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(E) of paragraph (1), as applied to the fraternity, 
sorority, or recognized student group, respectively, 
for each building and property owned or controlled 
by the fraternity, sorority, or group, respectively. 
‘‘(3) CURRENT INFORMATION TO CAMPUS COM-
MUNITY.—Each institution participating in any pro-
gram under this title shall establish and maintain a 
log, written in a form that can be easily understood, 
recording all on-campus fires, including the nature, 
date, time, and general location of each fire and all 
false fire alarms. All entries that are required pursu-
ant to this paragraph shall, except where disclosure 
of such information is prohibited by law, be open to 
public inspection, and each such institution shall 
make annual reports to the campus community on 
such fires and false fire alarms in a manner that will 
aid the prevention of similar occurrences. 
‘‘(4) REPORTS TO THE SECRETARY.—On an an-
nual basis, each institution participating in any pro-
gram under this title shall submit to the Secretary 
a copy of the statistics required to be made available 
under paragraph (1)(B). The Secretary shall— 
‘‘(A) review such statistics; 
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‘‘(B) make copies of the statistics sub-
mitted to the Secretary available to the public; 
and 
‘‘(C) in coordination with nationally recog-
nized fire organizations and representatives of 
institutions of higher education, identify exem-
plary fire safety policies, procedures, and prac-
tices and disseminate information concerning 
those policies, procedures, and practices that 
have proven effective in the reduction of cam-
pus fires. 
‘‘(5) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to authorize the 
Secretary to require particular policies, procedures, 
or practices by institutions of higher education with 
respect to fire safety. 
‘‘(6) DEFINITIONS.—In this subsection, the 
term ‘campus’ has the meaning provided in sub-
section (f)(6).’’. 
SEC. 485. DISTANCE EDUCATION DEMONSTRATION PRO-
GRAM. 
(a) ELIGIBLE APPLICANTS.—Section 486(b)(3) (20 
U.S.C. 1093(b)(3)) is amended— 
(1) in subparagraph (B), by striking ‘‘section 
102(a)(1)(C)’’ and inserting ‘‘section 102’’; and 
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(2) in subparagraph (C), by striking ‘‘sub-
section (a) of section 102, other than the require-
ment of paragraph (3)(A) or (3)(B) of such sub-
section,’’ and inserting ‘‘section 101, other than the 
requirements of subparagraph (A) or (B) of sub-
section (b)(4) of such section’’. 
(b) SELECTION.—Section 486(d)(1) (20 U.S.C. 
1093(d)(1)) is amended— 
(1) by striking ‘‘the third year’’ and inserting 
‘‘subsequent years’’; 
(2) by striking ‘‘35 institutions’’ and inserting 
‘‘100 institutions’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘Not more than 5 of such institutions, sys-
tems, or consortia may be accredited, degree-grant-
ing correspondence schools.’’. 
SEC. 486. COLLEGE AFFORDABILITY DEMONSTRATION PRO-
GRAM. 
Part G of title IV is amended by inserting after sec-
tion 486 (20 U.S.C. 1093) the following new section: 
‘‘SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION 
PROGRAM. 
‘‘(a) PURPOSE.—It is the purpose of this section— 
‘‘(1) to provide, through a college affordability 
demonstration program, for increased innovation in 
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the delivery of higher education and student finan-
cial aid in a manner resulting in reduced costs for 
students as well as the institution by employing one 
or more strategies including accelerating degree or 
program completion, increasing availability of, and 
access to, distance components of education delivery, 
engaging in collaborative arrangements with other 
institutions and organizations, and other alternative 
methodologies; and 
‘‘(2) to help determine— 
‘‘(A) the most effective means of delivering 
student financial aid as well as quality edu-
cation; 
‘‘(B) the specific statutory and regulatory 
requirements that should be altered to provide 
for more efficient and effective delivery of stu-
dent financial aid, as well as access to high 
quality distance education programs, resulting 
in a student more efficiently completing post-
secondary education; and 
‘‘(C) the most effective methods of obtain-
ing and managing institutional resources. 
