The Code of Federal Regulations of the United States of America

The following definitions apply to terms used in this part:

Accredited: The status of public recognition which a nationally recognized accrediting agency or association grants to an institution, school, or educational program which meets certain established qualifications and educational standards.

Clock hour: A period of time consisting of

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

(b) A 50- to 60-minute faculty-supervised laboratory, shop training, or internship; or

Educational program: A legally authorized postsecondary program of organized instruction or study which leads to an academic or professional degree, vocational 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: Includes

(a) An institution of higher education, as defined in § 600.4;

(b) A proprietary institution of higher education, as defined in § 600.5; (c) A postsecondary vocational institution, as defined in § 600.6; and

(d) A vocational school, as defined in § 600.7.

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 or association: An agency or association that the Secretary has recognized to accredit or preaccredit a particular category of institution, school, or educational program in accordance with the provisions con

tained in 34 CFR Part 603. The Secretary periodically publishes a list of those nationally recognized accrediting agencies and associations in the FEDERAL REGISTER.

Nonprofit institution: An institution that

(a) 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;

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

(c) Is determined by the U.S. Internal Revenue Service to be an organization to which contributions are tax deductible in accordance with section 501(c)(3) of the Internal Revenue Code.

One-year training program: An educational program that is at least

(a) Twenty-four semester or trimester hours or units, or 36 quarter hours or units, at an institution using credit hours or units to measure academic progress;

(b) Nine hundred clock hours of supervised training at an institution using clock hours to measure academic progress; or

(c) Nine hundred clock hours in a program of study by correspondence. Part B loan programs: The Guaranteed Student Loan (GSL), PLUS, Supplemental Loans for Students, and Consolidated Loan Programs. Each of these loan programs is authorized under Part B of Title IV of the HEA. Preaccredited: A status that

(a) A nationally recognized accrediting agency or association, recognized by the Secretary to grant that status, has accorded an unaccredited public or private nonprofit institution that is progressing toward accreditation within a reasonable period of time; and

(b) The Secretary determines is the exclusive indication under sections 435(b)(5)(A) and 1201(a)(5)(A) of the HEA that an institution will meet the accreditation standards of a nationally recognized accrediting agency or association within a reasonable time.

Program of study by correspondence: An educational program offered prin

cipally by mail by an institution. Under this type of program, the institution prepares lesson materials and mails them to the student in a sequential and logical order. The student completes the lessons and mails them back to the institution within a specified period of time. The program may include a required period of residential training.

Recognized equivalent of a high school diploma:

(a) A General Education Development (GED) Certificate; or

(b) A State certificate received by a student after the student has passed a State authorized examination which the State recognizes as the equivalent of a high school diploma.

Recognized occupation: An occupation that is

(a) Listed in an "occupational division" of the latest edition of the Dictionary of Occupational Titles, published by the U.S. Department of Labor, or

(b) Determined by the Secretary in consultation with the Secretary of Labor to be a recognized occupation.

Regular student: A person who is enrolled or accepted for enrollment at an institution for the purpose of obtaining a degree or certificate.

Secretary: The Secretary of the Department of Education or an official or employee of the Department of Education acting for the Secretary under a delegation of authority.

Six-month training program: Either-(a) An educational program that is at least

(1) Sixteen semester or trimester hours or units, or 24 quarter hours or units, at an institution using credit hours or units to measure academic progress;

(2) Six hundred clock hours of supervised training at an institution using clock hours to measure academic progress; or

(3) Six hundred clock hours in a program of study by correspondence; or

(b) An educational program which the Secretary determines is at least a six-month training program on the basis of

(1) A certification by the nationally recognized accrediting association that accredits the institution that the pro

gram offered by the institution is equal in course content and student workload to the comparable clock or credit hour program described in paragraphs (a) (1) through (3) of this definition; and

(2) The Secretary's ratification of that accrediting agency's determination.

