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PART 600—INSTITUTIONAL ELIGIBILITY UNDER THE 

HIGHER EDUCATION ACT OF 1965, AS AMENDED

Subpart A—General

SOURCE: 59 FR 22336, Apr. 29, 1994, unless otherwise noted.

§600.1 Scope.

§600.2 Definitions.

The following definitions apply to terms used in this part:

Academic engagement: Active participation by a student in an instructional activity related to the 

student’s course of study that—

(1) Is defined by the institution in accordance with any applicable requirements of its State or 

accrediting agency;

(2) Includes, but is not limited to—

(i) Attending a synchronous class, lecture, recitation, or field or laboratory activity, physically or 

online, where there is an opportunity for interaction between the instructor and students;

(ii) Submitting an academic assignment;

(iii) Taking an assessment or an exam;

(iv) Participating in an interactive tutorial, webinar, or other interactive computer-assisted 

instruction;

(v) Participating in a study group, group project, or an online discussion that is assigned by the 

institution; or

(vi) Interacting with an instructor about academic matters.

(3) Does not include, for example—

(i) Living in institutional housing;

(ii) Participating in the institution’s meal plan;

(iii) Logging into an online class or tutorial without any further participation; or
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(iv) Participating in academic counseling or advisement.

Accredited: The status of public recognition that a nationally recognized accrediting agency grants 

to an institution or educational program that meets the agency's established requirements.

Additional location: A facility that is geographically apart and at which the institution offers at least 

50 percent of a program and may qualify as a branch campus.

Award year: The period of time from July 1 of one year through June 30 of the following year.

Branch Campus: A An additional location of an institution that is geographically apart and 

independent of the main campus of the institution. The Secretary considers a location of an institution 

to be independent of the main campus if the location—

(1) Is permanent in nature;

(2) Offers courses in educational programs leading to a degree, certificate, or other recognized 

educational credential;

(3) Has its own faculty and administrative or supervisory organization; and

(4) Has its own budgetary and hiring authority.

Clock hour: A period of time consisting of—

(1) A 50- to 60-minute class, lecture, or recitation in a 60-minute period;

(2) A 50- to 60-minute faculty-supervised laboratory, shop training, or internship in a 60-minute 

period; or

(3) Sixty minutes of preparation in a correspondence course.; or

(4) In distance education, 50 to 60 minutes in a 60-minute period of attendance in a synchronous 

class, lecture, or recitation where there is opportunity for direct interaction between the instructor and 

students.

(i) A clock hour in a distance education program does not meet the requirements of this definition 

if it does not meet all accrediting agency and State requirements, or exceeds an agency’s restrictions on 

the number of clock hours in a program that may be offered through distance education;

(ii) An institution must be capable of monitoring a student’s attendance in 50 out of 60 minutes for 

each clock hour under this paragraph.

Correspondence course: (1) A course provided 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. Interaction between the 
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instructorinstructors and studentstudents in a correspondence course is limited, is not regular and 

substantive, and is primarily initiated by the student. Correspondence courses are typically self-paced.

(2) If a course is part correspondence and part residential training, the Secretary considers the 

course to be a correspondence course.

(3) A correspondence course is not distance education.

Credit hour: Except as provided in 34 CFR 668.8(k) and (l), a credit hour is an amount of work 

represented in intended learning outcomes and verified by evidence of student achievementwork 

defined by an institution, as approved by the institution’s accrediting agency or state approval agency,

that is an institutionally established equivalency consistent with commonly accepted practice in 

postsecondary education and that reasonably—

(1) Reasonably approximates not less than—

(1(i) One hour of classroom or direct faculty instruction and a minimum of two hours of out of class 

student work each week for approximately fifteen weeks for one semester or trimester hour of credit, 

or ten to twelve weeks for one quarter hour of credit, or the equivalent amount of work over a different 

amountperiod of time; or

(2(ii) At least an equivalent amount of work as required in paragraph (1)(1i) of this definition for 

other academic activities as established by the institution including laboratory work, internships, 

practica, studio work, and other academic work leading to the award of credit hours.; and

(2) Permits an institution, in determining the amount of work associated with a credit hour, to take 

into account a variety of delivery methods, measurements of student work, academic calendars, 

disciplines, and degree levels.

Direct assessment program: A program as described in 34 CFR 668.10.

Distance education means education : Education that uses one or more of the technologies listed 

in paragraphs (1)(i) through (41)(iv) of this definition to deliver instruction to students who are 

separated from the instructor or instructors, and to support regular and substantive interaction 

between the students and the instructor or instructors, either synchronously or asynchronously. 

(1) The technologies that may be used to offer distance education include—

(1(i) The internet;

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

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

(3(iii) Audio conferencing; or
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(4) Video cassettes, DVDs, and CD-ROMs, if the cassettes, DVDs, or CD-ROMs are(iv) Other media

used in a course in conjunction with any of the technologies listed in paragraphs (1)(i) through (31)(iii) of 

this definition.

(2) For purposes of this definition, an instructor is an individual responsible for delivering course 

content and who meets the qualifications for instruction established by the institution’s accrediting 

agency.

(3) For purposes of this definition, substantive interaction is engaging students in teaching, 

learning, and assessment, consistent with the content under discussion, and also includes at least two 

of the following—

(i) Providing direct instruction;

(ii) Assessing or providing feedback on a student’s coursework;

(iii) Providing information or responding to questions about the content of a course or 

competency; 

(iv) Facilitating a group discussion regarding the content of a course or competency; or

(v) Other instructional activities approved by the institution’s or program’s accrediting agency.

(4) An institution ensures regular interaction between a student and an instructor or instructors by, 

prior to the student’s completion of a course or competency—

(i) Providing the opportunity for substantive interactions with the student on a predictable and 

regular basis commensurate with the length of time and the amount of content in the course or 

competency; and

(ii) Monitoring the student’s academic engagement and success and ensuring that an instructor is 

responsible for promptly and proactively engaging in substantive interaction with the student when 

needed, on the basis of such monitoring, or upon request by the student.

Educational program: (1) A legally authorized postsecondary program of organized instruction or 

study that:

(i) Leads to an academic, professional, or vocational degree, or certificate, or other recognized 

educational credential, or is a comprehensive transition and postsecondary program, as described in 34 

CFR part 668, subpart O; and

(ii) May, in lieu of credit hours or clock hours as a measure of student learning, utilize direct 

assessment of student learning, or recognize the direct assessment of student learning by others, if such 

assessment is consistent with the accreditation of the institution or program utilizing the results of the 

assessment and with the provisions of §668.10.
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(2) The Secretary does not consider that an institution provides an educational program if the 

institution does not provide instruction itself (including a course of independent study) but merely gives 

credit for one or more of the following: Instruction provided by other institutions or schools; 

examinations or direct assessments provided by agencies or organizations; or other accomplishments 

such as “life experience.”

Eligible institution: An institution that—

(1) Qualifies as—

(i) An institution of higher education, as defined in §600.4;

(ii) A proprietary institution of higher education, as defined in §600.5; or

(iii) A postsecondary vocational institution, as defined in §600.6; and

(2) Meets all the other applicable provisions of this part.

Federal Family Education Loan (FFEL) Programs: The loan programs (formerly called the 

Guaranteed Student Loan (GSL) programs) authorized by title IV-B of the HEA, including the Federal 

Stafford Loan, Federal PLUS, Federal Supplemental Loans for Students (Federal SLS), and Federal 

Consolidation Loan programs, in which lenders use their own funds to make loans to enable students or 

their parents to pay the costs of the students' attendance at eligible institutions. The Federal Stafford 

Loan, Federal PLUS, Federal SLS, and Federal Consolidation Loan programs are defined in 34 CFR part 

668.

Incarcerated student: A student who is serving a criminal sentence in a Federal, State, or local 

penitentiary, prison, jail, reformatory, work farm, juvenile justice facility, or other similar correctional 

institution. A student is not considered incarcerated if that student is in a half-way house or home 

detention or is sentenced to serve only weekends. For purposes of Pell Grant eligibility under 34 CFR 

668.32(c)(2)(ii), a student who is incarcerated in a juvenile justice facility, or in a local or county facility,

is not considered to be incarcerated in a Federal or State penal institution, regardless of which 

governmental entity operates or has jurisdiction over the facility, including the Federal government or a 

State, but is considered incarcerated for purposes of determining costs of attendance under HEA Section 

472 in determining eligibility for and amount of the Pell Grant.

Juvenile justice facility: A public or private residential facility that is operated primarily for the care 

and rehabilitation of youth who, under State juvenile justice laws—

(1) Are accused of committing a delinquent act; 

(2) Have been adjudicated delinquent; or

(3) Are determined to be in need of supervision.
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Legally authorized: The legal status granted to an institution through a charter, license, or other 

written document issued by the appropriate agency or official of the State in which the institution is 

physically located.

Nationally recognized accrediting agency: An agency or association that the Secretary recognizes as 

a reliable authority to determine the quality of education or training offered by an institution or a 

program offered by an institution. The Secretary recognizes these agencies and associations under the 

provisions of 34 CFR part 602 and publishes a list of the recognized agencies in the FEDERAL REGISTER.

Nonprofit institution: An institution that—

(1)(i) Is owned and operated by one or more nonprofit corporations or associations, no part of the 

net earnings of which benefits any private shareholder or individual;

(ii) Is legally authorized to operate as a nonprofit organization by each State in which it is physically 

located; and

(iii) Is determined by the U.S. Internal Revenue Service to be an organization to which 

contributions are tax-deductible in accordance with section 501(c)(3) of the Internal Revenue Code (26 

U.S.C. 501(c)(3)); or

(2) For a foreign institution—

(i) An institution that is owned and operated only by one or more nonprofit corporations or 

associations; and

(ii)(A) If a recognized tax authority of the institution's home country is recognized by the Secretary 

for purposes of making determinations of an institution's nonprofit status for title IV purposes, is 

determined by that tax authority to be a nonprofit educational institution; or

(B) If no recognized tax authority of the institution's home country is recognized by the Secretary 

for purposes of making determinations of an institution's nonprofit status for title IV purposes, the 

foreign institution demonstrates to the satisfaction of the Secretary that it is a nonprofit educational 

institution.

