expanded their scope of recognition by notice, following receipt by of

information of an increase in headcount enrollment described in §602.19(e).

(e) Staff analyses identifying areas of non-compliance based on a review conducted under §602.33.

(Authority: 20 U.S.C. 1099b)

§602.31 Agency submissions applications and reports to be submitted to the 

Department

(a) Applications for recognition or renewal of recognition. An accrediting agency seeking initial or 

continued recognition must submit a written application to the Secretary. Each accrediting agency must 

submit an application for continued recognition at least once every five years, or within a shorter time 

period specified in the final recognition decision. The application, and, for an agency seeking renewal of 

recognition, 24 months prior to the date on which the current recognition expires. The application, to be 

submitted concurrently with information required by 34 CFR 602.32(a) (and 34 CFR 602.32(b), if 

applicable), must consist of—

(1) A statement of the agency's requested scope of recognition; and

(2) Evidence, including documentation(2) Documentation, that the agency complies with the 

criteria for recognition listed in subpart B of this part and effectively applies those criteria; and, including 

a copy of its policies and procedures manual, and its accreditation standards.

(3) Evidence, including documentation(3) Documentation, of how an agency that includes or seeks 

to include distance education or correspondence educationcourses in its scope of recognition applies its 

standards in evaluating programs and institutions it accredits that offer distance education or 

correspondence educationcourses.

(b) Applications for expansions of scope. An agency seeking an expansion of scope by application 

must submit a written application to the Secretary. The application must—

(1) Specify the scope requested; and

(2) Include documentation of experience in accordance with §602.12(b); and
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(3(2) Provide copies of any relevant standards, policies, or procedures developed and applied by 

the agency for its use in accrediting activities conducted within the expansion of scope proposed and 

documentation of the application of these standards, policies, or procedures.

(3) Provide the materials required by § 602.32(i) and, if applicable, § 602.32(l).

(c) Compliance or monitoring reports. If an agency is required to submit a compliance or 

monitoring report, it must do so within 30 days following the end of the period for achieving compliance 

as specified in the decision of the senior Department official or Secretary, as applicable.

(d) Review following an increase in headcount enrollment. If an agency that has notified the 

Secretary in writing of its change in scope to include distance education or correspondence 

educationcourses in accordance with §602.27(a)(54) reports an increase in headcount enrollment in 

accordance with §602.19(e) for an institution it accredits, or if the Department notifies the agency of 

such an increase at one of the agency's accredited institutions, the agency must, within 45 days of 

reporting the increase or receiving notice of the increase from the Department, as applicable, submit a 

report explaining—

(1) How the agency evaluates the capacity of the institutions or programs it accredits to 

accommodate significant growth in enrollment and to maintain educational quality;

(2) The specific circumstances regarding the growth at the institutions or programssprograms that 

triggered the review and the results of any evaluation conducted by the agency; and

(3) Any other information that the agency deems appropriate to demonstrate the effective 

application of the criteria for recognition or that the Department may require.

(e) Consent to sharing of information. By submitting an application for recognition, the agency 

authorizes Department staff throughout the application process and during any period of recognition—

(1) To observe its site visits to one or more of the institutions or programs it accredits or 

preaccredits, on an announced or unannounced basis;

(2) To visit locations where agency activities such as training, review and evaluation panel 

meetings, and decision meetings take place, on an announced or unannounced basis;

(3) To obtain copies of all documents the staff deems necessary to complete its review of the 

agency; and

(4) To gain access to agency records, personnel, and facilities.

(f) Public availability of agency records obtained by the Department. (1) The Secretary's processing 

and decision making on requests for public disclosure of agency materials reviewed under this part are 

governed by the Freedom of Information Act, 5 U.S.C. 552; the Trade Secrets Act, 18 U.S.C. 1905; the 

Privacy Act of 1974, as amended, 5 U.S.C 552a; the Federal Advisory Committee Act, 5 U.S.C. Appdx. 1; 

and all other applicable laws. In recognition proceedings, agencies maymust, before submission to the 

Department —

(i) Redact the names and any other personally identifiable information that would identifyabout 

individual students and any other individuals or institutions that is who are not essential to the 

Department's reviewagents of the agency or of an institution the agency is reviewing;

(ii) Make a good faith effort to designate(ii) Redact the personal addresses, personal telephone 

numbers, personal email addresses, Social Security numbers, and any other personally identifiable 
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information regarding individuals who are acting as agents of the agency or of an institution under 

review;

(iii) Designate all business information within agency submissions that the agency believes would 

be exempt from disclosure under exemption 4 of the Freedom of Information Act (FOIA), 5 U.S.C. 

