190
‘‘(D) a description of the expected out-
comes of the program changes proposed, includ-
ing the estimated reductions in costs both for 
the institution and for students; 
‘‘(E) a description of any collaborative ar-
rangements with other institutions or organiza-
tions to reduce costs; 
‘‘(F) a description of any expected eco-
nomic impact of participation in the program 
within the community in which the institution is 
located; 
‘‘(G) a description of how the institution 
will reduce the costs of instructional materials, 
including textbooks; 
‘‘(H) an assurance that the participating 
institution or system of institutions will offer 
full cooperation with the ongoing evaluations of 
the demonstration program provided for in this 
section; and 
‘‘(I) any other information or assurances 
the Secretary may require. 
‘‘(d) SELECTION.—In selecting institutions to partici-
pate in the demonstration program under this section, the 
Secretary shall take into account—
191
‘‘(1) the number and quality of applications re-
ceived, determined on the basis of the contents re-
quired by subsection (c)(2); 
‘‘(2) the Department’s capacity to oversee and 
monitor each institution’s participation; 
‘‘(3) an institution’s—
‘‘(A) financial responsibility; 
‘‘(B) administrative capability; 
‘‘(C) program or programs being offered 
via distance education; 
‘‘(D) student completion rates; and 
‘‘(E) student loan default rates; and 
‘‘(4) the participation of a diverse group of in-
stitutions with respect to size, mission, and geo-
graphic distribution. 
‘‘(e) NOTIFICATION.—The Secretary shall make 
available to the public and to the authorizing committees 
a list of institutions and systems of institutions selected 
to participate in the demonstration program authorized by 
this section. Such notice shall include a listing of the spe-
cific statutory and regulatory requirements being waived 
for each institution or system of institutions and a descrip-
tion of the distance education courses to be offered. 
‘‘(f) EVALUATIONS AND REPORTS.—
192
‘‘(1) EVALUATION.—The Secretary shall evalu-
ate the demonstration program authorized under 
this section on a biennial basis. Such evaluations 
specifically shall review—
‘‘(A) the number and types of students 
participating in the programs offered, including 
the progress of participating students toward 
recognized certificates or degrees and the extent 
to which participation in such programs in-
creased; 
‘‘(B) issues related to student financial as-
sistance for distance education; 
‘‘(C) effective technologies and alternative 
methodologies for delivering student financial 
assistance; 
‘‘(D) the extent of the cost savings to the 
institution, the student, and the Federal Gov-
ernment by virtue of the waivers provided, and 
an estimate as to future cost savings should the 
demonstration program continue; 
‘‘(E) the extent to which students saved 
money by virtue of completing their postsec-
ondary education sooner;
193
‘‘(F) the extent to which the institution re-
duced its tuition and fees and its costs by virtue 
of participation in the demonstration program; 
‘‘(G) the extent to which any collaborative 
arrangements with other institutions or organi-
zations have reduced the participating institu-
tion’s costs; and 
‘‘(H) the extent to which statutory or reg-
ulatory requirements not waived under the dem-
onstration program present difficulties for stu-
dents or institutions. 
‘‘(2) POLICY
ANALYSIS.—The Secretary shall 
review current policies and identify those policies 
that present impediments to the development and 
use of distance education and other nontraditional 
methods of expanding access to education. 
‘‘(3) REPORTS.—The Secretary shall provide a 
report to the authorizing committees on a biennial 
basis regarding—
‘‘(A) the demonstration program author-
ized under this section; 
‘‘(B) the results of the evaluations con-
ducted under paragraph (1);
194
‘‘(C) the cost savings to the Federal Gov-
ernment by the demonstration program author-
ized by this section; and 
‘‘(D) recommendations for changes to in-
crease the efficiency and effective delivery of fi-
nancial aid. 
‘‘(g) OVERSIGHT.—In conducting the demonstration 
program authorized under this section, the Secretary 
shall, on a continuing basis—
‘‘(1) ensure compliance of institutions or sys-
tems of institutions with the requirements of this 
title (other than the sections and regulations that 
are waived under subsection (b)(2)); 
‘‘(2) provide technical assistance to institutions 
in their application to and participation in the dem-
onstration program; 
‘‘(3) monitor fluctuations in the student popu-
lation enrolled in the participating institutions or 
systems of institutions; 
‘‘(4) monitor changes in financial assistance 
provided at the institution; and 
‘‘(5) consult with appropriate accrediting agen-
cies or associations and appropriate State regulatory 
authorities.
195
‘‘(h) TERMINATION OF AUTHORITY.—The authority 
of the Secretary under this section shall cease to be effec-
tive on October 1, 2011.’’. 
SEC. 490. PROGRAM PARTICIPATION AGREEMENTS. 
(a) REFUND POLICIES.—Section 487(a) (20 U.S.C. 
1094(a)) is amended—
(1) in paragraph (22), by striking ‘‘refund pol-
icy’’ and inserting ‘‘policy on the return of title IV 
funds’’; and 
(2) in paragraph (23)—
(A) by moving subparagraph (C) 2 em 
spaces to the left; and 
(B) by adding after such subparagraph the 
following new subparagraph: 
‘‘(D) An institution shall be considered in com-
pliance with the requirements of subparagraph (A) 
for any student to whom the institution electroni-
cally transmits a message containing a voter reg-
istration form acceptable for use in the State in 
which the institution is located, or an Internet ad-
dress where such a form can be downloaded, pro-
vided such information is in an electronic message 
devoted to voter registration.’’. 
(b) AUDIT REQUIREMENTS.—Section 487(c)(1)(A)(i) 
(20 U.S.C. 1094(c)(1)(A)(i)) is amended by inserting be-