(3) Is determined by the U.S. Internal Revenue Service to be an organization to which contributions 

are tax-deductible in accordance with section 501(c)(3) of the Internal Revenue Code (26 U.S.C. 

501(c)(3)).

One-academic-year training program: An educational program that is at least one academic year as 

defined under 34 CFR 668.2.

Preaccredited: A Preaccreditation (sometimes referred to as candidacy) means the status of

accreditation and public recognition that a nationally recognized accrediting agency, recognized by the 

Secretary to grant that status, has accorded grants to an unaccredited public or private nonprofit 

institution or program for a limited period of time that signifies the agency has determined that the 
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institution or program is progressing toward full accreditation within a reasonableand is likely to attain 

full accreditation before the expiration of that limited period of time. 

Recognized equivalent of a high school diploma: The following are the equivalent of a high school

diploma—

(1) A General Education Development Certificate (GED);

(2) A State certificate received by a student after the student has passed a State-authorized 

examination that the State recognizes as the equivalent of a high school diploma;

(3) An academic transcript of a student who has successfully completed at least a two-year 

program that is acceptable for full credit toward a bachelor's degree; or

(4) For a person who is seeking enrollment in an educational program that leads to at least an 

associate degree or its equivalent and who has not completed high school but who excelled 

academically in high school, documentation that the student excelled academically in high school and 

has met the formalized, written policies of the institution for admitting such students.

Recognized occupation: An occupation that is—

(1) Identified by a Standard Occupational Classification (SOC) code established by the Office of 

Management and Budget (OMB) or an Occupational Information Network O*Net-SOC code established 

by the Department of Labor, which is available at www.onetonline.org or its successor site; or

(2) Determined by the Secretary in consultation with the Secretary of Labor to be a recognized 

occupation.

Regular student: A person who is enrolled or accepted for enrollment at an institution for the 

purpose of obtaining a degree, certificate, or other recognized educational credential offered by that 

institution.

Religious mission: A published institutional mission that is approved by the governing body of an 

institution of postsecondary education and that includes, refers to, or is predicated upon religious 

tenets, beliefs, or teachings.

Secretary: The Secretary of the Department of Education or an official or employee of the 

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

State: A State of the Union, American Samoa, the Commonwealth of Puerto Rico, the District of 

Columbia, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana 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.

State authorization reciprocity agreement: An agreement between two or more States that 

authorizes an institution located and legally authorized in a State covered by the agreement to provide 

postsecondary education through distance education or correspondence courses to students residing in 
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other States covered by the agreement and does not prohibit any State in the agreement from enforcing 

its own statutes and regulations, whether general or specifically directed at all or a subgroup of 

educational institutions.

Teach-out: A period of time during which a program, institution, or institutional location that 

provides 100 percent of at least one program engages in an orderly closure or when, following the 

closure of an institution or campus, another institution provides an opportunity for the students of the 

closed school to complete their program, regardless of their academic progress at the time of closure.

Eligible borrowers should never be prevented from accessing closed school discharge (34 CFR 685.214) 

instead of a teach-out. Any institution is prohibited from engaging in misrepresentation about the 

nature of the teach-out plans, teach-out agreements, and transfer of credit.

Teach-out agreement: 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 100 percent of at least one program offered, 

ceases to operate or plans to cease operations before all enrolled students have completed their 

program of study.

Teach-out plan: A written plan developed by an institution that provides for the equitable 

treatment of students if an institution, or an institutional location that provides 100 percent of at least 

one program, ceases to operate or plans to cease operations before all enrolled students have 

completed their program of study, and may include, if required by the institution's accrediting agency, a 

teach-out agreement between institutions.

Title IV, HEA program: Any of the student financial assistance programs listed in 34 CFR 668.1(c).

(Authority: 20 U.S.C. 1001, 1002, 1071, et seq., 1078-2, 1088, 1091, 1094, 1099b, 1099c, 1141; 26 U.S.C. 

501(c))

[59 FR 22336, Apr. 29, 1994, as amended at 63 FR 40622, July 29, 1998; 64 FR 58615, Oct. 29, 1999; 71 

FR 45692, Aug. 9, 2006; 74 FR 55425, Oct. 27, 2009; 74 FR 55932, Oct. 29, 2009; 75 FR 66946, Oct. 29, 

2010, 75 FR 67192, Nov. 1, 2010; 79 FR 65006, Oct. 31, 2014]

§600.3 [Reserved]

§600.4 Institution of higher education.

(a) An institution of higher education is a public or private nonprofit educational institution that—

(1) Is in a State, or for purposes of the Federal Pell Grant, Federal Supplemental Educational 

Opportunity Grant, Federal Work-Study, and Federal TRIO programs may also be located in the 

Federated States of Micronesia or the Marshall Islands;

(2) Admits as regular students only persons who—

(i) Have a high school diploma;
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(ii) Have the recognized equivalent of a high school diploma; or

(iii) Are beyond the age of compulsory school attendance in the State in which the institution is 

physically located;

(3) Is legally authorized to provide an educational program beyond secondary education in the 

State in which the institution is physically located in accordance with §600.9;

(4)(i) Provides an educational program—

(A) For which it awards an associate, baccalaureate, graduate, or professional degree;

(B) That is at least a two-academic-year program acceptable for full credit toward a baccalaureate 

degree; or

(C) That is at least a one academic year training program that leads to a certificate, or other 

nondegree recognized credential, and prepares students for gainful employment in a recognized 

occupation; and

(ii) May provide a comprehensive transition and postsecondary program, as described in 34 CFR 

part 668, subpart O; and

(5) Is—

(i) Accredited or preaccredited; or

(ii) Approved by a State agency listed in the FEDERAL REGISTER in accordance with 34 CFR part 603, if 

the institution is a public postsecondary vocational educational institution that seeks to participate only 

in Federal student assistance programs.

(b) An institution is physically located in a State if it has a campus or other instructional site in that 

State.

(c) The Secretary does not recognize the accreditation or preaccreditation of an institution unless 

the institution agrees to submit any dispute involving an adverse action, such as the final denial, 

withdrawal, or termination of accreditation, to initial arbitration before initiating any other legal action.

(Authority: 20 U.S.C. 1091, 1094, 1099b, 1141(a))

[59 FR 22336, Apr. 29, 1994, as amended at 64 FR 58615, Oct. 29, 1999; 74 FR 55932, Oct. 29, 2009; 75 

FR 66946, Oct. 29, 2010]

§600.5 Proprietary institution of higher education.

(a) A proprietary institution of higher education is an educational institution that—

(1) Is not a public or private nonprofit educational institution;
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(2) Is in a State;

(3) Admits as regular students only persons who—

(i) Have a high school diploma;

(ii) Have the recognized equivalent of a high school diploma; or

(iii) Are beyond the age of compulsory school attendance in the State in which the institution is 

physically located;

(4) Is legally authorized to provide an educational program beyond secondary education in the 

State in which the institution is physically located in accordance with §600.9;

(5)(i)(A) Provides an eligible program of training, as defined in 34 CFR 668.8, to prepare students 

for gainful employment in a recognized occupation; or

(B)(1) Has provided a program leading to a baccalaureate degree in liberal arts, as defined in 

paragraph (e) of this section, continuously since January 1, 2009; and

(2) Is accredited by a recognized regional accrediting agency or association, and has continuously 

held such accreditation since October 1, 2007, or earlier; and

(ii) May provide a comprehensive transition and postsecondary program for students with 

intellectual disabilities, as provided in 34 CFR part 668, subpart O;

(6) Is accredited; and

(7) Has been in existence for at least two years.

(b)(1) The Secretary considers an institution to have been in existence for two years only if—

(i) The institution has been legally authorized to provide, and has provided, a continuous 

educational program to prepare students for gainful employment in a recognized occupation during the 

24 months preceding the date of its eligibility application; and

(ii) The educational program that the institution provides on the date of its eligibility application is 

substantially the same in length and subject matter as the program that the institution provided during 

the 24 months preceding the date of its eligibility application.

(2)(i) The Secretary considers an institution to have provided a continuous educational program 

during the 24 months preceding the date of its eligibility application even if the institution did not 

provide that program during normal vacation periods, or periods when the institution temporarily 

closed due to a natural disaster that directly affected the institution or the institution's students.

(ii) The Secretary considers an institution to have satisfied the provisions of paragraph (b)(1)(ii) of 

this section if the institution substantially changed the subject matter of the educational program it 
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provided during that 24-month period because of new technology or the requirements of other Federal 

agencies.

(3) In determining whether an applicant institution satisfies the requirement contained in 

paragraph (b)(1) of this section, the Secretary—

(i) Counts any period during which the applicant institution has been certified as a branch campus; 

and

(ii) Except as provided in paragraph (b)(3)(i) of this section, does not count any period during which 

the applicant institution was a part of another eligible proprietary institution of higher education, 

postsecondary vocational institution, or vocational school.

(c) An institution is physically located in a State if it has a campus or other instructional site in that 

State.

(d) The Secretary does not recognize the accreditation of an institution unless the institution 

agrees to submit any dispute involving an adverse action, such as the final denial, withdrawal, or 

termination of accreditation, to initial arbitration before initiating any other legal action.

(e) For purposes of this section, a “program leading to a baccalaureate degree in liberal arts” is a 

program that the institution's recognized regional accreditation agency or organization determines, is a 

general instructional program in the liberal arts subjects, the humanities disciplines, or the general 

curriculum, falling within one or more of the following generally-accepted instructional categories 

comprising such programs, but including only instruction in regular programs, and excluding 

independently-designed programs, individualized programs, and unstructured studies:

(1) A program that is a structured combination of the arts, biological and physical sciences, social 

sciences, and humanities, emphasizing breadth of study.

(2) An undifferentiated program that includes instruction in the general arts or general science.