State: A State of the Union, American Samoa, the Commonwealth of Puerto Rico, the District of Columbia, Guam, the Trust Territories of the Pacific Islands, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

(Authority: 20 U.S.C. 1071 et seq.; 1078-2, 1085, 1088, and 1141 and 26 U.S.C. 501(c))

§ 600.3 Special conditions.

For the purpose of §§ 600.4, 600.5, 600.6, and 600.7:

(a) The Secretary considers an institution other than one offering only a program of correspondence to be "in a State" only if the institution's campus or place of instruction is physically located in that State.

(b) The Secretary considers an institution offering only a program of study by correspondence to be located only in the State in which its administrative office is located if the program does not include a period of residential training. If the program includes a period of residential training, the Secretary considers the institution to be located and the State in which its administrative office is located and the State in which its residential program is located.

(c)(1) If a State requires an institution to measure its educational programs in clock hours in order to be legally authorized in that State to provide a program of education beyond secondary education, the Secretary considers that institution is legally authorized in that State to provide a program of education beyond secondary education only if the institution measures its educational programs in clock hours.

(2) If a State requires a vocational school to measure its vocational or technical education programs in clock hours in order to be legally authorized in the State to provide a program of postsecondary vocational or technical

education, the Secretary considers that vocational school to be legally authorized to provide a program postsecondary vocational or technical education in that State only if the vocational school measures its vocational or technical programs in clock hours.

(d)(1) If as part of the application process for receiving a license, charter, or other document that demonstrates it is legally authorized to provide a program of education beyond secondary education in a State, the State requires an institution to measure its educational programs in clock hours, the Secretary considers that institution to be legally authorized to provide a program of education beyond secondary education in that State only if the institution measures its educational programs in clock hours.

(2) If as part of the application process for receiving a license, charter, or other document that demonstrates it is legally authorized to provide a postsecondary vocational or technical education program in a State, the State requires a vocational school to measure its educational programs in clock hours, the Secretary considers that institution to be legally authorized to provide a program of education beyond secondary education in that State only if the institution measures its educational programs in clock hours.

(Authority: 20 U.S.C. 1085 (b) and (c), 1088 (b) and (c), and 1141(a))

§ 600.4 Institution of higher education.

(a) An institution of higher education is a public or private non-profit educational institution which

(1) Is in a State;

(2) Admits as regular students only persons who

(i) Have a high school diploma; (ii) Have the recognized equivalent of a high school diploma; or

(iii) Are beyond the age of compulsory school attendance in the State in which the institution is located, and, if the institution seeks to participate in a program other than a Part B loan program, have the ability to benefit, as determined by the institution in accordance with § 600.11, from the training offered;

(3) Is legally authorized to provide an educational program beyond secondary education in the State in which the institution is located;

(4) Provides an educational program

(i) For which it awards an associate, baccalaureate, graduate, or professional degree, or other recognized educational credential;

(ii) Which is at least a two-year program acceptable for full credit toward a baccalaureate degree; or

(iii) Which is at least a one-year training program that leads to a certificate, degree, or other recognized educational credential and prepares students for gainful employment in a recognized occupation; and

(5) Is

(i) Accredited or preaccredited by a nationally recognized accrediting

agency or association;

(ii) An institution whose credits the Secretary determines, in accordance with the provisions contained in § 600.8, to be accepted on transfer by at least three accredited institutions for credit on the same basis as transfer credits from any accredited institution; or

(iii) Approved by a State agency that the Secretary recognizes, by listing in the FEDERAL REGISTER in accordance with 34 CFR Part 603, as a reliable authority on the quality of public postsecondary vocational education in its State, if the institution

(A) Is a public postsecondary vocational educational institution; and

(B) Seeks to participate only in Federal student assistance programs.

(b)(1) An institution, other than an institution that is eligible to participate only in a Part B loan program, that admits as regular students persons who do not have a high school diploma or its recognized equivalent and who are beyond the age of compulsory school attendance in the State in which the institution is located, shall consistently apply standards and procedures for determining, in accordance with 600.11, whether these persons have the ability to benefit from the education or training it offers.