552(b)(4). A blanket designation of all information contained within a submission, or of a category of 

documents, as meeting this exemption will not be considered a good faith effort and will be 

disregarded; and

(iii) Identify(iv) Ensure documents submitted are only those required for Department review or as 

requested by Department officials.

(2) The agency may, but is not required to, redact the identities of institutions that it believes are 

not essential to the Department’s review of the agency and may identify any other material the agency 

believes would be exempt from public disclosure under FOIA, the factual basis for the request, and any 

legal basis the agency has identified for withholding the document from public disclosure; and.

(3(iv) Ensure documents submitted are only those required for Department review or as requested 

by Department officials.

(2) The Secretary processes FOIA requests in accordance with 34 CFR part 5 and makes all 

documents provided to the Advisory Committee available to the public.

(4) Upon request by Department staff, the agency must disclose to Department staff any specific 

material the agency has redacted that Department staff believes is needed to conduct the staff review. 

Department staff will make any arrangements needed to ensure that the materials are not made public 

if prohibited by law. 

(g) Length of submissions. The Secretary may publish reasonable, uniform limits on the length of 

submissions described in this section.

(Authority: 20 U.S.C. 1099b)

§602.32 Procedures for Department review of applicationsapplying for 

recognition, renewal of recognition, or for change inexpansion of scope, 

compliance reports, and increases in enrollment.

(a) After receipt of an agency's application for initial or continued recognition, or change in 

scope, or an agency's compliance report, or an agency's report submitted under §602.31(d), Department 

staff publishes a notice of the agency's application or report(a) An agency preparing for renewing 

recognition will submit, 24 months prior to the date on which the current recognition expires, and in 

conjunction with the materials required by 602.31(a), a list of all institutions or programs that the 

agency plans to consider for an award of initial or renewed accreditation over the next year or, if none, 

over the succeeding year, as well as any institutions or programs currently subject to compliance report

review or reporting requirements. An agency that does not anticipate a review of any institution or 

program for an initial award of accreditation or renewed accreditation in the 24 months prior to the 

date of recognition expiration may submit a list of institutions or programs it has reviewed for an initial 

award of accreditation or renewal of accreditation at any time since the prior award of recognition or 

leading up to the application for an initial award of recognition.
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(b) An agency seeking initial recognition must follow the policies and procedures outlined in 

section (a), but in addition must also submit—

(1) Letters of support for the agency from at least three accredited institutions or programs, 

three educators, and if appropriate, three employers or practitioners, explaining the role for such an 

agency and the reasons for their support; and

(2) Letters from at least one program or institution that will rely on the agency as its link to a 

Federal program upon recognition of the agency, or intends to seek multiple accreditation which will 

allow it in the future to designate the agency as its Federal link.

(c) Department staff publishes a notice of the agency's submission of an application in 

the FEDERAL REGISTER inviting the public to comment on the agency's compliance with the criteria for 

recognition and establishing a deadline for receipt of public comment.

(bd) The Department staff analyzes the agency's application for initial or renewal of recognition,

compliance report, or report submitted under §602.31(d) to determine whether the agency satisfies the 

criteria for recognition, taking into account all available relevant information concerning the compliance 

of the agency with those criteria and in the agency's effectivenessconsistency in applying the criteria. 

The analysis of an application for recognition and, as appropriate, of a compliance report, or of a report 

required under §602.31(d), includes—

(1) Observations from site visits, on an announced or unannounced basis, to the agency or to a 

location where agency conducts activities such as training, review and evaluation panel meetings, andor

decision meetings take place and to one or more of the institutions or programs it accredits or 

preaccredits; ;

(2(2) Observations from site visits, on an announced or unannounced basis, to one or more of 

the institutions or programs the agency accredits or preaccredits;

(3) A file review at the agency of documents, at which time Department staff may retain copies 

of documents needed for inclusion in the administrative record;

(4) Review of the public comments and other third-party information the Department staff 

receives by the established deadline, and the agency's responses to the third-party comments, as 

appropriate, as well asand any other information Department staff assemblesobtains for purposes of 

evaluating the agency under this part; and

(35) Review of complaints or legal actions involving the agency.

(c) The Department staff analyzes the materials submitted in support of an application for 

expansion of scope to ensure that the agency has the requisite experience, policies that comply with 

subpart B of this part, capacity, and performance record to support; however, although complaints or 

legal actions brought by a third party against an accredited or preaccredited institution or program may 

be considered, they are not determinative of compliance unless the requestcomplaint or legal action 

results in a final judgment on the merits by a court or administrative agency.

(de) (e) The Department may view as a negative factor when considering an application for 

initial, or expansion of scope of recognition as proposed by an agency, among other factors, any 
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evidence that the agency was part of a concerted effort to unnecessarily restrict the qualifications 

necessary for a student to sit for a licensure or certification examination or otherwise be eligible for 

entry into a profession.