(3) A program that focuses on combined studies and research in the humanities subjects as 

distinguished from the social and physical sciences, emphasizing languages, literatures, art, music, 

philosophy, and religion.

(4) Any single instructional program in liberal arts and sciences, general studies, and humanities 

not listed in paragraph (e)(1) through (e)(3) of this section.

(Approved by the Office of Management and Budget under control number 1845-0012)

(Authority: 20 U.S.C. 1088, 1091)

[59 FR 22336, Apr. 29, 1994; 59 FR 32082, June 22, 1994, as amended at 59 FR 47801, Sept. 19, 1994; 59 

FR 61177, Nov. 29, 1994; 61 FR 29901, June 12, 1996; 61 FR 60569, Nov. 29, 1996; 64 FR 58615, Oct. 29, 

1999; 74 FR 55932, Oct. 29, 2009; 76 FR 66946, Oct. 29, 2010]
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§600.6 Postsecondary vocational institution.

***

(d) The Secretary does not recognize the accreditation or preaccreditation of an institution unless 

the institution agrees to submit any dispute involving an adverse action, such as the final denial, 

withdrawal, or termination of accreditation, to initial arbitration before initiating any other legal action.

(Authority: 20 U.S.C. 1088, 1091, 1094(c)(3))

[59 FR 22336, Apr. 29, 1994, as amended at 64 FR 58616, Oct. 29, 1999; 74 FR 55933, Oct. 29, 2009; 75 

FR 66946, Oct. 29, 2010]

§600.7 Conditions of institutional ineligibility.

(a) General rule. For purposes of title IV of the HEA, an educational institution that otherwise 

satisfies the requirements contained in §§600.4, 600.5, or 600.6 nevertheless does not qualify as an 

eligible institution under this part if—

(1) For its latest complete award year—

(i) More than 50 percent of the institution's courses were correspondence courses as calculated 

under paragraph (b) of this section;

(ii) Fifty percent or more of the institution's regular enrolled students were enrolled in 

correspondence courses;

(iii) More than twenty-five percent of the institution's regular enrolled students were incarcerated;

(iv) More than fifty percent of its regular enrolled students had neither a high school diploma nor 

the recognized equivalent of a high school diploma, and the institution does not provide a four-year or 

two-year educational program for which it awards a bachelor's degree or an associate degree, 

respectively;

(2) The institution, or an affiliate of the institution that has the power, by contract or ownership 

interest, to direct or cause the direction of the management of policies of the institution—

(A) Files for relief in bankruptcy, or

(B) Has entered against it an order for relief in bankruptcy; or

(3) The institution, its owner, or its chief executive officer—

(i) Has pled guilty to, has pled nolo contendere to, or is found guilty of, a crime involving the 

acquisition, use, or expenditure of title IV, HEA program funds; or

(ii) Has been judicially determined to have committed fraud involving title IV, HEA program funds.
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(b) Special provisions regarding correspondence courses and students—(1) Calculating the number 

of correspondence courses. For purposes of paragraphs (a)(1) (i) and (ii) of this section—

(i) A correspondence course may be a complete educational program offered by correspondence, 

or one course provided by correspondence in an on-campus (residential) educational program;

(ii) A course must be considered as being offered once during an award year regardless of the 

number of times it is offered during that year; and

(iii) A course that is offered both on campus and by correspondence must be considered two 

courses for the purpose of determining the total number of courses the institution provided during an 

award year.

(2) Exceptions. (2) Calculating the number of correspondence students. For purposes of paragraph 

(a)(1)(ii) of this section, a student is considered “enrolled in correspondence courses” if the student’s

enrollment in correspondence courses constituted more than 50 percent or more of the courses in 

which the student enrolled during an award year.

(3) Exceptions. (i) The provisions contained in paragraphs (a)(1) (i) and (ii) of this section do not 

apply to an institution that qualifies as a “technical institute or vocational school used exclusively or 

principally for the provision of vocational education to individuals who have completed or left high 

school and who are available for study in preparation for entering the labor market” under section 

3(3)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act of 1995.

(ii) The Secretary waives the limitation contained in paragraph (a)(1)(ii) of this section for an 

institution that offers a 2-year associate-degree or a 4-year bachelor's-degree program if the students 

enrolled in the institution's correspondence courses receive no more than 5 percent of the title IV, HEA 

program funds received by students at that institution.

***

(Approved by the Office of Management and Budget under control number 1840-0098)

(Authority: 20 U.S.C. 1088)

[59 FR 22336, Apr. 29, 1994; 59 FR 32082, June 22, 1994, as amended at 59 FR 47801, Sept. 19, 1994; 60 

FR 34430, June 30, 1995; 64 FR 58616, Oct. 29, 1999; 71 FR 45692, Aug. 9, 2006]

§600.8 Treatment of a branch campus.

§600.9 State authorization.

(a)(1) An institution described under §§600.4, 600.5, and 600.6 is legally authorized by a State if 

the State has a process to review and appropriately act on complaints concerning the institution 

including enforcing applicable State laws, and the institution meets the provisions of paragraphs 

(a)(1)(i), (a)(1)(ii), or (b) of this section.
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(i)(A) The institution is established by name as an educational institution by a State through a 

charter, statute, constitutional provision, or other action issued by an appropriate State agency or State 

entity and is authorized to operate educational programs beyond secondary education, including 

programs leading to a degree or certificate.

(B) The institution complies with any applicable State approval or licensure requirements, except 

that the State may exempt the institution from any State approval or licensure requirements based on 

the institution's accreditation by one or more accrediting agencies recognized by the Secretary or based 

upon the institution being in operation for at least 20 years.

(ii) If an institution is established by a State on the basis of an authorization to conduct business in 

the State or to operate as a nonprofit charitable organization, but not established by name as an 

educational institution under paragraph (a)(1)(i) of this section, the institution—

(A) By name, must be approved or licensed by the State to offer programs beyond secondary 

education, including programs leading to a degree or certificate; and

(B) May not be exempt from the State's approval or licensure requirements based on accreditation, 

years in operation, or other comparable exemption.

(2) The Secretary considers an institution to meet the provisions of paragraph (a)(1) of this section 

if the institution is authorized by name to offer educational programs beyond secondary education by—

(i) The Federal Government; or

(ii) As defined in 25 U.S.C. 1802(2), an Indian tribe, provided that the institution is located on tribal 

lands and the tribal government has a process to review and appropriately act on complaints concerning 

an institution and enforces applicable tribal requirements or laws.

(b)(1) An institution is considered to be legally authorized to operate educational programs beyond 

secondary education if it is exempt as a religious institution from State authorization under the State 

constitution or by State law as a religious institution. with a religious mission as defined in 600.2.

(b)(1) Notwithstanding paragraph (a)(1)(i) and (ii) of this section, an institution is considered to be 

legally authorized to operate educational programs beyond secondary education if it is exempt from 

State authorization as a religious institution under the State constitution or by State law.

(2) Purposes of paragraph (b)(1) of this section, a religious institution is an institution that-

(i) Is owned, controlled, operated, and maintained by a religious organization lawfully operating as 

a nonprofit religious corporation; and

(ii) Awards only religious degrees or certificates including, but not limited to, a certificate of 

Talmudic studies, an associate of Biblical studies, a bachelor of religious studies, a master of divinity, or a 

doctor of divinity.

(c)(1)(i) If an institution that meets the requirements under paragraph (a)(1) or (b) of this section 

offers postsecondary education through distance education or correspondence courses to students 
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locatedresiding in a State in which the institution is not physically located or in which the institution is 

otherwise subject to that State's jurisdiction as determined by that State, except as provided in 

paragraph (c)(1)(ii) of this section, the institution must meet any of that State's requirements for it to be 

legally offering postsecondary distance education or correspondence courses in that State. The 

institution must, upon request, document the State's approval to the Secretary; or

(ii) If an institution that meets the requirements under paragraph (a)(1) or (b) of this section offers 

postsecondary education through distance education or correspondence courses in a State that 

participates in a State authorization reciprocity agreement, and the institution is covered by such 

agreement, the institution is considered to meet State requirements for it to be legally offering 

postsecondary distance education or correspondence courses in that State, subject to any limitations in 

that agreement and to any additional requirements of that State. The institution must, upon request, 

document its coverage under such an agreement to the Secretary.

(A) For purposes of this subsection, an institution must make a determination, in accordance with 

the institution’s policies or procedures, regarding the State in which a student is located, which must be 

applied consistently to all students.

(B) The institution must, upon request, provide the Secretary with written documentation of its 

determination of a student’s location, including the basis for such determination; and

(C) An institution must make a determination regarding the State in which a student is located at 

the time of the student’s initial enrollment in an educational program and, if applicable, upon formal 

receipt of information from the student, in accordance with the institution’s procedures, that the 

student’s location has changed to another State.

(d)1 An additional location or branch campus of an institution that meets the requirements 

under paragraph (a)(1) of this section and that is located in a foreign country, i.e., not in a State, must 

comply with §§ 600.8, 600.10, 600.20, and 600.32, and the following requirements:

(1) For any additional location at which 50 percent or more of an educational program (as 

defined in § 600.2) is offered, or will be offered, or at a branch campus—

(i) The additional location or branch campus must be legally authorized by an appropriate 

government authority to operate in the country where the additional location or branch campus is 

physically located, unless the additional location or branch campus is physically located on a U.S. military 

base, facility, or area that the foreign country has granted the U.S. military to use and the institution can 

demonstrate that it is exempt from obtaining such authorization from the foreign country;

(ii) The institution must provide to the Secretary, upon request, documentation of such legal 

authorization to operate in the foreign country, demonstrating that the foreign governmental authority 

 1 Section 600.9(d) was effective July 1, 2018. We propose to retain this language.
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is aware that the additional location or branch campus provides postsecondary education and that the 

government authority does not object to those activities;

(iii) The additional location or branch campus must be approved by the institution's recognized 

accrediting agency in accordance with §§ 602.24(a) and 602.22(a)(2)(viii), as applicable;

(iv) The additional location or branch campus must meet any additional requirements for legal 

authorization in that foreign country as the foreign country may establish; and

(v) The institution must report to meet all reporting requirements of, and comply with any 

limitations imposed by, the State in which the main campus of the institution is located at least annually, 

or more frequently if required by the Stateregarding, the establishment or operation of each foreign 

additional location or branch campus.; and

(vi) The institution must comply with any limitations the State places on the establishment or 

operation of the foreign additional location or branch campus.

