paragraph to the institution for good cause, as 
determined by the Secretary in the case of an in-
stitution of higher education that provides a 2- 
or 4-year program of instruction (or both) for 
which the institution awards an associate or bac-
calaureate degree, respectively; 
‘‘(C) has a student enrollment in which 
more than 25 percent of the students are incar-
cerated, except that the Secretary may waive the 
limitation contained in this subparagraph for an 
institution that provides a 2- or 4-year program 
of instruction (or both) for which the institution 
awards a bachelor’s degree, or an associate’s de-
gree or a postsecondary certificate, respectively; 
or 
‘‘(D) has a student enrollment in which 
more than 50 percent of the students either do 
not meet the requirements of section 484(d)(3) or 
do not have a secondary school diploma or its 
recognized equivalent, and does not provide a 2- 
or 4-year program of instruction (or both) for 
which the institution awards an associate’s de-
gree or a bachelor’s degree, respectively, except 
that the Secretary may waive the limitation con-
tained in this subparagraph if an institution
demonstrates to the satisfaction of the Secretary 
that the institution exceeds such limitation be-
cause the institution serves, through contracts 
with Federal, State, or local government agen-
cies, significant numbers of students who do not 
meet the requirements of section 484(d)(3) or do 
not have a secondary school diploma or its recog-
nized equivalent. 
‘‘(c) LIST OF ACCREDITING AGENCIES.—For purposes 
of this section, the Secretary shall publish a list of nation-
ally recognized accrediting agencies or associations that the 
Secretary determines, pursuant to subpart 2 of part H of 
title IV, to be reliable authority as to the quality of the 
education or training offered. 
‘‘(d) CERTIFICATION.—The Secretary shall certify, for 
the purposes of participation in title IV, an institution’s 
qualification as an institution of higher education in ac-
cordance with the requirements of subpart 3 of part H of 
title IV. 
‘‘(e) LOSS OF ELIGIBILITY.—An institution of higher 
education shall not be considered to meet the definition of 
an institution of higher education in this section for the 
purposes of participation in title IV if such institution is 
removed from eligibility for funds under title IV as a result 
of an action pursuant to part H of title IV.
‘‘SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES. 
‘‘(a) INSTITUTIONS OUTSIDE THE UNITED STATES.— 
‘‘(1) IN GENERAL.—An institution outside the 
United States shall be considered to be an institution 
of higher education only for purposes of part B of 
title IV if the institution is comparable to an institu-
tion of higher education, as defined in section 101, is 
legally authorized by the education ministry (or com-
parable agency) of the country in which the school is 
located, and has been approved by the Secretary for 
purposes of that part. The Secretary shall establish 
criteria by regulation for that approval and that de-
termination of comparability. An institution may not 
be so approved or determined to be comparable unless 
such institution is a public or nonprofit institution, 
except that, subject to paragraph (2)(B), a graduate 
medical school or veterinary school located outside the 
United States may be a for-profit institution. 
‘‘(2) MEDICAL
AND
VETERINARY
SCHOOL
CRI-
TERIA.—In the case of a graduate medical or veteri-
nary school outside the United States, such criteria 
shall include a requirement that a student attending 
such school outside the United States is ineligible for 
loans made, insured, or guaranteed under part B of 
title IV unless—
‘‘(A) in the case of a graduate medical 
school located outside the United States— 
‘‘(i)(I) at least 60 percent of those en-
rolled in, and at least 60 percent of the 
graduates of, the graduate medical school 
outside the United States were not persons 
described in section 484(a)(5) in the year 
preceding the year for which a student is 
seeking a loan under part B of title IV; and 
‘‘(II) at least 60 percent of the individ-
uals who were students or graduates of the 
graduate medical school outside the United 
States or Canada (both nationals of the 
United States and others) taking the exami-
nations administered by the Educational 
Commission for Foreign Medical Graduates 
received a passing score in the year pre-
ceding the year for which a student is seek-
ing a loan under part B of title IV; or 
‘‘(ii) the institution has a clinical 
training program that was approved by a 
State as of January 1, 1992; or 
‘‘(B) in the case of a veterinary school lo-
cated outside the United States that is not a 
public or nonprofit institution, the institution’s
students complete their clinical training at an 
approved veterinary school located in the United 
States. 