(f) Department staff's evaluation of an agency may also include a review of information directly 

related to institutions or programs accredited or preaccredited by the agency relative to their 

compliance with the agency's standards, the effectiveness of the standards, and the agency's application 

of those standards., but must make all materials relied upon in the evaluation available to the agency for 

review and comment. 

(fg) If, at any point in its evaluation of an agency seeking initial recognition, Department staff 

determines that the agency fails to demonstrate compliance with the basic eligibility requirements in 

§§602.10 through 602.1315, the staff—

(1) Returns the agency's application and provides the agency with an explanation of the 

deficiencies that caused staff to take that action; and

(2) RecommendsRequires that the agency withdraw its application and instructs the agency that it 

may reapply when the agency canis able to demonstrate compliance.

(fh) Except with respect to an application that has been returned orand is withdrawn under 

paragraph (ef) of this section, when Department staff completes its evaluation of the agency, the staff—

(1) Prepares a written draft analysis of the agencyagency’s application;

(2) Sends to the agency the draft analysis including any identified areas of potential noncompliance and a proposed recognition recommendation, and all supporting documentation, including 

all third-party comments and complaints, if applicable, and any other materials the Department 

received by the established deadline, to the agency or is including in its review;

(3) Invites the agency to provide a written response to the draft analysis and proposed recognition 

recommendation and third-party comments or other material included in the review, specifying a 

deadline that provides at least 30180 days for the agency's response;

(4) Reviews the response to the draft analysis the agency submits, if any, and prepares the written 

final analysis. The final analysis includes a recognition recommendation to the senior Department 

official, as the Department staff deems appropriate, including, but not limited to, a recommendation to 

approve, deny, limit, suspend, or terminate recognition, require the submission of a compliance report 

and continue recognition pending a final decision on compliance, approve or deny a request for 

expansion of scope, or revise or affirm the scope of the agency; and–

(i) Indicating that the agency is in full compliance, substantial compliance, or non-compliance with 

each of the criteria for recognition; and

(ii) Recommending that the senior Department official approve, renew with compliance reporting 

requirements due in 12 months, renew with compliance reporting requirement with a deadline in excess 

of 12 months based on a finding of good cause and extraordinary circumstances, approve with 

monitoring or other reporting requirements, deny, limit, suspend, or terminate recognition; and

(5) Provides to the agency, no later than seven30 days before the Advisory Committee meeting, 

the final staff analysis and any other available information provided to the Advisory Committee under 

§602.34(c).
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(gi) The agency may request that the Advisory Committee defer acting on an application at that 

Advisory Committee meeting if Department staff fails to provide the agency with the materials 

described, and within the timeframes provided, in paragraphs (fg)(3) and (fg)(5) of this section. If the 

Department staff's failure to send the materials in accordance with the timeframe described in 

paragraph (fg)(3) or (fg)(5) of this section is due to the failure of the agency to submit reports to the 

Department, other information the Secretary requested, or its response to the draft analysis, by the 

deadline established by the Secretary, the agency forfeits its right to request a deferral of its application.

(i) An agency seeking an expansion of scope, either as part of the regular renewal of recognition 

process or during a period of recognition, must submit an application to the Secretary, separately or as 

part of the policies and procedures outlined in section (a), that satisfies the requirements of 34 CFR §§

602.12(a) and 602.31(b) and-

(1) States the reason for the expansion of scope request;

(2) Includes letters from at least three institutions or programs that would seek accreditation 

under one or more of the elements of the expansion of scope; and

(3) Explains how the agency must expand capacity in order to support the expansion of scope, if 

applicable and, if necessary, how it will do so, and how its budget will support that expansion of 

capacity.

(jj) If an agency submits an application for expansion of scope-

(1) Department staff will--

(i) Analyze the application (including in accordance with the criteria in this section and in 

602.12(b)), and 

(ii) Provide a written analysis to the agency, to include any areas of non-compliance with the

criteria for recognition.