(2) An additional location at which less than 50 percent of an educational program (as defined in 

§ 600.2) is offered or will be offered must meet the requirements for legal authorization in that foreign 

country as the foreign country may establish.

(3) In accordance with the requirements of 34 CFR 668.41, the institution must disclose to 

enrolled and prospective students at foreign additional locations and foreign branch campuses the 

information regarding the student complaint process described in 34 CFR 668.43(b), of the State in 

which the main campus of the institution is located.

(4) If the State in which the main campus of the institution is located limits the authorization of 

the institution to exclude the foreign additional location or branch campus, the foreign additional 

location or branch campus is not considered to be legally authorized by the State.

§600.10 Date, extent, duration, and consequence of eligibility2.

(a) Date of eligibility. (1) If the Secretary determines that an applicant institution satisfies all the 

statutory and regulatory eligibility requirements, the Secretary considers the institution to be an eligible 

institution as of the date—

(i) The Secretary signs the institution's program participation agreement described in 34 CFR part 

668, subpart B, for purposes of participating in any title IV, HEA program; and

(ii) The Secretary receives all the information necessary to make that determination for purposes 

other than participating in any title IV, HEA program.

(2) [Reserved]

 2 The Department proposed to amend 34 CFR 600.10(c)(1) and (2) in the Program Integrity: Gainful Employment NPRM. See 83 FR 40167 

(August 14, 2018).
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(b) Extent of eligibility. (1) If the Secretary determines that the entire applicant institution, 

including all its locations and all its educational programs, satisfies the applicable requirements of this 

part, the Secretary extends eligibility to all educational programs and locations identified on the 

institution's application for eligibility.

(2) If the Secretary determines that only certain educational programs or certain locations of an 

applicant institution satisfy the applicable requirements of this part, the Secretary extends eligibility only 

to those educational programs and locations that meet those requirements and identifies the eligible 

educational programs and locations in the eligibility notice sent to the institution under §600.21.

(3) Eligibility does not extend to any location that an institution establishes after it receives its 

eligibility designation if the institution provides at least 50 percent of an educational program at that 

location, unless—

(i) The Secretary approves that location under §600.20(e)(4); or

(ii) The location is licensed and accredited, the institution does not have to apply to the Secretary 

for approval of that location under §600.20(c), and the institution has reported to the Secretary that 

location under §600.21.

(c) Educational programs. (1) An eligible institution that seeks to establish the eligibility of an 

educational program must—

(i) For a gainful employment program under 34 CFR part 668, subpart Q of this chapter, update its 

application under §600.21, and meet any time restrictions that prohibit the institution from establishing 

or reestablishing the eligibility of the program as may be required under 34 CFR 668.414;

(ii) Pursuant to a requirement regarding additional programs included in the institution's program 

participation agreement under 34 CFR 668.14, obtain the Secretary's approval; and

(iii) For a first direct assessment program under 34 CFR 668.10, or for any direct assessment 

program offered at a differentn increased level of offering (credential) than what the Secretary had 

previously approved, and for a comprehensive transition and postsecondary program under 34 CFR 

668.232, obtain the Secretary's approval.

(2) Except as provided under §600.20(c), an eligible institution does not have to obtain the 

Secretary's approval to establish the eligibility of any program that is not described in paragraph (c)(1)(i), 

(ii), or (iii) of this section.

(3) An institution must repay to the Secretary all HEA program funds received by the institution for 

an educational program, and all the title IV, HEA program funds received by or on behalf of students 

who enrolled in that program if the institution—

(i) Fails to comply with the requirements in paragraph (c)(1) of this section; or

(ii) Incorrectly determines that an educational program that is not subject to approval under 

paragraph (c)(1) of this section is an eligible program for title IV, HEA program purposes.
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(d) Duration of eligibility. (1) If an institution participates in the title IV, HEA programs, the 

Secretary's designation of the institution as an eligible institution under the title IV, HEA programs 

expires when the institution's program participation agreement, as described in 34 CFR part 668, 

subpart B, expires.

(2) If an institution participates in an HEA program other than a title IV, HEA program, the 

Secretary's designation of the institution as an eligible institution, for purposes of that non-title IV, HEA 

program, does not expire as long as the institution continues to satisfy the statutory and regulatory 

requirements governing its eligibility.

(e) Consequence of eligibility. (1) If, as a part of its institutional eligibility application, an institution 

indicates that it wishes to participate in a title IV, HEA program and the Secretary determines that the 

institution satisfies the applicable statutory and regulatory requirements governing institutional 

eligibility, the Secretary will determine whether the institution satisfies the standards of administrative 

capability and financial responsibility contained in 34 CFR part 668, subpart B.

(2) If, as part of its institutional eligibility application, an institution indicates that it does not wish 

to participate in any title IV, HEA program and the Secretary determines that the institution satisfies the 

applicable statutory and regulatory requirements governing institutional eligibility, the institution is 

eligible to apply to participate in any HEA program listed by the Secretary in the eligibility notice it 

receives under §600.21. However, the institution is not eligible to participate in those programs, or 

receive funds under those programs, merely by virtue of its designation as an eligible institution under 

this part.

(Approved by the Office of Management and Budget under control number 1845-0098)

(Authority: 20 U.S.C. 1001, 1002, 1088, 1094, and 1141)

[59 FR 22336, Apr. 29, 1994, as amended at 59 FR 47801, Sept. 19, 1994; 65 FR 65671, Nov. 1, 2000; 71 

FR 45692, Aug. 9, 2006; 75 FR 66676, Oct. 29, 2010; 79 FR 65006, Oct. 31, 2014]

§600.11 Special rules regarding institutional accreditation or

preaccreditation.

(a) Change of accrediting agencies. For purposes of §§600.4(a)(5)(i), 600.5(a)(6), and 600.6(a)(5)(i), 

the Secretary does not recognize the accreditation or preaccreditation of an otherwise eligible 

institution if that institution is in the process of changing its accrediting agency, unless the institution

provides the following to the Secretary and receives approval —

(1) All materials related to its prior accreditation or preaccreditation; and

(2) Materials demonstrating reasonable cause for changing its accrediting agency. The Secretary 

will not determines such cause to be reasonable unless if the institution—

(i) Has had its accreditation withdrawn, revoked, or otherwise terminated for cause during the 

preceding 24 months, unless such withdrawal, revocation, or termination has been rescinded by the 

same accrediting agency; or
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(ii) Has been subject to a probation or equivalent, show cause order, or suspension order during 

the preceding 24 months. Has withdrawn from accreditation voluntarily under a show cause or 

suspension order during the preceding 24 months, unless such order has been rescinded by the same 

accrediting agency.

(iii) Notwithstanding paragraphs (i) and (ii), the Secretary may determine the institution’s cause 

for changing its accrediting agency to be reasonable if the agency did not provide the institution its due 

process rights as defined in 602.25, the agency applied its standards and criteria inconsistently, or if the 

adverse action or show cause or suspension order was the result of an agency’s failure to respect an 

institution’s stated mission, including religious mission. 

(b) Multiple accreditation. The Secretary does not recognize the accreditation or preaccreditation 

of an otherwise eligible institution if that institution is accredited or preaccredited as an institution by 

more than one accrediting agency, unless the institution—

(1) Provides to each such accrediting agency and the Secretary the reasons for that multiple 

accreditation or preaccreditation;

(2) Demonstrates to the Secretary reasonable cause for that multiple accreditation or 

preaccreditation; and. The Secretary determines the institution’s cause for multiple accreditation to be 

reasonable unless the institution—

(i) Has had its accreditation withdrawn, revoked, or otherwise terminated for cause during the 

preceding 24 months, unless such withdrawal, revocation, or termination has been rescinded by the 

same accrediting agency; or

(ii) Has been subject to a probation or equivalent, show cause order, or suspension order during 

the preceding 24 months. 

(ii) Has withdrawn from accreditation voluntarily under a show cause or suspension order during 

the preceding 24 months, unless such order has been rescinded by the same accrediting agency;

(iii) Notwithstanding paragraphs (i) and (ii), the Secretary may determine the institution’s cause 

for seeking multiple accreditation or preaccreditation to be reasonable if the institution’s primary 

interest in seeking multiple accreditation is based on that agency’s geographic area, program-area focus,

or mission; and

(3) Designates to the Secretary which agency's accreditation or preaccreditation the institution 

uses to establish its eligibility under this part.

(c) Loss of accreditation or preaccreditation. (1) An institution may not be considered eligible for 24 

months after it has had its accreditation or preaccreditation withdrawn, revoked, or otherwise 

terminated for cause, unless the accrediting agency that took that action rescinds that action.

(2) An institution may not be considered eligible for 24 months after it has withdrawn voluntarily 

from its accreditation or preaccreditation status under a show-cause or suspension order issued by an 

accrediting agency, unless that agency rescinds its order.
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(d) Religious exception. (1) If an otherwise eligible institution loses its accreditation or 

preaccreditation, the Secretary considers the institution to be accredited or preaccredited for purposes 

of complying with the provisions of §§600.4, 600.5, and 600.6 if the Secretary determines that its loss of 

accreditation or preaccreditation—

(i) Is related to the religious mission or affiliation of the institution; and

(ii) Is not related to its failure to satisfy the accrediting agency's standards. (2) If the Secretary 

considers an unaccredited institution to be accredited or preaccredited under the provisions of 

paragraph (d)(1) of this section, the Secretary will consider that unaccredited institution to be accredited 

or preaccredited for a period sufficient to allow the institution to obtain alternative accreditation or 

preaccreditation, except that period may not exceed 18 months.

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

Subpart B—Procedures for Establishing Eligibility

SOURCE: 59 FR 22336, Apr. 29, 1994, unless otherwise noted.