‘‘(b) ADVISORY PANEL.— 
‘‘(1) IN GENERAL.—For the purpose of quali-
fying a foreign medical school as an institution of 
higher education only for purposes of part B of title 
IV, the Secretary shall publish qualifying criteria by 
regulation and establish an advisory panel of medical 
experts that shall— 
‘‘(A) evaluate the standards of accreditation 
applied to applicant foreign medical schools; and 
‘‘(B) determine the comparability of those 
standards to standards for accreditation applied 
to United States medical schools. 
‘‘(2) FAILURE TO RELEASE INFORMATION.—The 
failure of an institution outside the United States to 
provide, release, or authorize release to the Secretary 
of such information as may be required by subsection 
(a)(2) shall render such institution ineligible for the 
purpose of part B of title IV.’’. 
(b) RESTRICTIONS
ON
FUNDS
FOR
FOR-PROFIT 
SCHOOLS.—Part B of title I is amended by inserting after 
section 122 (20 U.S.C. 1011k) the following new section:
‘‘SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT 
SCHOOLS. 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this Act authorizing the use of funds by an institu-
tion of higher education that receives funds under this Act, 
none of the funds made available under this Act to a for- 
profit institution of higher education may be used for— 
‘‘(1) construction, maintenance, renovation, re-
pair, or improvement of classrooms, libraries, labora-
tories, or other facilities; 
‘‘(2) establishing, improving, or increasing an 
endowment fund; or 
‘‘(3) establishing or improving an institutional 
development office to strengthen or improve contribu-
tions from alumni and the private sector. 
‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 
funds received by the institution from the grant, loan, or 
work assistance that is awarded under title IV to the stu-
dents attending such institution. 
‘‘(c) INELIGIBILITY FOR CERTAIN PROGRAMS.—Not-
withstanding section 101, a for-profit institution of higher 
education shall not be considered an eligible institution for 
the programs under titles III and V of this Act.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 114(a) (20 U.S.C. 1011c(a)) is 
amended by striking ‘‘(as defined in section 102)’’.
(2) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is 
amended by striking ‘‘section 102’’ and inserting 
‘‘section 101’’. 
(3) Subsection (d) of section 484 (20 U.S.C. 
1091(d)) is amended by striking the designation and 
heading of such subsection and inserting the fol-
lowing: 
‘‘(d) SATISFACTION
OF
SECONDARY
EDUCATION 
STANDARDS.—’’. 
(4) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is 
amended by striking ‘‘102(a)(3)(A), 102(a)(3)(B)’’ 
and inserting ‘‘101(b)(4)(A), 101(b)(4)(B)’’. 
(5) 
Section 
487(c)(1)(A)(iii) 
(20 
U.S.C. 
1094(c)(1)(A)(iii)) is amended by striking ‘‘section 
102(a)(1)(C)’’ and inserting ‘‘section 102’’. 
(6) Section 487(d) (20 U.S.C. 1094(d)) is 
amended by striking ‘‘section 102’’ and inserting 
‘‘section 101’’. 
(7) Subsections (j) and (k) of section 496 (20 
U.S.C. 1099b(j), (k)) are each amended by striking 
‘‘section 102’’ and inserting ‘‘section 101’’. 
(8) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is 
amended by striking ‘‘section 102(a)(1)(C)’’ and in-
serting ‘‘section 102’’.
(9) Section 498(i)(1) (20 U.S.C. 1099c(i)(1)) is 
amended by striking ‘‘section 102’’ and inserting 
‘‘section 101’’. 
