I 
113TH CONGRESS 
2D SESSION 
H. R. 4612 
To amend the eligibility requirements for funding under title IV of the 
Higher Education Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 8, 2014 
Mr. DESANTIS (for himself, Mr. SALMON, Mr. POSEY, and Mr. BENTIVOLIO) 
introduced the following bill; which was referred to the Committee on 
Education and the Workforce 
A BILL 
To amend the eligibility requirements for funding under title 
IV of the Higher Education Act of 1965. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Higher Education Re-
form and Opportunity Act of 2014’’. 
SEC. 2. AMENDMENTS TO THE HIGHER EDUCATION ACT. 
(a) DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.—Section 102(a) of the Higher Education Act of 
1965 (20 U.S.C. 1002(a)) is amended— 
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(1) by redesignating paragraphs (5) and (6) as 
paragraphs (6) and (7), respectively; 
(2) in paragraph (1), in the matter preceding 
subparagraph (A), by striking ‘‘Subject to para-
graphs (2) through (4)’’ and inserting ‘‘Subject to 
paragraphs (2) through (5)’’; 
(3) in paragraph (1)— 
(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; and 
(B) by inserting after subparagraph (A) 
the following: 
‘‘(B) if accredited by an authorized accred-
itation authority in a State that has an alter-
native accreditation agreement with the Sec-
retary, as described in paragraph (5)— 
‘‘(i) an institution that provides post-
secondary education; 
‘‘(ii) a postsecondary apprenticeship 
program; or 
‘‘(iii) 
a 
postsecondary 
education 
course or program provided by an institu-
tion of postsecondary education, a non-
profit organization, or a for-profit organi-
zation or business;’’; and 
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(4) by inserting after paragraph (4), the fol-
lowing: 
‘‘(5) STATE ALTERNATIVE ACCREDITATION.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, a State may establish an 
alternative accreditation system for the purpose 
of establishing institutions that provide postsec-
ondary education and postsecondary education 
courses or programs as eligible for funding 
under title IV if the State enters into an agree-
ment with the Secretary for the establishment 
of the alternative accreditation system. Such in-
stitutions, courses, or programs may include— 
‘‘(i) institutions that provide postsec-
ondary education; 
‘‘(ii) 
postsecondary 
apprenticeship 
programs; 
‘‘(iii) any other postsecondary edu-
cation course or program offered at an in-
stitution of postsecondary education, a 
nonprofit organization, or a for-profit orga-
nization or business; and 
‘‘(iv) any of the entities described in 
clauses (i) through (iii) that do not award 
a postsecondary certification, credential, or 
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degree, provided that such entity provides 
credit that will apply toward a postsec-
ondary certification, credential, or degree. 
‘‘(B) 
ALTERNATIVE
ACCREDITATION 
AGREEMENT.—The 
alternative 
accreditation 
agreement described in subparagraph (A) shall 
include the following: 
‘‘(i) The designation of one or more 
authorized accrediting entities within the 
State, such as the State Department of 
Education, another State agency, an indus-
try-specific accrediting agency, or another 
entity, and an explanation of the process 
through which the State will select such 
authorized accrediting entities. 
‘‘(ii) The standards or criteria that an 
institution that provides postsecondary 
education and a postsecondary education 
course or program must meet in order to— 
‘‘(I) receive an initial accredita-
tion as part of the alternative accredi-
tation system; and 
‘‘(II) maintain such accredita-
tion. 
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‘‘(iii) A description of the appeals 
process through which an institution that 
provides postsecondary education and a 
postsecondary education course or program 
may appeal to an authorized accrediting 
entity if such institution, course, or pro-
gram is denied accreditation under the 
State alternative accreditation system. 
‘‘(iv) Each authorized accrediting en-
tity’s policy regarding the transfer of cred-
its between institutions that provide post-
secondary education and postsecondary 
education courses or programs within the 
State that are accredited as part of the al-
ternative accreditation system. 