‘‘(b) DEMONSTRATION PROGRAM AUTHORIZED.— 
‘‘(1) IN
GENERAL.—In accordance with the 
purposes described in subsection (a) and the provi-
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sions of subsection (d), the Secretary is authorized 
to select not more than 100 institutions of higher 
education, including those applying as part of sys-
tems or consortia of such institutions, for voluntary 
participation in the College Affordability Demonstra-
tion Program in order to enable participating insti-
tutions to carry out such purposes by providing pro-
grams of postsecondary education, and making avail-
able student financial assistance under this title to 
students enrolled in those programs, in a manner 
that would not otherwise meet the requirements of 
this title. 
‘‘(2) WAIVERS.—The Secretary is authorized to 
waive for any institutions of higher education, or 
any system or consortia of institutions of higher 
education, selected for participation in the College 
Affordability Demonstration Program, any require-
ments of this Act or the regulations thereunder as 
deemed necessary by the Secretary to meet the pur-
pose described in subsection (a)(1), and shall make 
a determination that the waiver can reasonably be 
expected to result in reduced costs to students or in-
stitutions without an increase in Federal program 
costs. The Secretary may not waive under this para-
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graph the maximum award amounts for an academic 
year or loan period. 
‘‘(3) ELIGIBLE APPLICANTS.— 
‘‘(A) ELIGIBLE INSTITUTIONS.—Except as 
provided in subparagraph (B), only an institu-
tion of higher education that is eligible to par-
ticipate in programs under this title shall be eli-
gible to participate in the demonstration pro-
gram authorized under this section. 
‘‘(B) PROHIBITION.—An institution of 
higher education described in section 102 shall 
not be eligible to participate in the demonstra-
tion program authorized under this section. 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—Each institution or system 
of institutions desiring to participate in the dem-
onstration program under this section shall submit 
an application to the Secretary at such time and in 
such manner as the Secretary may require. 
‘‘(2) CONTENTS OF APPLICATIONS.—Each ap-
plication for the college affordability demonstration 
program shall include at least the following: 
‘‘(A) a description of the institution or sys-
tem or consortium of institutions and what 
quality assurance mechanisms are in place to 
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ensure the integrity of the Federal financial aid 
programs; 
‘‘(B) a description of the innovation or in-
novations being proposed and the affected pro-
grams and students, including— 
‘‘(i) a description of any collaborative 
arrangements with other institutions or or-
ganizations to reduce costs; 
‘‘(ii) a description of any expected 
economic impact of participation in the 
program within the community in which 
the institution is located; and 
‘‘(iii) a description of any means the 
institution will employ to reduce the costs 
of instructional materials, such as text-
books; 
‘‘(C) a description of each regulatory or 
statutory requirement for which waivers are 
sought, with a reason for each waiver; 
‘‘(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; 
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‘‘(E) an assurance from each institution in 
a system or consortium of a commitment to ful-
fill its role as described in the application; 
‘‘(F) 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 
‘‘(G) 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— 
‘‘(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, if applicable; 
‘‘(D) student completion rates; and 
‘‘(E) student loan default rates; and 
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‘‘(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 selected to participate in the dem-
onstration program authorized by this section. Such notice 
shall include a listing of the specific statutory and regu-
latory requirements being waived for each institution and 
a description of the innovations being demonstrated. 
‘‘(f) EVALUATIONS AND REPORTS.— 
‘‘(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 extent to which expected out-
comes, including the estimated reductions in 
cost, were achieved; 
‘‘(B) 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; 
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‘‘(C) issues related to student financial as-
sistance associated with the innovations under-
taken; 
‘‘(D) effective technologies and alternative 
methodologies for delivering student financial 
assistance; 
‘‘(E) the extent of the cost savings to the 
institution, the student, and the Federal Gov-
ernment resulting from the waivers provided, 
and an estimate as to future cost savings for 
the duration of the demonstration program; 
‘‘(F) the extent to which students saved 
money by completing their postsecondary edu-
cation sooner; 
‘‘(G) the extent to which the institution re-
duced its tuition and fees and its costs by par-
ticipating in the demonstration program; 
‘‘(H) the extent to which any collaborative 
arrangements with other institutions or organi-
zations have reduced the participating institu-
tion’s costs; and 
‘‘(I) the extent to which statutory or regu-
latory requirements not waived under the dem-
onstration program present difficulties for stu-
dents or institutions. 