(2) (i) if the application was submitted outside of the regular renewal of recognition process, 

(A) Department staff will provide 90 days for the agency to provide supplemental information 

addressing those areas, and provide to the senior Department official a written recommendation

regarding the approval or denial of the application, based on the review of the application and any 

responses provided by the agency to the written analysis;

(B) Within 90 days of receiving a recommendation from Department staff, the senior Department 

official will issue a decision regarding the expansion of scope application, including approval, approval 

with conditions, or denial;

(C) The agency will have 30 days to appeal that decision to the Secretary, following the procedures 

in 602.37;

(j) If the application was submitted as part of the renewal of recognition process, it will be 

considered in conjunction with the renewal application under paragraphs (d)-(h) of this section.
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(3) The Department staff analyzes the materials submitted in support of an application for 

expansion of scope to ensure that the agency has the requisite experience, to the extent possible, and 

policies that comply with subpart B of this part, and capacity and performance record to support the 

request; 

(k) The Department may view as a negative factor when considering an application for initial or 

expansion of scope of recognition as proposed by an agency, among other factors, any evidence that the 

agency was part of a concerted effort to unnecessarily restrict the qualifications necessary for a student 

to sit for a licensure or certification examination or otherwise be eligible for entry into a profession.

(l) Department staff's evaluation of a compliance report includes review of public comments 

solicited by Department staff in the Federal Register received by the established deadline, the agency's 

responses to the third-party comments, as appropriate, other third-party information Department staff 

receives, and additional information described in paragraphs (d) and (e) of this section, as appropriate. 

(m) If an agency is required to be reviewed by the Advisory Committee under § 602.19(e), the 

Department will follow the process outlined in 602.32(a)-(h). 

(Authority: 20 U.S.C. 1099b)

§602.33 Procedures for review of agencies during the period of recognition, 

to include the review of monitoring reports.

(a) Department staff may review the compliance of a recognized agency with the criteria for 

recognition at any time—

(1) AtBased on the requestsubmission of a monitoring report as directed by a decision by the 

Advisory Committee;senior Department official or Secretary; or 

(2) Based on any information that, as determined by Department staff, appears credible and raises 

issues relevant to the criteria for recognition.

(b) The review may include, but need not be limited to, any of the activities described in 

§602.32(bd) and (de).

(c) If, in the course of the review, and after provision to the agency of the documentation 

concerning the inquiry and consultation with the agency, Department staff notes that one or more 

deficiencies may exist in the agency's compliance with the criteria for recognition or in the agency's 

effective application of those criteria, it—

(1) Prepares a written draft analysis of the agency's compliance with the criteria of concern. The 

draft analysis reflects the results of the review, and includes a recommendation regarding what action 

to take with respect to recognition. Possible recommendations include, but are not limited to, a 

recommendation to limit, suspend, or terminate recognition, or require the submission of a compliance 

report and to continue recognition pending a final decision on compliance;
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(2) Sends to the agency the draft analysis including any identified areas of non-compliance, and a 

proposed recognition recommendation, and all supporting documentation to the agency; and

(3) Invites the agency to provide a written response to the draft analysis and proposed recognition 

recommendation, specifying a deadline that provides at least 30 days for the agency's response.within 

90 days. 

(d) If, after review of the agency's response to the draft analysis, Department staff concludes that 

the agency has demonstrated compliance with the criteria for recognition, the staff notifies the agency 

in writing of the results of the review. If the review was requested by the Advisory Committee, staff also 

provides the Advisory Committee with the results of the review.

(e) If, after review of the agency's(4) Reviews the response provided by the agency, including any 

monitoring report submitted, and either –

(i) Concludes the review;

(ii) Continues monitoring of the agency’s areas of deficiencies; or

(iii)(A) Notifies the agency, in the event that the agency’s response to the draft analysis, 

Department staff concludes that the agency hasor monitoring report does not demonstrated 

compliance,satisfy the staff—

(1) Notifies the agency, that the draft analysis will be finalized for presentation to the Advisory 

Committee;

(2B) Publishes a notice in the FEDERAL REGISTER including, if practicable, with an invitation tofor the 

public to comment on the agency's compliance with the criteria in question and establishing a deadline 

for receipt of public comment;

(3C) Provides the agency with a copy of all public comments received and, if practicable, invites a 

written response from the agency;

(4D) Finalizes the staff analysis as necessary to reflect its review of any agency response and any 

public comment received; and

(5E) Provides to the agency, no later than seven30 days before the Advisory Committee meeting, 

the final staff analysis and a recognition recommendation and any other information provided to the 

Advisory Committee under §602.34(c).); and

(f) TheF) Submits the matter for review by the Advisory Committee reviews the matter in 

accordance with §602.34.

(Authority: 20 U.S.C. 1099b)
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Review by the National Advisory Committee on Institutional 

Quality and Integrity

§602.34 Advisory Committee meetings.

(a) Department staff submits a proposed schedule to the Chairperson of the Advisory Committee 

based on anticipated completion of staff analyses.

(b) The Chairperson of the Advisory Committee establishes an agenda for the next meeting and, in 

accordance with the Federal Advisory Committee Act, presents it to the Designated Federal Official for 

approval.