§600.20 Notice and application procedures for establishing, 

reestablishing, maintaining, or expanding institutional eligibility and 

certification.

(a) Initial eligibility application. (1) An institution that wishes to establish its eligibility to participate 

in any HEA program must submit an application to the Secretary for a determination that it qualifies as 

an eligible institution under this part. The Secretary must ensure prompt action is taken by the 

Department on any materially complete application required under this section. 

(2) If the institution also wishes to be certified to participate in the title IV, HEA programs, it must 

indicate that intent on the application, and submit all the documentation indicated on the application to 

enable the Secretary to determine that it satisfies the relevant certification requirements contained in 

34 CFR part 668, subparts B and L.

(3) A freestanding foreign graduate medical school, or a foreign institution that includes a foreign 

graduate medical school, must include in its application to participate—

(i)(A) A list of all medical school educational sites and where they are located, including all sites at 

which its students receive clinical training, except those clinical training sites that are not used regularly, 

but instead are chosen by individual students who take no more than two electives at the location for no 

more than a total of eight weeks; and

(B) The type of clinical training (core, required clinical rotation, not required clinical rotation) 

offered at each site listed on the application in accordance with paragraph (a)(3)(i)(A) of this section; 

and

(ii) Whether the school offers—
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(A) Only post-baccalaureate/equivalent medical programs, as defined in §600.52;

(B) Other types of programs that lead to employment as a doctor of osteopathic medicine or 

doctor of medicine; or

(C) Both; and

(iii) Copies of the formal affiliation agreements with hospitals or clinics providing all or a portion of 

a clinical training program required under §600.55(e)(1).

(b) Reapplication. (1) A currently designated eligible institution that is not participating in the title 

IV, HEA programs must apply to the Secretary for a determination that the institution continues to meet 

the requirements in this part if the Secretary requests the institution to reapply. If the institution 

wisheschooses to be certified to participate in the title IV, HEA programs, it must submit an application 

to the Secretary and must submit all the supporting documentation indicated on the application to 

enable the Secretary to determine that it satisfies the relevant certification requirements contained in 

subparts B and L of 34 CFR part 668. 

(2)(i) A currently designated eligible institution that participates in the title IV, HEA programs must 

apply to the Secretary for a determination that the institution continues to meet the requirements in 

this part and in 34 CFR part 668 if the institution wisheschooses to—

(i(A) Continue to participate in the title IV, HEA programs beyond the scheduled expiration of the 

institution's current eligibility and certification designation;

(ii(B) Reestablish eligibility and certification as a private nonprofit, private for-profit, or public 

institution following a change in ownership that results in a change in control as described in §600.31; or

(iii(C) Reestablish eligibility and certification after the institution changes its status as a proprietary, 

nonprofit, or public institution.

(ii) The Secretary must ensure prompt action is taken by the Department on any materially 

complete application required under 600.20(a)(2)(i). 

(3) A freestanding foreign graduate medical school, or a foreign institution that includes a foreign 

graduate medical school, must include in its reapplication to participate—

(i)(A) A list of all of the foreign graduate medical school's educational sites and where they are 

located, including all sites at which its students receive clinical training, except those clinical training 

sites that are not used regularly, but instead are chosen by individual students who take no more than 

two electives at the location for no more than a total of eight weeks; and

(B) The type of clinical training (core, required clinical rotation, not required clinical rotation) 

offered at each site listed on the application in accordance with paragraph (b)(3)(i)(A) of this section; 

and

(ii) Whether the school offers—
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(A) Only post-baccalaureate/equivalent medical programs, as defined in §600.52;

(B) Other types of programs that lead to employment as a doctor of osteopathic medicine or 

doctor of medicine; or

(C) Both; and

(iii) Copies of the formal affiliation agreements with hospitals or clinics providing all or a portion of 

a clinical training program required under §600.55(e)(1).

(c) Application to expand eligibility. A currently designated eligible institution that wishes to 

expand the scope of its eligibility and certification and disburse title IV, HEA Program funds to students 

enrolled in that expanded scope must apply to the Secretary and wait for approval to—

(1) Add an educational program or a location at which the institution offers or will offer 50 percent 

or more of an educational program if one of the following conditions applies, otherwise it must report to 

the Secretary under §600.21:

(i) The institution participates in the title IV, HEA programs under a provisional certification, as 

provided in 34 CFR 668.13.

(ii) The institution receives title IV, HEA program funds under the reimbursement or cash 

monitoring payment method, as provided in 34 CFR part 668, subpart K.

(iii) The institution acquires the assets of another institution that provided educational programs at 

that location during the preceding year and participated in the title IV, HEA programs during that year.

(iv) The institution would be subject to a loss of eligibility under 34 CFR 668.188 if it adds that 

location.

(v) The Secretary notifies, or has notified, the institution that it must apply for approval of an 

additional educational program or a location under §600.10(c).

(2) Increase its level of program offering (e.g., adding graduate degree programs when it previously 

offered only baccalaureate degree programs);

(3) Add an educational program if the institution is required to apply to the Secretary for approval 

under §600.10(c);

(4) Add a branch campus at a location that is not currently included in the institution's eligibility 

and certification designation;

(5) For a freestanding foreign graduate medical school, or a foreign institution that includes a 

foreign graduate medical school, add a location that offers all or a portion of the foreign graduate 

medical school's core clinical training or required clinical rotations, except for those locations that are 

included in the accreditation of a medical program accredited by the Liaison Committee on Medical 

Education (LCME) or the American Osteopathic Association (AOA); or
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(6) Convert an eligible location to a branch campus.

(d) Notice and application. (1) Notice and application procedures. (i) To satisfy the requirements of 

paragraphs (a), (b), and (c) of this section, an institution must notify the Secretary of its intent to offer an 

additional educational program, or provide an application to expand its eligibility, in a format prescribed 

by the Secretary and provide all the information and documentation requested by the Secretary to make 

a determination of its eligibility and certification.

(ii)(A) An institution that notifies the Secretary of its intent to offer an educational program under 

paragraph (c)(3) of this section must ensure that the Secretary receives the notice described in 

paragraph (d)(2) of this section at least 90 days before the first day of class of the educational program.

(B) An institution that submits a notice in accordance with paragraph (d)(1)(ii)(A) of this section is 

not required to obtain approval to offer the additional educational program unless the Secretary alerts 

the institution at least 30 days before the first day of class that the program must be approved for title 

IV, HEA program purposes. If the Secretary alerts the institution that the additional educational program 

must be approved, the Secretary will treat the notice provided about the additional educational 

program as an application for that program.(C) If an institution does not provide timely notice in 

accordance with paragraph (d)(1)(ii)(A) of this section, the institution must obtain approval of the 

additional educational program from the Secretary for title IV, HEA program purposes.

(DC) If an additional educational program is required to be approved by the Secretary for title IV, 

HEA program purposes under paragraph (d)(1)(ii)(B) or (C) of this section, the Secretary may grant 

approval, or request further information prior to making a determination of whether to approve or deny 

the additional educational program.

(ED) When reviewing an application under paragraph (d)(1)(ii)(B) of this section, the Secretary will 

take into consideration the following:

(1) The institution's demonstrated financial responsibility and administrative capability in operating 

its existing programs.

(2) Whether the additional educational program is one of several new programs that will replace 

similar programs currently provided by the institution, as opposed to supplementing or expanding the 

current programs provided by the institution.

(3) Whether the number of additional educational programs being added is inconsistent with the 

institution's historic program offerings, growth, and operations.

(4) Whether the process and determination by the institution to offer an additional educational 

program that leads to gainful employment in a recognized occupation is sufficient.

(F(E)(1) If the Secretary denies an application from an institution to offer an additional educational 

program, the denial will be based on the factors described in paragraphs (d)(1)(ii)(E)(2), (3), and (4) of 

this section, and the Secretary will explain in the denial how the institution failed to demonstrate that 

the program is likely to lead to gainful employment in a recognized occupation.
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(2) If the Secretary denies the institution's application to add an additional educational program, 

the Secretary will permit the institution to respond to the reasons for the denial and request 

reconsideration of the denial.

(2) Notice format. An institution that notifies the Secretary of its intent to offer an additional 

educational program under paragraph (c)(3) of this section must at a minimum—

(i) Describe in the notice how the institution determined the need for the program and how the 

program was designed to meet local market needs, or for an online program, regional or national 

market needs. This description must contain any wage analysis the institution may have performed, 

including any consideration of Bureau of Labor Statistics data related to the program;

(ii) Describe in the notice how the program was reviewed or approved by, or developed in 

conjunction with, business advisory committees, program integrity boards, public or private oversight or 

regulatory agencies, and businesses that would likely employ graduates of the program;

(iii) Submit documentation that the program has been approved by its accrediting agency or is 

otherwise included in the institution's accreditation by its accrediting agency, or comparable 

documentation if the institution is a public postsecondary vocational institution approved by a 

recognized State agency for the approval of public postsecondary vocational education in lieu of 

accreditation; and

(iv) Provide the date of the first day of class of the new program.

(e) Secretary's response to applications. (1) If the Secretary receives an application under 

paragraph (a) or (b)(1) of this section, the Secretary notifies the institution—

(i) Whether the applicant institution qualifies in whole or in part as an eligible institution under the 

appropriate provisions in §§600.4 through 600.7; and

(ii) Of the locations and educational programs that qualify as the eligible institution if only a 

portion of the applicant qualifies as an eligible institution;

(2) If the Secretary receives an application under paragraphs (a) or (b) of this section and that 

institution applies to participate in the title IV, HEA programs, the Secretary notifies the institution—

(i) Whether the institution is certified to participate in those programs;

(ii) Of the title IV, HEA programs in which it is eligible to participate;

(iii) Of the title IV, HEA programs in which it is eligible to apply for funds;

(iv) Of the effective date of its eligibility to participate in those programs; and

(v) Of the conditions under which it may participate in those programs;
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(3) If the Secretary receives an application under paragraph (b)(2) of this section, the Secretary 

notifies the institution whether it continues to be certified, or whether it reestablished its eligibility and 

certification to participate in the title IV, HEA programs and the scope of such approval.

