SOURCE: 53 FR 11210, Apr. 5, 1988, unless otherwise noted.

PART 600-INSTITUTIONAL ELIGI

BILITY UNDER THE HIGHER EDUCATION ACT OF 1965,

1965, AS AMENDED

Subpart A-General

Subpart A-General

SOURCE: 59 FR 22336, Apr. 29, 1994, unless otherwise noted.

Sec. 600.1 Scope. 600.2 Definitions. 600.3 (Reserved) 600.4 Institution of higher education. 600.5 Proprietary institution of higher edu

cation. 600.6 Postsecondary vocational institution. 600.7 Conditions of institutional ineligibil

ity. 600.8 Treatment of a branch campus. 600.9 Written agreement between an eligible

institution and another institution or or

ganization. 600.10 Date, extent, duration, and con

sequence of eligibility. 600.11 Special rules regarding institutional

accreditation or preaccreditation.

8 600.1 Scope.

This part establishes the rules and procedures that the Secretary uses to determine whether an educational institution qualifies in whole or in part as an eligible institution of higher education under the Higher Education Act of 1965, as amended (HEA). An eligible institution of higher education may apply to participate in programs authorized by the HEA (HEA programs). (Authority: 20 U.S.C. 1088, 1094, 1099b, 10990, and 1141)

Subpart B-Procedures for Establishing

Eligibility

600.20 Application procedures. 600.21 Eligibility notification.

Subpart C-Maintaining Eligibility

600.30 Institutional notification require

ments. 600.31 Change in ownership resulting in a

change of control. 600.32 Eligibility of additional locations.

Subpart D-Loss of Eligibility 600.40 Loss of eligibility. 600.41 Termination and emergency action

proceedings. Subpart E-Eligibility of Foreign Institutions

To Apply To Participate in the Federal

Family Education Loan (FFEL) Programs 600.51 Purpose and scope. 600.52 Definitions. 600.53 Requesting an eligibility determina

tion. 600.54 Criteria for determining whether a

foreign institution is eligible to apply to

participate in the FFEL programs. 600.55 Additional criteria for determining

whether a foreign graduate medical school is eligible to apply to participate

in the FFEL programs. 600.56 Duration of eligibility determination.

AUTHORITY: 20 U.S.C. 1088, 1091, 1094, 1099b, 1099c, and 1141, unless otherwise noted.

$ 600.2 Definitions.

The following definitions apply to terms used in this part:

Accredited: The status of public recognition that a nationally recognized accrediting agency grants to an institution or educational program that meets the agency's established requirements.

Award year: The period of time from July 1 of one year through June 30 of the following year.

Branch Campus: A location of an institution that is geographically apart and independent of the main campus of the institution. The Secretary considers a location of an nstitution to be independent of the main campus if the location

(1) Is permanent in nature;

(2) Offers courses in educational programs leading to a degree, certificate, or other recognized educational credential;

(3) Has its own faculty and administrative or supervisory organization; and

Has its own budgetary and hiring authority.

Clock hour: A period of time consisting of

(1) A 50- to 60-minute class, lecture, or recitation in a 60-minute period;

(2) A 50- to 60-minute faculty-supervised laboratory, shop training, or internship in a 60-minute period; or

cor

(3) Sixty minutes of preparation in a correspondence course.

Correspondence course: (1) A “home study" course provided by an institution under which the institution provides instructional materials, including examinations on the materials, to students who are not physically attending classes at the institution. When students complete a portion of the instructional materials, the students take the examinations that relate to that portion of the materials, and return the examinations to the institution for grading.

(2) A home study course that provides instruction in whole or in part through the use of video cassettes or video discs in an award year is a correspondence course unless the institution also delivers the instruction on the cassette or disc to students physically attending classes at the institution during the same award year.

(3) A course at an institution that may otherwise satisfy the definition of a “telecommunications course" is a correspondence course if the sum of telecommunications and other respondence courses offered by that institution equals or exceeds 50 percent of the total courses offered at that institution.

(4) If a course is part correspondence and part residential training, the Secretary considers the course to be a correspondence course.

Educational program: A legally authorized postsecondary program of organized instruction or study that leads to an academic, professional, or vocational degree, or certificate, or other recognized educational credential. However, the Secretary does not consider that an institution provides an educational program if the institution does not provide instruction itself (including a course of independent study), but merely gives credit for one or more of the following: instruction provided by other institutions or schools; examinations provided by agencies or organizations; or other accomplishments such as “life experience.”

Eligible institution: An institution that

(1) Qualifies as

(i) An institution of higher education, as defined in $ 600.4;

(ii) A proprietary institution of higher education, as defined in $ 600.5; or

(iii) A postsecondary vocational institution, as defined in $600.6; and

(2) Meets all the other applicable provisions of this part.

Federal Family Education Loan (FFEL) programs: The loan programs (formerly called the Guaranteed Student Loan (GSL) programs) authorized by title IV-B of the HEA, including the Federal Stafford Loan, Federal PLUS, Federal Supplemental Loans for Students (Federal SLS), and Federal Consolidation Loan programs, in which lenders use their own funds to make loans to enable students or their parents to pay the costs of the students' attendance at eligible institutions. The Federal Stafford Loan, Federal PLUS, Federal SLS, and Federal Consolidation Loan programs are defined in 34 CFR part 668.

Incarcerated student: A student who is serving a criminal sentence in a Federal, State, or local penitentiary, prison, jail, reformatory, work farm, or other similar correctional institution. A student is not considered incarcerated if that student is in a half-way house or home detention or is sentenced to serve only weekends.

Legally authorized: The legal status granted to an institution through a charter, license, or other written document issued by the appropriate agency or official of the State in which the institution is physically located.

Nationally recognized accrediting agency: An agency or association that the Secretary recognizes as a reliable authority to determine the quality of education or training offered by an institution or a program offered by an institution. The Secretary recognizes these agencies and associations under the provisions of 34 CFR part 602 and publishes a list of the recognized agencies in the FEDERAL REGISTER.

Nonprofit institution: An institution that

(1) Is owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which benefits any private shareholder or individual;

(2) Is legally authorized to operate as a nonprofit organization by each State in which it is physically located; and