(c) Before the Advisory Committee meeting, Department staff provides the Advisory Committee 

with—

(1) The agency's application for recognition, renewal of recognition, or for expansion of scope, the 

agency's compliance report when Advisory Committee review is required, or the agency's compliance 

report submitted under §602.31(d), and supporting documentation submitted by the agency;

(2) The final Department staff analysis of the agency developed in accordance with §602.32 or 

§602.33, and any supporting documentation;

(3) At the request of the agency, the (3) The agency's response to the draft analysis;

(4) Any written third-party comments the Department received about the agency on or before the 

established deadline;

(5) Any agency response to third-party comments; and

(6) Any other information Department staff relied upon in developing its analysis.

(d) At least 30 days before the Advisory Committee meeting, the Department publishes a notice of 

the meeting in the FEDERAL REGISTER inviting interested parties, including those who submitted thirdparty comments concerning the agency's compliance with the criteria for recognition, to make oral 

presentations before the Advisory Committee.

(e) The Advisory Committee considers the materials provided under paragraph (c) of this section in 

a public meeting and invites Department staff, the agency, and other interested parties to make oral 

presentations during the meeting. A transcript is made of all Advisory Committee meetings.

(f) The written motion adopted by the Advisory Committee regarding each agency's recognition 

will be made available during the Advisory Committee meeting. The Department will provide each 

agency, upon request, with a copy of the motion on recognition at the meeting. Each agency that was 

reviewed will be sent an electronic copy of the motion relative to that agency as soon as practicable 

after the meeting.

(g) After each meeting of the Advisory Committee at which a review of agencies occurs, the 

Advisory Committee forwards to the senior Department official its recommendation with respect to 

each agency, which may include, but is not limited to, a recommendation to approve, deny, limit, 

suspend, or terminate recognition, to grant or deny a request for expansion of scope, to revise or affirm 

the scope of the agency, or to require the agency to submit a compliance report and to continue 

recognition pending a final decision on compliance.,–
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(1)(i) For an agency that is fully compliant, approve initial or renewed recognition;

(ii) Continue recognition with a required compliance report to be submitted to the Department 

within 12 months from the decision of the senior Department official;

(iii) In conjunction with a finding of exceptional circumstances and good cause, continue 

recognition for a specified period in excess of 12 months pending submission of a compliance report; 

(iv) In the case of substantial compliance, grant initial recognition or renewed recognition and 

recommend a monitoring report with a set deadline to be reviewed by Department staff to ensure that 

corrective action is taken and full compliance is achieved or maintained (or for action by staff under 

§602.33 if it is not); or

(v) Deny, limit, suspend, or terminate recognition;

(2) Grant or deny a request for expansion of scope; or

(3) Revise or affirm the scope of the agency.

(Authority: 20 U.S.C. 1099b)

§602.35 Responding to the Advisory Committee's recommendation.

(a) Within ten business days following the Advisory Committee meeting, the agency and 

Department staff may submit written comments to the senior Department official on the Advisory 

Committee's recommendation. The agency must simultaneously submit a copy of its written comments, 

if any, to Department staff. Department staff must simultaneously submit a copy of its written 

comments, if any, to the agency.

(b) Comments must be limited to—

(1) Any Advisory Committee recommendation that the agency or Department staff believes is not 

supported by the record;

(2) Any incomplete Advisory Committee recommendation based on the agency's application; and

(3) The inclusion of any recommendation or draft proposed decision for the senior Department 

official's consideration.

(c)(1) Neither the Department staff nor the agency may submit additional documentary 

evidencedocumentation with its comments unless the Advisory Committee's recognition 

recommendation proposes finding the agency noncompliant with, or ineffective in its application of, a 

criterion or criteria for recognition not identified in the final Department staff analysis provided to the 

Advisory Committee.

(2) Within ten business days of receipt by the Department staff of an agency's comments or new 

evidence, if applicable, or of receipt by the agency of the Department staff's comments, Department 

staff, the agency, or both, as applicable, may submit a response to the senior Department official. 

Simultaneously with submission, the agency must provide a copy of any response to the Department 

staff. Simultaneously with submission, Department staff must provide a copy of any response to the 

agency. No additional comments or new documentation may be submitted after the responses 

described in this paragraph are submitted.
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(Authority: 20 U.S.C. 1099b)

Review and Decision by the Senior Department Official

§602.36 Senior Department official's decision.

(a) The senior Department official makes a decision regarding recognition of an agency based on 

the record compiled under §§602.32, 602.33, 602.34, and 602.35 including, as applicable, the following:

(1) The materials provided to the Advisory Committee under §602.34(c).

(2) The transcript of the Advisory Committee meeting.

(3) The recommendation of the Advisory Committee.

(4) Written comments and responses submitted under §602.35.