(4) If the Secretary receives an application under paragraph (c)(1) of this section for an additional 

location, the Secretary notifies the institution whether the location is eligible or ineligible to participate 

in the title IV, HEA programs, and the date of eligibility if the location is determined eligible;

(5) If the Secretary receives an application under paragraph (c)(2) of this section for an increase in 

the level of program offering, or for an additional educational program under paragraph (c)(3) of this 

section, the Secretary notifies the institution whether the program qualifies as an eligible program, and 

if the program qualifies, the date of eligibility; and

(6) If the Secretary receives an application under paragraphs (c)(4) or (c)(5) of this section to have a 

branch campus certified to participate in the title IV, HEA programs as a branch campus, the Secretary 

notifies the institution whether that branch campus is certified to participate and the date that the 

branch campus is eligible to begin participation.

***

Approved by the Office of Management and Budget under control number 1845-0012)

(Authority: 20 U.S.C. 1001, 1002, 1088, 1094, and 1099c)

[65 FR 65671, Nov. 1, 2000, as amended at 75 FR 66677, Oct. 29, 2010; 75 FR 67192, Nov. 1, 2010; 79 FR 

65006, Oct. 31, 2014]

§600.21 Updating application information3.

(a) Reporting requirements. Except as provided in paragraph (b) of this section, an eligible 

institution must report to the Secretary in a manner prescribed by the Secretary no later than 10 days 

after the change occurs, of any change in the following:

(1) Its name, the name of a branch, or the name of a previously reported location.

(2) Its address, the address of a branch, or the address of a previously reported location.

(3) Its establishment of an accredited and licensed additional location at which it offers or will offer 

50 percent or more of an educational program if the institution wants to disburse title IV, HEA program 

funds to students enrolled at that location, under the provisions in paragraph (d) of this section.

(4) Except as provided in 34 CFR 668.10, the way it measures program length (e.g., from clock 

hours to credit hours, or from semester hours to quarter hours).

 3 The Department proposed to revise the paragraph (a)(11) introductory text in section 600.21 to read “For any program that is required to 

provide training that prepares a student for gainful employment in a recognized occupation—“ in the Program Integrity: Gainful Employment 

NPRM. See 83 FR 40167 (August 14, 2018).
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(5) A decrease in the level of program offering (e.g. the institution drops its graduate programs).

(6) A person's ability to affect substantially the actions of the institution if that person did not 

previously have this ability. The Secretary considers a person to have this ability if the person—

(i) Holds alone or together with another member or members of his or her family, at least a 25 

percent “ownership interest” in the institution as defined in §600.31(b);

(ii) Represents or holds, either alone or together with other persons, under a voting trust, power of 

attorney, proxy, or similar agreement at least a 25 percent “ownership interest” in the institution, as 

defined in §600.31(b); or

(iii) Is a general partner, the chief executive officer, or chief financial officer of the institution.

(7) The individual the institution designates under 34 CFR 668.16(b)(1) as its title IV, HEA Program 

administrator.

(8) The closure of a branch campus or additional location that the institution was required to 

report to the Secretary.

(9) The governance of a public institution.

(10) For a freestanding foreign graduate medical school, or a foreign institution that includes a 

foreign graduate medical school, the school adds a location that offers all or a portion of the school's 

clinical rotations that are not required, except for those that are included in the accreditation of a 

medical program accredited by the Liaison Committee on Medical Education (LCME) or the American 

Osteopathic Association (AOA), or that are not used regularly, but instead are chosen by individual 

students who take no more than two electives at the location for no more than a total of eight weeks.

(11) For any gainful employment program under 34 CFR part 668, subpart Q—

(i) Establishing the eligibility or reestablishing the eligibility of the program;

(ii) Discontinuing the program's eligibility under 34 CFR 668.410;

(iii) Ceasing to provide the program for at least 12 consecutive months;

(iv) Losing program eligibility under §600.40;

(v) Changing the program's name, CIP code, as defined in 34 CFR 668.402, or credential level; or

(vi) Updating the certification pursuant to §668.414(b).

(12) Its addition of a second or subsequent direct assessment program.

(13) Its establishment of a written arrangement for an ineligible institution or organization to 

provide more than 25 percent of a program pursuant to §668.5(c).
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***

(Approved by the Office of Management and Budget under control number 1845-0012)

(Authority: 20 U.S.C. 1094, 1099b)

[65 FR 65673, Nov. 1, 2000, as amended at 67 FR 67070, Nov. 1, 2002; 71 FR 45692, Aug. 9, 2006; 75 FR 

67193, Nov. 1, 2010; 79 FR 65006, Oct. 31, 2014]

Subpart C—Maintaining Eligibility

§600.30 [Reserved]

§600.31 Change in ownership resulting in a change in control for 

private nonprofit, private for-profit and public institutions.

(a)(1) Except as provided in paragraph (a)(2) of this section, a private nonprofit, private for-profit, 

or public institution that undergoes a change in ownership that results in a change in control ceases to 

qualify as an eligible institution upon the change in ownership and control. A change in ownership that 

results in a change in control includes any change by which a person who has or thereby acquires an 

ownership interest in the entity that owns the institution or the parent corporation of that entity, 

acquires or loses the ability to control the institution.

(2) If a private nonprofit, private for-profit, or public institution has undergone a change in 

ownership that results in a change in control, the Secretary may, under the provisions of §600.20(g) and 

(h), continue the institution's participation in the title IV, HEA programs on a provisional basis, provided 

that the institution submits, under the provisions of §600.20(g), a materially complete application—

(i) No later than 10 business days after the change occurs; or

(ii) For an institution owned by a publicly-traded corporation, no later than 10 business days after 

the institution knew, or should have known of the change based upon SEC filings, that the change 

occurred.

(3) In order to reestablish eligibility and to resume participation in the title IV, HEA programs, the 

institution must demonstrate to the Secretary that after the change in ownership and control—

(i) The institution satisfies all the applicable requirements contained in §§600.4, 600.5, and 600.6, 

except that if the institution is a proprietary institution of higher education or postsecondary vocational 

institution, it need not have been in existence for two years before seeking eligibility; and

(ii) The institution qualifies to be certified to participate under 34 CFR part 668, subpart B.

(b) Definitions. The following definitions apply to terms used in this section:

Closely-held corporation. Closely-held corporation (including the term close corporation) means—
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(1) A corporation that qualifies under the law of the State of its incorporation or organization as a 

closely-held corporation; or

(2) If the State of incorporation or organization has no definition of closely-held corporation, a 

corporation the stock of which—

(i) Is held by no more than 30 persons; and

(ii) Has not been and is not planned to be publicly offered.

Control. Control (including the terms controlling, controlled by and under common control with) 

means the possession, direct or indirect, of the power to direct or cause the direction of the 

management and policies of a person, whether through the ownership of voting securities, by contract, 

or otherwise.

Ownership or ownership interest. (1) Ownership or ownership interest means a legal or beneficial 

interest in an institution or its corporate parent, or a right to share in the profits derived from the 

operation of an institution or its corporate parent.

(2) Ownership or ownership interest does not include an ownership interest held by—

(i) A mutual fund that is regularly and publicly traded;

(ii) A U.S. institutional investor, as defined in 17 CFR 240.15a-6(b)(7);

(iii) A profit-sharing plan of the institution or its corporate parent, provided that all full-time 

permanent employees of the institution or corporate parent are included in the plan; or

(iv) An Employee Stock Ownership Plan (ESOP).

Parent. The parent or parent corporation of a specified corporationentity is the corporation or 

partnershipentity that controls the specified corporationentity directly or indirectly through one or more 

intermediaries.

Person. Person includes a legal entity or a natural person (corporation or partnership) or an 

individual.

Wholly-owned subsidiary. A wholly-owned subsidiary is one substantially all of whose outstanding 

voting securities are owned by its parent together with the parent's Stock Ownership Plan (ESOP).

(c) Standards for identifying changes of ownership and control—(1) Closely-held corporation. A 

change in ownership and control occurs when—

(i) A person acquires more than 50 percent of the total outstanding voting stock of the corporation;

(ii) A person who holds an ownership interest in the corporation acquires control of more than 50 

percent of the outstanding voting stock of the corporation; or
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(iii) A person who holds or controls 50 percent or more of the total outstanding stock of the 

corporation ceases to hold or control that proportion of the stock of the corporation.

(2) Publicly traded corporations required to be registered with the Securities and Exchange 

Commission (SEC). A change in ownership and control occurs when—

(i) A person acquires such ownership and control of the corporation so that the corporation is 

required to file a Form 8K with the SEC notifying that agency of the change in control; or

(ii) (A) A person who is a controlling shareholder of the corporation ceases to be a controlling 

shareholder. A controlling shareholder is a shareholder who holds or controls through agreement both 

25 percent or more of the total outstanding voting stock of the corporation and more shares of voting 

stock than any other shareholder. A controlling shareholder for this purpose does not include a 

shareholder whose sole stock ownership is held as a U.S. institutional investor, as defined in 17 CFR 

240.15a-6(b)(7), held in mutual funds, held through a profit-sharing plan, or held in an Employee Stock 

Ownership Plan (ESOP).

(B) When a change of ownership occurs as a result of paragraph (c)(2)(ii)(A) of this section, the 

institution may submit its most recent quarterly financial statement as filed with the SEC, along with 

copies of all other SEC filings made after the close of the fiscal year for which a compliance audit has 

been submitted to the Department of Education, instead of the “same day” balance sheet.

(C) If a publicly-traded institution is provisionally certified due to a change in ownership under 

paragraph (c)(2)(ii) of this section, and that institution experiences another change of ownership under 

paragraph (c)(2)(ii) of this section, an approval of the subsequent change in ownership does not extend 

the original expiration date for the provisional certification provided that any current controlling 

shareholder was listed on the change of ownership application for which the original provisional 

approval was granted.