(10) Section 498(j)(1) (20 U.S.C. 1099c) is 
amended by striking ‘‘except that such branch shall 
not be required to meet the requirements of sections 
102(b)(1)(E) and 102(c)(1)(C) prior to seeking such 
certification’’ and inserting ‘‘except that such branch 
shall not be required to be in existence for at least 2 
years prior to seeking such certification’’. 
(11) Section 498B(b) (20 U.S.C. 1099c–2(b)) is 
amended by striking ‘‘section 102(a)(1)(C)’’ and in-
serting ‘‘section 102’’. 
(d) EFFECT ON OTHER LAWS.— 
(1) INCLUSION OF FOR-PROFIT INSTITUTIONS IN 
DEFINITION.—The inclusion of proprietary and for- 
profit institutions within the definition of the term 
‘‘institution of higher education’’’ in section 101 of 
the Higher Education Act of 1965 (20 U.S.C. 1001) 
pursuant to the amendment made by subsection (a) of 
this section shall not apply to any other provision of 
law (other than the Higher Education Act of 1965) 
enacted before the date of enactment of this Act that 
references section 101 of the Higher Education Act of 
1965 (or that term as so defined), except as expressly
provided by an amendment to, or other revision of the 
application of, such law enacted after such date of en-
actment. 
(2) INCLUSION OF FOR-PROFIT INSTITUTIONS AS 
TITLE
III
OR
V
ELIGIBLE
INSTITUTION.—Any ref-
erence in any provision of law other than the Higher 
Education Act of 1965 to institutions of higher edu-
cation that are eligible to participate in programs 
under title III or V of such Act (20 U.S.C. 1051 et. 
seq., 1101 et seq.) shall not be treated, as a con-
sequence of the amendment to section 101 of the High-
er Education Act of 1965 (20 U.S.C. 1001) by sub-
section (a) of this section, as including a reference to 
a for-profit or proprietary institution of higher edu-
cation, except as expressly provided by an amendment 
to, or other revision of the application of, such law 
enacted after such date of enactment. 
SEC. 102. NEW BORROWER DEFINITION. 
Paragraph (7) of section 103 (20 U.S.C. 1003) is 
amended to read as follows: 
‘‘(7) NEW BORROWER.—The term ‘new borrower’ 
when used with respect to any date for any loan 
under any provision of— 
‘‘(A) part B or part D of title IV means an 
individual who on that date has no outstanding
balance of principal or interest owing on any 
loan made, insured, or guaranteed under either 
of those parts; and 
‘‘(B) part E of title IV means an individual 
who on that date has no outstanding balance of 
principal or interest owing on any loan made 
under that part.’’. 
SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS. 
Section 112 (20 U.S.C. 1011a) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) PROTECTION OF RIGHTS.— 
‘‘(1) It is the sense of Congress that no student 
attending an institution of higher education on a full- 
or part-time basis should, on the basis of participa-
tion in protected speech or protected association, be 
excluded from participation in, be denied the benefits 
of, or be subjected to discrimination or official sanc-
tion under any education program, activity, or divi-
sion of the institution directly or indirectly receiving 
financial assistance under this Act, whether or not 
such program, activity, or division is sponsored or of-
ficially sanctioned by the institution; and 
‘‘(2) It is the sense of Congress that—
‘‘(A) the diversity of institutions and edu-
cational missions is one of the key strengths of 
American higher education; 
‘‘(B) individual colleges and universities 
have different missions and each institution 
should design its academic program in accord-
ance with its educational goals; 
‘‘(C) within the context of its institutional 
mission, a college should promote intellectual 
pluralism and facilitate the free and open ex-
change of ideas; 
‘‘(D) students should not be intimidated, 
harassed, discouraged from speaking out, dis-
criminated against, or subject to official sanction 
because of their personal political, ideological, or 
religious beliefs; and 
‘‘(E) students should be treated equally and 
fairly, including evaluation and grading, with-
out regard to or consideration of their personal 
political views or ideological beliefs. 
‘‘(3) Nothing in paragraph (2) shall be construed 
to modify, change, or infringe upon any constitu-
tionally protected religious liberty, freedom, expres-
sion, or association.’’; and