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‘‘(2) POLICY
ANALYSIS.—The Secretary shall 
review current policies and identify those policies 
that present impediments to the implementation of 
innovations that result in cost savings and in ex-
panding 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); 
‘‘(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)); 
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‘‘(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. 
‘‘(h) TERMINATION OF AUTHORITY.—The authority 
of the Secretary under this section shall cease to be effec-
tive on October 1, 2012.’’. 
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS. 
(a) REFUND POLICIES.—Section 487(a) (20 U.S.C. 
1094(a)) is amended— 
(1) in paragraph (16), by inserting ‘‘or other 
Federal, State, or local government funds’’ after 
‘‘funds under this title’’ each place it appears; 
(2) in paragraph (22), by striking ‘‘refund pol-
icy’’ and inserting ‘‘policy on the return of title IV 
funds’’; and 
(3) in paragraph (23)— 
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(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) 
with respect to any student to whom the institution 
electronically transmits a message containing a voter 
registration 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) ENFORCING THE 90/10 RULE.— 
(1) AMENDMENT.—Section 487(a) (20 U.S.C. 
1094(a)) is further amended by adding at the end 
the following new paragraph: 
‘‘(24) The institution will, as calculated in ac-
cordance with subsection (f)(1), have at least 10 per-
cent of its revenues from sources other than funds 
provided under this title, or will be subject to the 
sanctions described in subsection (f)(2).’’. 
(2) IMPLEMENTATION.—Section 487 is further 
amended by adding at the end the following new 
subsection: 
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‘‘(f) IMPLEMENTATION OF NON-TITLE IV REVENUE 
REQUIREMENT.— 
‘‘(1) CALCULATION.—In carrying out sub-
section (a)(24), an institution shall use the cash 
basis of accounting and count the following funds to-
ward the 10 percent of revenues from sources of 
funds other than funds provided under this title: 
‘‘(A) funds used by students to pay tuition, 
fees, and other institutional charges from 
sources other than funds provided under this 
title as long as the institution can reasonably 
demonstrate that such funds were used for such 
purposes; 
‘‘(B) institutional funds used to satisfy 
matching-fund 
requirements 
for 
programs 
under this title; 
‘‘(C) funds from savings plans for edu-
cational expenses established pursuant to the 
Internal Revenue Code of 1986; 
‘‘(D) funds paid by a student, or on behalf 
of a student by a party other than the institu-
tion, for an education or training program that 
is not eligible for funds under this title, so long 
as the program is approved or licensed by the 
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appropriate State agency or an accrediting 
agency recognized by the Secretary; and 
‘‘(E) institutional aid, as follows: 
‘‘(i) in the case of institutional loans, 
only the amount of loan repayments re-
ceived during the fiscal year; and 
‘‘(ii) in the case of institutional schol-
arships, only those provided by the institu-
tion in the form of monetary aid or tuition 
discounts 
based 
upon 
the 
academic 
achievements or financial need of students, 
disbursed during the fiscal year from an 
established restricted account, and only to 
the extent that the funds in that account 
represent designated funds from an outside 
source or from income earned on those 
funds. 
‘‘(2) SANCTIONS.—An institution that fails to 
meet the requirements of subsection (a)(24) for 3 
consecutive years shall become ineligible to partici-
pate in the programs authorized by this title. In ad-
dition to such other means of enforcing the require-
ments of this title as may be available to the Sec-
retary, if an institution fails to meet the require-
ments of subsection (a)(24) in any year, the Sec-
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retary may impose one or more of the following 
sanctions on the institution: 
‘‘(A) Place the institution on provisional 
certification in accordance with section 498(h) 
until the institution demonstrates, to the satis-
faction of the Secretary, that it is in compliance 
with subsection (a)(24). 