(3) Other corporations.entities. The term “other entities” includes limited liability companies, 

limited liability partnerships, limited partnerships, and similar types of legal entities. A change in 

ownership and control of a corporationan entity that is neither closely-held nor required to be 

registered with the SEC occurs when—

(i) A person who has or acquires an ownership interest acquires both control of at least 25 percent 

of the total outstanding voting stock of the corporation and control of the corporation; or

(ii) A person who holds both ownership or control of at least 25 percent of the total outstanding 

voting stock of the corporation and control of the corporation, ceases to own or control that proportion 

of the stock of the corporation, or to control the corporation; or.

(iii) For a membership corporation, a person who is or becomes a member acquires or loses control 

of 25 percent of the voting interests of the corporation and control of the corporation.

(4) Partnership General partnership or sole proprietorship. A change in ownership and control 

occurs when a person who has or acquires an ownership interest acquires or loses control as described 

in this section.
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(5) Parent corporation. Wholly-owned subsidiary. An institutionentity that is a wholly-owned 

subsidiary changes ownership and control when theits parent corporationentity changes ownership and 

control as described in this section.

(6) Nonprofit institution. A nonprofit institution changes ownership and control when a change 

takes place that is described in paragraph (d) of this section.

(7) Public institution. The Secretary does not consider that a public institution undergoes a change 

in ownership that results in a change of control if there is a change in governance and the institution 

after the change remains a public institution, provided—

(i) The new governing authority is in the same State as included in the institution's program 

participation agreement; and

(ii) The new governing authority has acknowledged the public institution's continued 

responsibilities under its program participation agreement.

(d) Covered transactions. For the purposes of this section, a change in ownership of an institution 

that results in a change of control may include, but is not limited to—

(1) The sale of the institution;

(2) The transfer of the controlling interest of stock of the institution or its parent corporation;

(3) The merger of two or more eligible institutions;

(4) The division of one institution into two or more institutions;

(5) The transfer of the liabilities of an institution to its parent corporation;

(6) A transfer of assets that comprise a substantial portion of the educational business of the 

institution, except where the transfer consists exclusively in the granting of a security interest in those 

assets; or

(7) A change in status as a for-profit, nonprofit, or public institution.

(e) Excluded transactions. A change in ownership and control reported under §600.21 and 

otherwise subject to this section does not include a transfer of ownership and control of all or part of an 

owner's equity or partnership interest in an institution, the institution's parent corporation, or other 

legal entity that has signed the institution's Program Participation Agreement—

(1) From an owner to a “family member” of that owner as defined in §600.21(f); or

(2) Upon the retirement or death of the owner, to a person with an ownership interest in the 

institution who has been involved in management of the institution for at least two years preceding the 

transfer and who has established and retained the ownership interest for at least two years prior to the 

transfer.
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(Approved by the Office of Management and Budget under control number 1845-0012)

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

[59 FR 22336, Apr. 29, 1994, as amended at 59 FR 47801, Sept. 19, 1994; 60 FR 33430, June 30, 1995; 64 

FR 58616, Oct. 29, 1999; 65 FR 65673, Nov. 1, 2000; 67 FR 67070, Nov. 1, 2002]

§600.32 Eligibility of additional locations.

(a) Except as provided in paragraphs (b), (c), and (d) of this section, to qualify as an eligible 

location, an additional location of an eligible institution must satisfy the applicable requirements of this 

section and §§600.4, 600.5, 600.6, 600.8, and 600.10.

(b) To qualify as an eligible location, an additional location is not required to satisfy the two-year 

requirement of §§600.5(a)(7) or 600.6(a)(6), unless—

(1) The location was a facility of another institution that has closed or ceased to provide 

educational programs for a reason other than a normal vacation period or a natural disaster that directly 

affects the institution or the institution's students;

(2) The applicant institution acquired, either directly from the institution that closed or ceased to 

provide educational programs, or through an intermediary, the assets at the location; and

(3) The institution from which the applicant institution acquired the assets of the location—

(i) Owes a liability for a violation of an HEA program requirement; and

(ii) Is not making payments in accordance with an agreement to repay that liability.

(c) Notwithstanding paragraph (b) of this section, an additional location is not required to satisfy 

the two-year requirement of §600.5(a)(7) or §600.6(a)(6) if the applicant institution agrees—and the 

original institution are not related parties and there is no commonality of ownership, control, or 

management between the institutions, as described in 34 CFR 668.188(b) and 34 CFR 668.207(b) and the 

applicant institution agrees—

(1) To be liable for all improperly expended or unspent title IV, HEA program funds received during 

the current academic year and up to one academic year prior by the institution that has closed or 

ceased to provide educational programs;

(2) To be liable for all unpaid refunds owed to students who received title IV, HEA program funds

during the current academic year and up to one academic year prior; and

(3) To abide by the policy of the institution that has closed or ceased to provide educational 

programs regarding refunds of institutional charges to students in effect before the date of the 

acquisition of the assets of the additional location for the students who were enrolled before that date.
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(d)(1) An institution that conducts a teach-out at a site of a closed institution or an institution 

engaged in a formal teach-out plan approved by the institution’s accreditor may apply to have that site 

approved as an additional location if—

(i) The closed institution ceased operations or the closing institution is engaged in an orderly teachout plan and the Secretary has taken an action to limit, suspend, or terminate the institution's 

participation under §600.41 or subpart G of this part, or has taken an emergency action under 34 CFR 

668.83;evaluated and approved that plan; and

(ii) The teach-out plan required under 34 CFR 668.14(b)(31) is approved by the closed or closing 

institution's accrediting agency.

(2)(i) An institution that conducts a teach-out and is approved to add an additional location 

described in paragraph (d)(1) of this section—

(A) Does not have to meet the two-year in existence requirement of §600.5(a)(7) or §600.6(a)(6) 

for the additional location described in paragraph (d)(1) of this section;

(B) Is not responsible for any liabilities of the closed or closing institution as provided under 

paragraph (c)(1) and (c)(2) of this section if the institutions are not related parties and there is no 

commonality of ownership or management between the institutions, as described in 34 CFR 668.188(b) 

and 34 CFR 668.207(b); and

(C) Will not have the default rate of the closed institution included in the calculation of its default 

rate, as would otherwise be required under 34 CFR 668.184 and 34 CFR 668.203, if the institutions are 

not related parties and there is no commonality of ownership or management between the institutions, 

as described in 34 CFR 668.188(b) and 34 CFR 668.207(b).

(ii) As a condition for approving an additional location under paragraph (d)(1) of this section, the 

Secretary may require that payments from the institution conducting the teach-out to the owners or 

related parties of the closed institution, are used to satisfy any liabilities owed by the closed institution.

(e) For purposes of this section, an “additional location” is a location of an institution that was not 

designated as an eligible location in the eligibility notification provided to an institution under §600.21.

(Authority: 20 U.S.C. 1088, 1099c, 1141)

[59 FR 22336, Apr. 29, 1994, as amended at 74 FR 55933, Oct. 29, 2009]
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Subpart D—Loss of Eligibility

§600.40 Loss of eligibility.

§600.41 Termination and emergency action proceedings.

(a) If the Secretary believes that a previously designated eligible institution as a whole, or at one or 

more of its locations, does not satisfy the statutory or regulatory requirements that define that 

institution as an eligible institution, the Secretary may—

(1) Terminate the institution's eligibility designation in whole or as to a particular location—

(i) Under the procedural provisions applicable to terminations contained in 34 CFR 668.81, 668.83, 

668.86, 668.87, 668.88, 668.89, 668.90 (a)(1), (a)(4), and (c) through (f), and 668.91; or

(ii) Under a show-cause hearing, if the institution's loss of eligibility results from—

(A) Its previously qualifying as an eligible vocational school;

(B) Its previously qualifying as an eligible institution, notwithstanding its unaccredited status, under 

the transfer-of-credit alternative to accreditation (as that alternative existed in 20 U.S.C. 1085, 1088, 

and 1141(a)(5)(B) and §600.8 until July 23, 1992);

(C) Its loss of accreditation or preaccreditation;

(D(C) Its loss of legal authority to provide postsecondary education in the State in which it is 

physically located;

(E(D) Its violations of the provisions contained in §600.5(a)(8) or §600.7(a);

(F(E) Its permanently closing; or

(G(F) Its ceasing to provide educational programs for a reason other than a normal vacation period 

or a natural disaster that directly affects the institution, a particular location, or the students of the 

institution or location;

(2) Limit, under the provisions of 34 CFR 668.86, the authority of the institution to disburse, 

deliver, or cause the disbursement or delivery of funds under one or more title IV, HEA programs as 

otherwise provided under 34 CFR 668.26 for the benefit of students enrolled at the ineligible institution 

or location prior to the loss of eligibility of that institution or location; and

(3) Initiate an emergency action under the provisions contained in 34 CFR 668.83 with regard to 

the institution's participation in one or more title IV, HEA programs.

(b) If the Secretary believes that an educational program offered by an institution that was 

previously designated by the Secretary as an eligible institution under the HEA does not satisfy relevant 

statutory or regulatory requirements that define that educational program as part of an eligible 
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institution, the Secretary may in accordance with the procedural provisions described in paragraph (a) of 

this section—

(1) Undertake to terminate that educational program's eligibility under one or more of the title IV, 

HEA programs under the procedural provisions applicable to terminations described in paragraph (a) of 

this section;

(2) Limit the institution's authority to deliver, disburse, or cause the delivery or disbursement of 

funds provided under that title IV, HEA program to students enrolled in that educational program, as 

otherwise provided in 34 CFR 668.26; and

(3) Initiate an emergency action under the provisions contained in 34 CFR 668.83 with regard to 

the institution's participation in one or more title IV, HEA programs with respect to students enrolled in 

that educational program.

(c)(1) An action to terminate and limit the eligibility of an institution as a whole or as to any of its 

locations or educational programs is initiated in accordance with 34 CFR 668.86(b) and becomes final 20 

days after the Secretary notifies the institution of the proposed action, unless the designated 

department official receives by that date a request for a hearing or written material that demonstrates 

that the termination and limitation should not take place.