(5) New evidencedocumentation submitted in accordance with §602.35(c)(1).

(6) A communication from the Secretary referring an issue to the senior Department official's 

consideration under §602.37(e).

(b) In the event that statutory authority or appropriations for the Advisory Committee ends, or 

there are fewer duly appointed Advisory Committee members than needed to constitute a quorum, and 

under extraordinary circumstances when there are serious concerns about an agency's compliance with 

subpart B of this part that require prompt attention, the senior Department official may make a decision 

in aon an application for renewal of recognition proceeding basedor compliance report on the record 

compiled under §602.32 or §602.33 after providing the agency with an opportunity to respond to the 

final staff analysis. Any decision made by the senior Department official absent a recommendationunder 

this paragraph from the Advisory Committee may be appealed to the Secretary as provided in §602.37.

(c) Following consideration of an agency's recognition under this section, the senior Department 

official issues a recognition decision.

(d) Except with respect to decisions made under paragraph (f) or (g) of this section and matters 

referred to the senior Department official under §602.37(e) or (f), the senior Department official notifies 

the agency in writing of the senior Department official's decision regarding the agency's recognition 

within 90 days of the Advisory Committee meeting or conclusion of the review under paragraph (b) of 

this section.

(e) The senior Department official's decision may include, but is not limited to, approving, for 

recognition; approving with a monitoring report; denying, limiting, suspending, or terminating 

recognition, following the procedures in paragraph (g); granting or denying an application for an 

expansion of scope,; revising or affirming the scope of the agency,; or continuing recognition pending 

submission and review of a compliance report under §§602.32 and 602.34 and review of the report by 

the senior Department official under this section.

(1)(i) The senior Department official approves recognition if the agency has demonstrated 

compliance or substantial compliancecomplies with the criteria for recognition listed in subpart B of this 

part and. The senior Department official may determine that the agency has demonstrated compliance 

or substantial compliance with the criteria for recognition if the agency effectively applies those 
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criteriahas a compliant policy or procedure in place but has not had the opportunity to apply such policy 

or procedure.

(ii) If the senior Department official approves recognition, the recognition decision defines the 

scope of recognition and the recognition period. The recognition period does not exceed five years, 

including any time during which recognition was continued to permit submission and review of a 

compliance report.

(iii) If the scope or period of recognition is less than that requested by the agency, the senior 

Department official explains the reasons for continuing or approving a lesser scope or recognition 

period.

(2)(i) Except as provided in paragraph (e)(3) of this section, if the agency either fails to comply with 

the criteria for recognition listed in subpart B of this part, or to apply those criteria effectively, the senior 

Department official denies, limits, suspends, or terminates recognition.

(ii) If the senior Department official denies, limits, suspends, or terminates recognition, the senior 

Department official specifies the reasons for this decision, including all criteria the agency fails to meet 

and all criteria the agency has failed to apply effectively.

(3)(i) Except as provided in paragraph (e)(3)(ii) of this section, if a recognized agency fails to 

demonstrate compliance with or effective application of a criterion or criteria, butIf the senior 

Department official concludes that the agency will demonstrate or achieve compliance with the criteria 

for recognition and effective application of those criteria within 12 months or lessan agency is noncompliant, the senior Department official may continue the agency's recognition, pending submission by

the agency of a compliance report, that will be subject to review ofin the recognition process, provided 

that-

(A)The senior Department official concludes that the agency will demonstrate compliance with,

and effective application of the criteria for recognition within 12 months from the report under 

§§602.32 and 602.34, and reviewdate of the report by the senior Department official under this section. 

In such a case,official’s decision; or

(B) the senior Department official identifies a deadline more than 12 months from the date of the 

decision by which the senior Department official concludes the agency will demonstrate full compliance 

with, and effective application of the criteria for recognition, and also identifies exceptional 

circumstances and good cause for allowing the agency more than 12 months to achieve compliance and 

effective application.

(ii) In the case of a compliance report ordered under paragraph (e)(3)(i) of this section, the senior 

Department official specifies the criteria the compliance report must address, and athe time period, not 

longer than 12 months, during which the agency must achieve for achieving compliance and effectively 

applyeffective application of the criteria. The compliance report documenting compliance and effective 

application of criteria is due not later than 30 days after the end of the period specified in the senior 

Department official's decision.

(iiiii) If the record includes a compliance report required under paragraph (e)(3)(i) of this section, 

and the senior Department official determines that an agency has not complied with the criteria for 

recognition, or has not effectively applied those criteria, during the time period specified by the senior 

Department official in accordance with paragraph (e)(3)(i) of this section, the senior Department official 

denies, limits, suspends, or terminates recognition, except, in extraordinary circumstances, upon a 

showing of good cause for an extension of time as determined by the senior Department official and 
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detailed in the senior Department official's decision. If the senior Department official determines good 

cause for an extension has been shown, the senior Department official specifies the length of the 

extension and what the agency must do during it to merit a renewal of recognition.

