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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-
268
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-
269
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