I

107TH CONGRESS

1ST SESSION H. R. 1992

To amend the Higher Education Act of 1965 to expand the opportunities

for higher education via telecommunications.

IN THE HOUSE OF REPRESENTATIVES

MAY 24, 2001

Mr. ISAKSON (for himself, Mr. BOEHNER, Mr. MCKEON, Mr. CASTLE, and

Mr. GOODLATTE) introduced the following bill; which was referred to the

Committee on Education and the Workforce

A BILL

To amend the Higher Education Act of 1965 to expand

the opportunities for higher education via telecommunications.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘ Internet Equity and

5 Education Act of 2001’’.

6 SEC. 2. EXCEPTION TO 50 PERCENT CORRESPONDENCE

7 COURSE LIMITATIONS.

8 (a) DEFINITION OF INSTITUTION OF HIGHER EDU9 CATION FOR TITLE IV PURPOSES.—Section 102(a) of the
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1 Higher Education Act of 1965 (20 U.S.C. 1002(a)) is

2 amended by adding at the end the following new para3 graph:

4 ‘‘(7) EXCEPTION TO LIMITATION BASED ON

5 COURSE OF STUDY.—Courses offered via tele6 communications (as defined in section 484(l)(4))

7 shall not be considered to be correspondence courses

8 for purposes of paragraph (3)(A) for any institution

9 that—

10 ‘‘(A) is participating in either or both of

11 the loan programs under part B or D of title

12 IV on the date of enactment of the Internet Eq13 uity and Education Act of 2001; and

14 ‘‘(B) has a cohort default rate (as deter15 mined under section 435(m)) for each of the 3

16 most recent fiscal years for which data are

17 available that is less than 10 percent.’’.

18 (b) DEFINITION OF ELIGIBLE STUDENT.—Section

19 484(l)(1) of the Higher Education Act of 1965 (20 U.S.C.

20 1091(l)(1)) is amended by adding at the end the following

21 new subparagraph:

22 ‘‘(C) EXCEPTION TO 50 PERCENT LIMITA23 TION.—Notwithstanding the 50 percent limita24 tion in subparagraph (A), a student enrolled in

25 a course of instruction described in such sub-
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1 paragraph shall not be considered to be enrolled

2 in correspondence courses if the student is en3 rolled in an institution that—

4 ‘‘(i) is participating in either or both

5 of the loan programs under part B or D of

6 title IV on the date of enactment of the

7 Internet Equity and Education Act of

8 2001; and

9 ‘‘(ii) has a cohort default rate (as de10 termined under section 435(m)) for each of

11 the 3 most recent fiscal years for which

12 data are available that is less than 10 per13 cent.’’.

14 SEC. 3. DEFINITION OF ACADEMIC YEAR.

15 Section 481(a)(2) of the Higher Education Act of

16 1965 (20 U.S.C. 1088(a)(2)) is amended by inserting

17 after the first sentence the following new sentence: ‘‘For

18 the purposes of any program under this title (whether a

19 standard or nonstandard term program), a week of in20 struction is defined as a week in which at least one day

21 of instruction, examination, or preparation for examina22 tion occurs.’’.
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1 SEC. 4. INCENTIVE COMPENSATION.

2 (a) AMENDMENT.—Part G of title IV of the Higher

3 Education Act of 1965 is amended by inserting after sec4 tion 484B (20 U.S.C. 1091b) the following new section:

5 ‘‘SEC. 484C. INCENTIVE COMPENSATION PROHIBITED.

6 ‘‘No institution of higher education participating in

7 a program under this title shall make any payment of a

8 commission, bonus, or other incentive, non-salary pay9 ment, based directly on success in securing enrollments

10 or financial aid, to any person or entity directly engaged

11 in student recruiting or admission activities, or making de12 cisions regarding the award of student financial assist13 ance, except that this section shall not apply to the recruit14 ment of foreign students residing in foreign countries who

15 are not eligible to receive Federal student assistance.’’.

16 (b) CONFORMING AMENDMENT.—Paragraph (20) of

17 section 487(a) (20 U.S.C. 1094(a)(20)) is repealed.

18 (c) TECHNICAL AMENDMENT.—Section 487(c)(1) of

19 the Higher Education Act of 1965 (20 U.S.C. 1094(c)(1))

20 is amended by striking ‘‘paragraph (2)(B)’’ each place it

21 appears in subparagraphs (F) and (H) and inserting

22 ‘‘paragraph (3)(B)’’.

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