(f) If the senior Department official determines that the agency is substantially compliant, or is fully 

compliant but has concerns about the agency maintaining compliance, the senior Department official 

may approve the agency’s recognition or renewal of recognition and require periodic monitoring reports 

that are to be reviewed and approved by Department staff;

(g) If the senior Department official determines, based on the record, that a decision to deny, limit, 

suspend, or terminate an agency's recognition may be warranted based on a finding that the agency is 

noncompliant with a criterion or criteria of recognitionone or more criteria for recognition, or if the 

agency does not hold institutions or programs accountable for complying with one or more of the 

agency’s standards or criteria for accreditation that were not identified earlier in the proceedings as an 

area of noncompliance, the senior Department official provides—

(1) The agency with an opportunity to submit a written response and documentary 

evidencedocumentation addressing the finding; and

(2) The staff with an opportunity to present its analysis in writing.

(gh) If relevant and material information pertaining to an agency's compliance with recognition 

criteria, but not contained in the record, comes to the senior Department official's attention while a 

decision regarding the agency's recognition is pending before the senior Department official, and if the 

senior Department official concludes the recognition decision should not be made without consideration 

of the information, the senior Department official either—

(1)(i) Does not make a decision regarding recognition of the agency; and

(ii) Refers the matter to Department staff for review and analysis under §602.32 or §602.33, as 

appropriate, and consideration by the Advisory Committee under §602.34; or

(2)(i) Provides the information to the agency and Department staff;

(ii) Permits the agency to respond to the senior Department official and the Department staff in 

writing, and to include additional evidencedocumentation relevant to the issue, and specifies a deadline;

(iii) Provides Department staff with an opportunity to respond in writing to the agency's 

submission under paragraph (g)(2)(ii) of this section, specifying a deadline; and

(iv) Issues a recognition decision based on the record described in paragraph (a) of this section, as 

supplemented by the information provided under this paragraph.

(hi) No agency may submit information to the senior Department official, or ask others to submit 

information on its behalf, for purposes of invoking paragraph (gh) of this section. Before invoking 

paragraph (gh) of this section, the senior Department official will take into account whether the 

information, if submitted by a third party, could have been submitted in accordance with §602.32(a) or 

§602.33(e)(2).

(ij) If the senior Department official does not reach a final decision to approve, deny, limit, 

suspend, or terminate an agency's recognition before the expiration of its recognition period, the senior 

Department official automatically extends the recognition period until a final decision is reached.
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(jk) Unless appealed in accordance with §602.37, the senior Department official's decision is the 

final decision of the Secretary.

(Authority: 20 U.S.C. 1099b)

§602.37 Appealing the senior Department official's decision to the 

Secretary.

(a) The agency may appeal the senior Department official's decision to the Secretary. Such appeal 

stays the decision of the senior Department official until final disposition of the appeal. If an agency 

wishes to appeal, the agency must—

(1) Notify the Secretary and the senior Department official in writing of its intent to appeal the 

decision of the senior Department official, no later than ten10 business days after receipt of the 

decision;

(2) Submit its appeal to the Secretary in writing no later than 30 days after receipt of the decision; 

and

(3) Provide the senior Department official with a copy of the appeal at the same time it submits the 

appeal to the Secretary.

(b) The senior Department official may file a written response to the appeal. To do so, the senior 

Department official must—

(1) Submit a response to the Secretary no later than 30 days after receipt of a copy of the appeal; 

and

(2) Provide the agency with a copy of the senior Department official's response at the same time it 

is submitted to the Secretary.

(c(c) Once the agency’s appeal and the senior Department official’s response, if any, have been 

provided, no additional written comments may be submitted by either party.

(d) Neither the agency nor the senior Department official may include in its submission any new 

evidencedocumentation it did not submit previously in the proceeding.

(de) On appeal, the Secretary makes a recognition decision, as described in §602.36(e). If the 

decision requires a compliance report, the report is due within 30 days after the end of the period 

specified in the Secretary's decision. The Secretary renders a final decision after taking into account the 

senior Department official's decision, the agency's written submissions on appeal, the senior 

Department official's response to the appeal, if any, and the entire record before the senior Department 

official. The Secretary notifies the agency in writing of the Secretary's decision regarding the agency's 

recognition.