(2) An institution must be able to demonstrate, upon request of the Secretary, that each regular student that

it admitted who did not have a high school diploma or its recognized equivalent satisfied the institution's standards under paragraph (b)(1) of this section.

(3) An institution shall retain for at least five years documentation that demonstrates a student's ability to complete successfully the program in which the student was enrolled, if the student was admitted to the institution under the institution's ability-tobenefit standards.

(c) Notwithstanding the provisions in paragraph (a) of this section, the Secretary does not determine an institution to be eligible to apply to participate in the Part B loan programs if the institution uses or employs commissioned salespersons to promote the availability of Part B loan program loans at that institution.

(Approved by the Office of Management and Budget under control number 18400098)

(Authority: 20 U.S.C. 1085, 1094(c)(3), and 1141(a))

[53 FR 11210, Apr. 5, 1988, as amended at 53 FR 49146, Dec. 6, 1988; 54 FR 27161, June 28, 1989]

§ 600.5 Proprietary institution of higher

education.

(a) A proprietary institution of higher education is an educational institution which

(1) Is not a public or private nonprofit educational institution;

(2) Is in a State;

(3) Admits as regular students only persons who

(i) Have a high school diploma; (ii) Have the recognized equivalent of a high school diploma; or

(iii) Are beyond the age of compulsory school attendance in the State in which the institution is located and have the ability to benefit, as determined by the institution in accordance with § 600.11, from the training offered;

(4) Is legally authorized to provide an educational program beyond secondary education in the State in which the institution is physically located;

(5) Provides at least a six-month training program to prepare students

for gainful employment in a recognized occupation;

(6) Is accredited by a nationally recognized accrediting agency or association; and

(7) Has been in existence for at least two years. The Secretary considers a proprietary institution to have been in existence for two years only if it has been legally authorized to provide, and has provided, a continuous training program to prepare students for gainful employment in a recognized occupation during the 24 months (except for normal vacation periods) preceding the date of application for eligibility.

(b)(1) A proprietary institution that admits as regular students persons who do not have a high school diploma or its recognized equivalent and who are beyond the age of compulsory school attendance in the State in which the institution is located, shall consistently apply standards and procedures for determining, in accordance with § 600.11, whether these students have the ability to benefit from the education or training it offers.

(2) An institution must be able to demonstrate, upon request of the Secretary, that each regular student that it admitted who did not have a high school diploma or its recognized equivalent satisfied the institution's standards under paragraph (b)(1) of this section.

(3) An institution must retain for at least five years documentation that demonstrates a student's ability to complete successfully the program in which the student was enrolled, if the student was admitted to the institution under the institution's ability-tobenefit standards.

(Approved by the Office of Management and Budget under control number 18400098)

(Authority: 20 U.S.C. 1068(b))

[53 FR 11210, Apr. 5, 1988, as amended at 53 FR 49146, Dec. 6, 1988; 54 FR 27161, June 28, 1989]

§ 600.6 Postsecondary vocational institution.

(a) A postsecondary vocational institution is a public or private nonprofit educational institution which—

(1) Is in a State;

(2) Admits as regular students only persons who

(i) Have a high school diploma; (ii) Have the recognized equivalent of a high school diploma; or

(3) Is legally authorized to provide an educational program beyond secondary education in the State in which the institution is physically located.

(4) Provides at least a six-month training program to prepare students for gainful employment in a recognized occupation;

(5) Is

(i) Accredited or preaccredited by a nationally recognized accrediting

agency or association;

(6) Has been in existence for at least two years. The Secretary considers an institution to have been in existence for two years only if it has been legally authorized to provide, and has provided, a continuous training program to prepare students for gainful employment in a recognized occupation during the 24 months (except for normal vacation periods) preceding the date of application for eligibility.

(b)(1) A postsecondary vocational institution that admits as regular students persons who do not have a high school diploma or its recognized equivalent and who are beyond the age of compulsory school attendance in the

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