Accreditation Requirements in 668.43 (Individuals & Households)

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Accreditation, Innovation, and Modernization (AIM)
Negotiated Rulemaking
April 13-17 and May 18-22, 2026
FINAL VERSION (5/21/26) CONSENSUS

PART 600—INSTITUTIONAL ELIGIBILITY UNDER THE HIGHER EDUCATION
ACT OF 1965, AS AMENDED
Authority: 20 U.S.C. 1001, 1002, 1003, 1088, 1091, 1094, 1099b,
and 1099c, unless otherwise noted.

Subpart A—General
* * * * *
§ 600.11 Special rules regarding institutional accreditation or
preaccreditation.

(a) Change of accrediting agencies.

(1) For purposes of §§ 600.4(a)(5)(i), 600.5(a)(6), and
600.6(a)(5)(i), the Secretary does not recognize the
accreditation or preaccreditation of an otherwise eligible
institution if that institution is in the process of changing
its accrediting agency, unless the institution provides the
following to the Secretary and receives approval:

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(i) All materials related to its prior accreditation or
preaccreditation.

(ii) Materials demonstrating reasonable cause for changing its
accrediting agency. The Secretary will not determine such cause
to be reasonable unless the Secretary determines that if the
institution is seeking the change in order to—

(A) Evade or circumvent a requirement of Federal law or
regulation;

(B) Avoid or delay enforcement or oversight by the Department or
an accrediting agency;

(C) Obtain eligibility for title IV, HEA programs through
misrepresentation or other unlawful means; or

(D) Otherwise undermine the integrity of the title IV, HEA
programs.

(2) The institution must publicly disclose within 10 business
days on its website and make reasonable efforts to notify all
current students, and recent graduates for whom they have active
contact information, of the change of accrediting agency.
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(A) Has had its accreditation withdrawn, revoked, or otherwise
terminated for cause during the preceding 24 months, unless such
withdrawal, revocation, or termination has been rescinded by the
same accrediting agency; or

(B) Has been subject to a probation or equivalent, show cause
order, or suspension order during the preceding 24 months.

(2) Notwithstanding paragraph (a)(1)(ii) of this section, the
Secretary may determine the institution's cause for changing its
accrediting agency to be reasonable if the agency did not
provide the institution its due process rights as defined in §
602.25, the agency applied its standards and criteria
inconsistently, or if the adverse action or show cause or
suspension order was the result of an agency's failure to
respect an institution's stated mission, including religious
mission.

(b) Multiple accreditation.

(1) An institution may obtain accreditation or preaccreditation
from more than one accrediting agency recognized by the

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Secretary if the institution provides the following to the
Secretary:

(i) Materials related to its prior accreditation or
preaccreditation;

(ii) A written explanation showing reasonable cause for having
multiple accreditors. The Secretary will determine such cause to
be reasonable unless the Secretary determines that the
institution is seeking to be accredited by more than one
accrediting agency in order to—

(A) Evade or circumvent a requirement of Federal law or
regulation;

(B) Avoid or delay enforcement or oversight by the Department or
an accrediting agency;

(C) Obtain eligibility for title IV, HEA programs through
misrepresentation or other unlawful means; or

(D) Otherwise undermine the integrity of the title IV, HEA
programs.

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(2) The Secretary will not determine the cause of having
multiple accrediting agencies to be unreasonable due to a
withdrawal, revocation, other termination of accreditation,
probation or equivalent, show cause order, or suspension order.

The Secretary does not recognize the accreditation or
preaccreditation of an otherwise eligible institution if that
institution is accredited or preaccredited as an institution by
more than one accrediting agency, unless the institution—

(1) Provides to each such accrediting agency and the Secretary
the reasons for that multiple accreditation or preaccreditation;

(2) Demonstrates to the Secretary reasonable cause for that
multiple accreditation or preaccreditation.

(i) The Secretary determines the institution's cause for
multiple accreditation to be reasonable unless the institution—

(A) Has had its accreditation withdrawn, revoked, or otherwise
terminated for cause during the preceding 24 months, unless such
withdrawal, revocation, or termination has been rescinded by the
same accrediting agency; or

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(B) Has been subject to a probation or equivalent, show cause
order, or suspension order during the preceding 24 months.

(ii) Notwithstanding paragraphs (b)(2)(i)(A) and (B) of this
section, the Secretary may determine the institution's cause for
seeking multiple accreditation or preaccreditation to be
reasonable if the institution's primary interest in seeking
multiple accreditation is based on that agency's geographic
area, program-area focus, or mission; and

* * * * *

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PART 602—THE SECRETARY'S RECOGNITION OF ACCREDITING AGENCIES
Authority: 20 U.S.C. 1099b, unless otherwise noted.