(2) Once a termination under this section becomes final, the termination is effective with respect 

to any commitment, delivery, or disbursement of funds provided under an applicable title IV, HEA 

program by the institution—

(i) Made to students enrolled in the ineligible institution, location, or educational program; and

(ii) Made on or after the date of the act or omission that caused the loss of eligibility as to the 

institution, location, or educational program.

(3) Once a limitation under this section becomes final, the limitation is effective with regard to any 

commitment, delivery, or disbursement of funds under the applicable title IV, HEA program by the 

institution—

(i) Made after the date on which the limitation became final; and

(ii) Made to students enrolled in the ineligible institution, location, or educational program.

(d) After a termination under this section of the eligibility of an institution as a whole or as to a 

location or educational program becomes final, the institution may not certifyoriginate applications for,

make awards of or commitments for, deliver, or disburse funds under the applicable title IV, HEA 

program, except—

(1) In accordance with the requirements of 34 CFR 668.26(c) with respect to students enrolled in 

the ineligible institution, location, or educational program; and
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(2) After satisfaction of any additional requirements, imposed pursuant to a limitation under 

paragraph (a)(2) of this section, which may include the following:

(i) Completion of the actions required by 34 CFR 668.26(a) and (b).

(ii) Demonstration that the institution has made satisfactory arrangements for the completion of 

actions required by 34 CFR 668.26(a) and (b).

(iii) Securing the confirmation of a third party selected by the Secretary that the proposed 

disbursements or delivery of title IV, HEA program funds meet the requirements of the applicable 

program.

(iv) Using institutional funds to make disbursements permitted under this paragraph and seeking 

reimbursement from the Secretary for those disbursements.

(e) If the Secretary undertakes to terminate the eligibility of an institution, location, or program 

under paragraphs (a) and (b) of this section:

(1) If the basis for the loss of eligibility is the loss of accreditation or preaccreditation, the sole issue 

is whether the institution, location, or program has the requisite accreditation or preaccreditation. The 

presiding official has no authority to consider challenges to the action of the accrediting agency.

(2) If the basis for the loss of eligibility is the loss of legal authorization, the sole issue is whether 

the institution, location, or program has the requisite legal authorization. The presiding official has no 

authority to consider challenges to the action of a State agency in removing the legal authorization.

(3) If the basis for the loss of eligibility of a foreign graduate medical school is one or more annual 

pass rates on the U.S. Medical Licensing Examination below the threshold required in §600.55(f)(1)(ii), 

the sole issue is whether one or more of the foreign medical school's pass rate or rates for the preceding 

calendar year fell below that threshold. For a foreign graduate medical school that opted to have the 

Educational Commission for Foreign Medical Graduates (ECFMG) calculate and provide the pass rates 

directly to the Secretary for the preceding calendar year as permitted under §600.55(d)(2) in lieu of the 

foreign graduate medical school providing pass rate data to the Secretary under §600.55(d)(1)(iii), the 

ECFMG's calculations of the school's rates are conclusive; and the presiding official has no authority to 

consider challenges to the computation of the rate or rates by the ECFMG.

(Authority: 20 U.S.C. 1088, 1091, 1094, 1099a-3, and 1141)

[59 FR 22336, Apr. 29, 1994, as amended at 63 FR 40623, July 29, 1998; 75 FR 67193, Nov. 1, 2010]

§600.51 Purpose and scope.

§600.52 Definitions.

The following definitions apply to this subpart E:
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Associate degree school of nursing: A school that provides primarily or exclusively a two-year 

program of postsecondary education in professional nursing leading to a degree equivalent to an 

associate degree in the United States.

Clinical training: The portion of a graduate medical education program that counts as a clinical 

clerkship for purposes of medical licensure comprising core, required clinical rotation, and not required 

clinical rotation.

Collegiate school of nursing: A school that provides primarily or exclusively a minimum of a twoyear program of postsecondary education in professional nursing leading to a degree equivalent to a 

bachelor of arts, bachelor of science, or bachelor of nursing in the United States, or to a degree 

equivalent to a graduate degree in nursing in the United States, and including advanced training related 

to the program of education provided by the school.

Diploma school of nursing: A school affiliated with a hospital or university, or an independent 

school, which provides primarily or exclusively a two-year program of postsecondary education in 

professional nursing leading to the equivalent of a diploma in the United States or to equivalent indicia 

that the program has been satisfactorily completed.

Foreign graduate medical school: A foreign institution (or, for a foreign institution that is a 

university, a component of that foreign institution) having as its sole mission providing an educational 

program that leads to a degree of medical doctor, doctor of osteopathic medicine, or the equivalent. A 

reference in these regulations to a foreign graduate medical school as “freestanding” pertains solely to 

those schools that qualify by themselves as foreign institutions and not to schools that are components 

of universities that qualify as foreign institutions.

Foreign institution:

(1) For the purposes of students who receive title IV aid, an institution that—

(i) Is not located in a State;

(ii) Except as provided with respect to clinical training offered under §600.55(h)(1), §600.56(b), or 

§600.57(a)(2)—

(A) Has no U.S. location;

(B) Has no written arrangements, within the meaning of §668.5, with institutions or organizations 

located in the United States for students enrolling at the foreign institution to take courses fromfor 

those institutions or organizations to provide a portion of an eligible program, as defined under §668.8,

except for written arrangements for no more than 25 percent of the courses required by the program to 

be provided by eligible institutions located in the United States;

(C) Does not permit students to enrollcomplete an eligible program by enrolling in any 

coursecourses offered by the foreign institution in the United States, including, except that it may 

permit students to complete up to 25 percent of the program by enrolling in coursework, research, 

work, internship, externship, or special studies within the United States, except that independent 
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research done by an individual student in the United States for not more than one academic year is 

permitted, if it is conducted during the dissertation phase of offered by an doctoral program under the 

guidance of faculty, and the research can only be performed in a facilityeligible institution in the United 

States;

(iii) Is legally authorized by the education ministry, council, or equivalent agency of the country in 

which the institution is located to provide an educational program beyond the secondary education 

level; and

(iv) Awards degrees, certificates, or other recognized educational credentials in accordance with 

§600.54(e) that are officially recognized by the country in which the institution is located; or

(2) Notwithstanding paragraph (1)(ii)(C) of this definition, independent research done by an 

individual student in the United States for not more than one academic year is permitted, if it is 

conducted during the dissertation phase of a doctoral program under the guidance of faculty, and the 

research can only be performed in a facility in the United States.

(3) If the educational enterprise enrolls students both within a State and outside a State, and the 

number of students who would be eligible to receive title IV, HEA program funds attending locations 

outside a State is at least twice the number of students enrolled within a State, the locations outside a 

State must apply to participate as one or more foreign institutions and must meet all requirements of 

paragraph (1) of this definition, and the other requirements of this part. For the purposes of this 

paragraph, an educational enterprise consists of two or more locations offering all or part of an 

educational program that are directly or indirectly under common ownership.

Foreign nursing school: A foreign institution (or, for a foreign institution that is a university, a 

component of that foreign institution) that is an associate degree school of nursing, a collegiate school 

of nursing, or a diploma school of nursing. A reference in these regulations to a foreign nursing school as 

“freestanding” pertains solely to those schools that qualify by themselves as foreign institutions and not 

to schools that are components of universities that qualify as foreign institutions.

Foreign veterinary school: A foreign institution (or, for a foreign institution that is a university, a 

component of that foreign institution) having as its sole mission providing an educational program that 

leads to the degree of doctor of veterinary medicine, or the equivalent. A reference in these regulations 

to a foreign veterinary school as “freestanding” pertains solely to those schools that qualify by 

themselves as foreign institutions and not to schools that are components of universities that qualify as 

foreign institutions.

National Committee on Foreign Medical Education and Accreditation (NCFMEA): The operational 

committee of medical experts established by the Secretary to determine whether the medical school 

accrediting standards used in other countries are comparable to those applied to medical schools in the 

United States, for purposes of evaluating the eligibility of accredited foreign graduate medical schools to 

participate in the title IV, HEA programs.

Passing score: The minimum passing score as defined by the Educational Commission for Foreign 

Medical Graduates (ECFMG), or on the National Council Licensure Examination for Registered Nurses 

(NCLEX-RN), as applicable.
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Post-baccalaureate/equivalent medical program: A program offered by a foreign graduate medical 

school that requires, as a condition of admission, that its students have already completed their nonmedical undergraduate studies and that consists solely of courses and training leading to employment 

as a doctor of medicine or doctor of osteopathic medicine.

Secondary school: A school that provides secondary education as determined under the laws of the 

country in which the school is located.

(Authority: 20 U.S.C. 1082, 1088)

[59 FR 22063, Apr. 28, 1994, as amended at 75 FR 67193, Nov. 1, 2010]

§600.53 Requesting an eligibility determination.

§600.54 Criteria for determining whether a foreign institution is 

eligible to apply to participate in the Direct Loan Program.

***

(c)(1) Notwithstanding §668.5, written arrangements between an eligible foreign institution and an 

ineligible entity are limited to those under which –

(i) The ineligible entity is an institution that meets the requirements of the definition of a foreign 

institution under paragraphs (1)(iii) and (iv) of that definition in §600.52; and

(ii) The ineligible foreign institution provides 25 percent or less of the educational program. an 

eligible foreign institution may not enter into a written arrangement under which an ineligible 

institution or organization provides any portion of one or more of the eligible foreign institution’s 

programs.

(2) For the purpose of this paragraph, written arrangements do not include affiliation agreements 

for the provision of clinical training for foreign medical, veterinary, and nursing schools.
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§600.55 Additional criteria for determining whether a foreign 

graduate medical school is eligible to apply to participate in the Direct 

Loan Program.

§600.56 Additional criteria for determining whether a foreign 

veterinary school is eligible to apply to participate in the Direct Loan 

Program.

§600.57 Additional criteria for determining whether a foreign nursing 

school is eligible to apply to participate in the Direct Loan Program.

§600.58 Duration of eligibility determination.