(ef) The Secretary may determine, based on the record, that a decision to deny, limit, suspend, or 

terminate an agency's recognition may be warranted based on a finding that the agency is noncompliant 

with, or ineffective in its application with respect to, a criterion or criteria for recognition not identified 

as an area of noncompliance earlier in the proceedings. In that case, the Secretary, without further 

consideration of the appeal, refers the matter to the senior Department official for consideration of the 

issue under §602.36(f). After the senior Department official makes a decision, the agency may, if 

desired, appeal that decision to the Secretary.
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(fg) If relevant and material information pertaining to an agency's compliance with recognition 

criteria, but not contained in the record, comes to the Secretary's attention while a decision regarding 

the agency's recognition is pending before the Secretary, and if the Secretary concludes the recognition 

decision should not be made without consideration of the information, the Secretary either—

(1)(i) Does not make a decision regarding recognition of the agency; and

(ii) Refers the matter to Department staff for review and analysis under §602.32 or §602.33, as 

appropriate, and review by the Advisory Committee under §602.34; and consideration by the senior 

Department official under §602.36; or

(2)(i) Provides the information to the agency and the senior Department official;

(ii) Permits the agency to respond to the Secretary and the senior Department official in writing, 

and to include additional evidencedocumentation relevant to the issue, and specifies a deadline;

(iii) Provides the senior Department official with an opportunity to respond in writing to the 

agency's submission under paragraph (fg)(2)(ii) of this section, specifying a deadline; and

(iv) Issues a recognition decision based on all the materials described in paragraphs (de) and (fg) of 

this section.

(gh) No agency may submit information to the Secretary, or ask others to submit information on its 

behalf, for purposes of invoking paragraph (fg) of this section. Before invoking paragraph (fg) of this 

section, the Secretary will take into account whether the information, if submitted by a third party, 

could have been submitted in accordance with §602.32(a) or §602.33(e)(2).

(hi) If the Secretary does not reach a final decision on appeal to approve, deny, limit, suspend, or 

terminate an agency's recognition before the expiration of its recognition period, the Secretary 

automatically extends the recognition period until a final decision is reached.

(Authority: 20 U.S.C. 1099b)

§602.38 Contesting the Secretary's final decision to deny, limit, suspend, or 

terminate an agency's recognition.

...

(Authority: 20 U.S.C. 1099b)

Subpart D—Department Responsibilities

SOURCE: 64 FR 56617, Oct. 20, 1999. Redesignated at 74 FR 55435, Oct. 27, 2009, unless otherwise 

noted.

§602.50 What information does the Department share with a recognized 

agency about its accredited institutions and programs?

...

(Authority: 20 U.S.C. 1099b)
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PART 603—SECRETARY'S RECOGNITION PROCEDURES FOR 

STATE AGENCIES

§603.24 Criteria for State agencies.

The following are the criteria which the Secretary will utilize in designating a State agency as a reliable 

authority to assess the quality of public postsecondary vocational education in its respective State.

***

(c) Credit-hour policies. The State agency, as part of its review of an institution for initial approval or 

renewal of approval, must conduct an effective review and evaluation of the reliability and accuracy of 

the institution's assignment of credit hours.

(1) The State agency meets this requirement if—

(i) It reviews the institution's—

(A) Policies and procedures for determining the credit hours, as defined in 34 CFR 600.2, that the 

institution awards for courses and programs; and

(B) The application of the institution's policies and procedures to its programs and coursework; and

(ii) Makes a reasonable determination of whether the institution's assignment of credit hours conforms 

to commonly accepted practice in higher education.

(2) In reviewing and evaluating an institution's policies and procedures for determining credit hour 

assignments, a State agency may use sampling or other methods in the evaluation, sufficient to comply 

with paragraph (c)(1)(i)(B) of this section.

(3) The State agency must take such actions that it deems appropriate to address any deficiencies that it 

identifies at an institution as part of its reviews and evaluations under paragraph (c)(1)(i) and (ii) of this 

section, as it does in relation to other deficiencies it may identify, subject to the requirements of this 

part.

(4) If, following the institutional review process under this paragraph (c), the agency finds systemic 

noncompliance with the agency's policies or significant noncompliance regarding one or more programs 

at the institution, the agency must promptly notify the Secretary.

(d) Capacity to foster ethical practices. The State agency must demonstrate its capability and willingness 

to foster ethical practices by showing that it:

(i) Promotes a well-defined set of ethical standards governing institutional or programmatic practices, 

including recruitment, advertising, transcripts, fair and equitable student tuition refunds, and student 

placement services;
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(ii) Maintains appropriate review in relation to the ethical practices of each approved institution or 

program.

(Authority: 20 U.S.C. 1094(c)(4))

[39 FR 30042, Aug. 20, 1974, as amended at 75 FR 66947, Oct. 29, 2010]