(4) The issuing of any accreditation, including 
institutional, programmatic, or specialized accredita-
tion, to any degree-granting institution by any entity 
that is not recognized for accreditation purposes by 
the Secretary of Education, any other appropriate 
Federal agency, or the Council for Higher Education 
Accreditation, or, for foreign accreditors, any entity 
that is not recognized for accreditation purposes by 
the appropriate agency or ministry of jurisdiction in 
the country of the accrediting agency. 
(b) GUIDELINES FOR LEGITIMATE DEGREE-GRANT-
ING INSTITUTION.—For purposes of defining a legitimate 
degree-granting institution in the rule required under sub-
section (a), the Federal Trade Commission shall adopt the 
guidelines developed by the Task Force and submitted in 
its report to Congress as required by section 8(c). 
(c) FINAL RULE.—The Commission shall issue final 
rules under this section not later than 90 days after the 
Task Force submits its final report containing such guide-
lines to Congress pursuant to section 8(c)(3). 
(d) REPORTING REQUIREMENT.— 
(1) FEDERAL TRADE COMMISSION.—In admin-
istering and enforcing the rule required under sub-
section (a), the Federal Trade Commission shall re-
port regularly to the Secretary of Education any in-
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formation regarding entities which the Commission 
knows or suspects to be in violation of such rule. 
(2) SECRETARY
OF
EDUCATION.—The Sec-
retary of Education shall make available to the gen-
eral public, in paper and electronic forms, the infor-
mation reported to the Secretary in accordance with 
paragraph (1). 
SEC. 11. STUDY. 
(a) STUDY.—The Comptroller General shall conduct 
a study to gather the following information: 
(1) A determination of the numbers and types 
of degree-granting institutions that are enrolling stu-
dents or otherwise operating within the United 
States as of the date of the enactment of this Act 
that are not accredited by an accrediting agency or 
association recognized by the Secretary of Education 
under section 496 of the Higher Education Act of 
1965 (20 U.S.C. 1099b) that— 
(A) are legitimate degree-granting institu-
tions; and 
(B) are fraudulent degree-granting institu-
tions. 
(2) An analysis of why legitimate degree-grant-
ing institutions do not obtain accreditation by an ac-
crediting agency or association described in para-
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graph (1), and specifically why some such institu-
tions voluntarily elect not to obtain such accredita-
tion. 
(3) An analysis of any steps taken by the De-
partment of Education to repair the vulnerabilities 
in the Federal Family Education Loan Program re-
vealed by the Office of Special Investigations of the 
Government Accountability Office, as reported to the 
Subcommittee on 21st Century Competitiveness of 
the Committee on Education and the Workforce of 
the House of Representatives on September 23, 
2004. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Comptroller General shall 
submit to the Diploma Mill Task Force established under 
section 8 a report on the study conducted under subsection 
(a) together with recommendations for such legislation 
and administrative action as the Comptroller General de-
termines to be appropriate. 
Æ 
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