‘‘(B) Require such other increased moni-
toring and reporting requirements as the Sec-
retary determines necessary until the institution 
demonstrates, to the satisfaction of the Sec-
retary, that it is in compliance with subsection 
(a)(24). 
‘‘(3) PUBLICATION
ON
COOL
WEBSITE.—The 
Secretary shall identify, on the College Opportunities 
On-Line website established pursuant to section 
131(b), any institution that fails to meet the re-
quirements of subsection (a)(24) in any year as an 
institution that is failing to meet the minimum non- 
Federal source of revenue requirements of that sub-
section.’’. 
(c) REPORTS ON DISCIPLINARY PROCEEDINGS.— 
(1) AMENDMENT.—Section 487(a) (20 U.S.C. 
1094(a)) is further amended by adding after para-
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graph (24), as added by subsection (b) of this sec-
tion, the following new paragraph: 
‘‘(25) The institution will disclose to the alleged 
victim of any crime of violence (as that term is de-
fined in section 16 of title 18), or a nonforcible sex 
offense, the final results of any disciplinary pro-
ceeding conducted by such institution against a stu-
dent who is the alleged perpetrator of such crime or 
offense with respect to such crime or offense. If the 
alleged victim of such crime or offense is deceased, 
the next of kin of such victim shall be treated as the 
alleged victim for purposes of this paragraph.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply with respect to any dis-
ciplinary proceeding conducted by such institution 
on or after one year after the date of enactment of 
this Act. 
(d) AUDIT REQUIREMENTS.—Section 487(c)(1)(A)(i) 
(20 U.S.C. 1094(c)(1)(A)(i)) is amended by inserting be-
fore the semicolon at the end the following: ‘‘, except that 
the Secretary may modify the requirements of this clause 
with respect to institutions of higher education that are 
foreign institutions, and may waive such requirements 
with respect to a foreign institution whose students receive 
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less than $500,000 in loans under this title during the 
award year preceding the audit period’’. 
SEC. 488. ADDITIONAL TECHNICAL AND CONFORMING 
AMENDMENTS. 
Part G is further amended as follows: 
(1) Section 483(d) (20 U.S.C. 1090(d)) is 
amended by striking ‘‘that is authorized under sec-
tion 685(d)(2)(C)’’ and inserting ‘‘, or another ap-
propriate provider of technical assistance and infor-
mation on postsecondary educational services, that is 
supported under section 663’’. 
(2) Section 484 (20 U.S.C. 1091) is amended— 
(A) in subsection (a)(4), by striking ‘‘cer-
tification,,’’ and inserting ‘‘certification,’’; and 
(B) in subsection (b)(2)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘section 428A’’ and 
inserting ‘‘section 428H’’; 
(ii) in subparagraph (A), by inserting 
‘‘and’’ after the semicolon at the end 
thereof; 
(iii) in subparagraph (B), by striking 
‘‘; and’’ and inserting a period; and 
(iv) by striking subparagraph (C). 
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(3) 
Section 
484A(b)(2) 
(20 
U.S.C. 
1091a(b)(2)) is amended by striking ‘‘part B of this 
title’’ and inserting ‘‘part B, D, or E of this title’’. 
(4) Section 485B(a) (20 U.S.C. 1092b(a)) is 
amended— 
(A) 
by 
redesignating 
paragraphs 
(6) 
through (10) as paragraphs (7) through (11), 
respectively; 
(B) by redesignating the paragraph (5) (as 
added by section 2008 of Public Law 101–239) 
as paragraph (6); and 
(C) in paragraph (5) (as added by section 
204(3) of the National Community Service Act 
of 1990 (Public Law 101–610))— 
(i) by striking ‘‘(22 U.S.C. 2501 et 
seq.)),’’ and inserting ‘‘(22 U.S.C. 2501 et 
seq.),’’; and 
(ii) by striking the period at the end 
thereof and inserting a semicolon. 
(5) Section 487A(b) (20 U.S.C. 1094a(b)) is 
amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘Higher Education 
Amendments of 1998’’ and inserting ‘‘Col-
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