‘‘(v) The Secretary’s reporting re-
quirements for the State regarding the 
State alternative accreditation system, in-
cluding— 
‘‘(I) the contents of reports that 
must be submitted to the Secretary, 
which may include information such 
as— 
‘‘(aa) in the case of a post-
secondary education course or 
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program 
that 
is 
accredited 
through the State alternative ac-
creditation system— 
‘‘(AA) the number and 
percentage of students who 
successfully complete each 
such 
postsecondary 
edu-
cation course or program; 
and 
‘‘(BB) the number and 
percentage of students who 
successfully obtain a post-
secondary certification, cre-
dential, 
or 
degree 
using 
credit obtained from each 
such 
postsecondary 
edu-
cation course or program; 
and 
‘‘(bb) in the case of an insti-
tution 
that 
provides 
postsec-
ondary education that is accred-
ited through the State alternative 
accreditation system— 
‘‘(AA) the number and 
percentage of students who 
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nate direct loans under part D of title 
IV. 
‘‘(xi) A description of how the State 
will administer title IV funds for institu-
tions that provide postsecondary education, 
postsecondary 
apprenticeship 
programs, 
and postsecondary education courses or 
programs provided by an institution of 
postsecondary education, a nonprofit orga-
nization, or a for-profit organization or 
business that are accredited through the 
alternative accreditation system. 
‘‘(C) ADMINISTRATIVE
COSTS
FOR
PELL 
GRANT STUDENTS.— 
‘‘(i) PELL GRANTS ADMINISTERED BY 
ENTITIES.—In the case of an institution 
that provides postsecondary education, a 
postsecondary apprenticeship program, or 
an entity that provides a postsecondary 
education course or program that is ac-
credited through the alternative accredita-
tion system and that will administer the 
Federal Pell Grant, Federal Perkins Loan, 
Federal Work-Study, and Federal Supple-
mental Educational Opportunity Grants in 
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accordance with the agreement described 
in subparagraph (B)(xi), the Secretary 
shall, in lieu of carrying out section 690.10 
of title 34, Code of Federal Regulations, 
and subject to available appropriations, 
pay $5.00 to the institution, apprenticeship 
program, or entity, as the case may be, for 
each student who receives a Federal Pell 
Grant at that institution, apprenticeship 
program, or entity for an award year. 
‘‘(ii) PELL GRANTS ADMINISTERED BY 
STATES.—In the case of an institution that 
provides postsecondary education, a post-
secondary apprenticeship program, or an 
entity that provides a postsecondary edu-
cation course or program that is accredited 
through the alternative accreditation sys-
tem and will not administer the Federal 
Pell Grant, Federal Perkins Loan, Federal 
Work-Study, and Federal Supplemental 
Educational Opportunity Grants, but will 
have such programs administered by the 
State in accordance with the agreement de-
scribed in subparagraph (B)(xi), the Sec-
retary shall, in lieu of carrying out section 
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690.10 of title 34, Code of Federal Regula-
tions, and subject to available appropria-
tions, pay $5.00 to the State for each stu-
dent who receives a Federal Pell Grant at 
that institution, apprenticeship program, 
or entity, as the case may be, for an award 
year. 
‘‘(iii) USE OF FUNDS.—All funds that 
an institution, apprenticeship program, en-
tity, or the State receives under this sub-
paragraph shall be used solely to pay the 
cost of— 
‘‘(I) administering the Federal 
Pell Grant, Federal Perkins Loan, 
Federal Work-Study, and Federal 
Supplemental 
Educational 
Oppor-
tunity Grants; and 
‘‘(II) carrying out the reporting 
requirements described under sub-
paragraph (B)(v). 
‘‘(iv) FINANCIAL
AID
SERVICES.—If 
an institution, apprenticeship program, or 
entity described in this subparagraph en-
rolls a significant number of students who 
are attending less-than-full-time or are 
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independent students, such institution, ap-
prenticeship program, entity, or the State, 
as the case may be, shall use a reasonable 
proportion of the funds provided under this 
subparagraph to make financial aid serv-
ices available during times and in places 
that will most effectively accommodate the 
needs of those students.’’. 
(b) TITLE IV ELIGIBILITY REQUIREMENTS.—Part G 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 
493E. 
STATE 
ACCREDITED 
INSTITUTIONS, 
PRO-
GRAMS, OR COURSES. 
‘‘Notwithstanding any other provision of law, an in-
stitution, program, or course that is eligible for funds 
under this title in accordance with section 102(a)(1)(B) 
and meets the requirements of section 102(a)(5) shall not 
be required to meet any other requirements of this title. 
For purposes of this title, such an institution, program, 
or course shall be deemed to be an eligible institution that 
meets the requirements of section 487.’’. 
Æ 
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