Subpart A—General
* * * * *
§ 602.2 How do I know which agencies the Secretary recognizes?
(a) Periodically, the Secretary publishes a list of recognized
agencies in the Federal Register, together with each agency's
scope of recognition. You may obtain a copy of the list from the
Department at any time. The list is also available on the
Department's web site website.
(b) If the Secretary denies continued recognition to a
previously recognized agency, or if the Secretary limits,
suspends, or terminates the agency's recognition before the end
of its recognition period, the Secretary publishes an
announcement notice of that action on the Department’s website,
which includes the reasons for the action and date it was taken,
and also publishes such information of the list and scope of
recognized agencies published in the Federal Register pursuant
to subsection (a) in the Federal Register. The Secretary also
makes the reasons for the action available to the public, on
request.
(Authority: 20 U.S.C. 1099b)

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§ 602.3 What definitions apply to this part?
(a) The following definitions are contained in the regulations
for Institutional Eligibility under the Higher Education Act of
1965, as amended, 34 CFR part 600:
(1) Accredited.
(2) Additional location.
(3) Branch campus.
(4) Correspondence course.
(5) Direct assessment program.
(6) Distance education.
(7) Institution of higher education.
(78) Nationally recognized accrediting agency.
(89) Preaccreditation.
(910) Religious mission.
(1011) Secretary.
(1112) State.
(1213) Teach-out.
(1314) Teach-out agreement.
(1415) Teach-out plan
(b) The following additional definitions apply to this part:
Accreditation means the status of public recognition that an
accrediting agency grants to an educational institution or
program that meets the agency's standards and requirements.

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Accrediting agency or agency means a legal entity, or that part
of a legal entity, that conducts accrediting activities through
voluntary, non-Federal peer review, that may include peer
review, and makes decisions concerning the accreditation or
preaccreditation status of institutions, programs, or both.

Act means the Higher Education Act of 1965, as amended.

Adverse accrediting action or adverse action means the denial,
withdrawal, suspension, revocation, or termination of
accreditation or preaccreditation, or any comparable accrediting
action an agency may take against an institution or program.

Advisory Committee means the National Advisory Committee on
Institutional Quality and Integrity.

Compliance report means a written report that the Department
requires an agency to file when the agency is found to be out of
compliance to demonstrate that the agency has corrected
deficiencies specified in the decision letter from the senior
Department official or the Secretary. Compliance reports must be
reviewed by Department staff and the Advisory Committee and
approved by the senior Department official or, in the event of
an appeal, by the Secretary.
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Designated Federal Official means the Federal officer designated
under section 10(f) of the Federal Advisory Committee Act, 5
U.S.C. Appdx. 1.

Final accrediting action means a final determination by an
accrediting agency regarding the accreditation or
preaccreditation status of an institution or program. A final
accrediting action is a decision made by the agency, at the
conclusion of any appeals process available to the institution
or program under the agency's due process policies and
procedures.

Institution means an educational institution that meets the
requirements of paragraph (1) of the definition of eligible
institution found in 34 CFR 600.2.

Institutional accrediting agency means an agency that accredits
institutions of higher education.

Monitoring report means a report that an agency is required to
submit to Department staff when it is found to be substantially
compliant. The report contains documentation to demonstrate
that—
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(i) The agency is implementing its current or corrected
policies; or

(ii) The agency, which is compliant in practice, has updated its
policies to align with those compliant practices.

Program means a postsecondary educational program offered by an
institution of higher education that leads to an academic or
professional degree, certificate, or other recognized
educational credential.

Programmatic accrediting agency means an agency that accredits
specific educational programs, including those that prepare
students in specific academic disciplines or for entry into a
profession, occupation, or vocation.

Recognition means an unappealed determination by the senior
Department official under § 602.36, or a determination by the
Secretary on appeal under § 602.37, that an accrediting agency
complies with the criteria for recognition listed in subpart B
of this part and that the agency is effective in its application
of those criteria. A grant of recognition to an agency as a
reliable authority regarding the quality of education or
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training offered by institutions or programs it accredits
remains in effect for the term granted except upon a
determination made in accordance with subpart C of this part
that the agency no longer complies with the subpart B criteria
or that it has become ineffective in its application of those
criteria.

Related, associated, or affiliated trade association means an
organization that:

(i) is generally a membership organization;

(ii) is organized to promote a line of commerce, business,
industry, or profession;

(iii) does not engage in a regular business of a kind ordinarily
carried on for profit, and no part of the net earnings of which
inures to the benefit of any member; and

(iv) is related to a particular accrediting agency in that the
agency accredits institutions or programs that prepare students
to enter the work force of the same or substantially the same
line of commerce, business, industry, or profession that
organization promotes.
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Representative of the public means a person who is not—

(1) An employee, member of the governing board, owner, or
shareholder of, or consultant to, an institution or program that
either is accredited or preaccredited by the agency or has
applied for accreditation or preaccreditation;

(2) A member of any trade association or membership organization
related to, affiliated with, or associated with, or affiliated
with the agency; or

(3) A spouse, parent, child, or sibling of an individual
identified in paragraph (1) or (2) of this definition; or.

Scope of recognition or scope means the range of accrediting
activities for which the Secretary recognizes an agency. The
Secretary may place a limitation on the scope of an agency's
recognition for title IV, HEA purposes. The Secretary's
designation of scope defines the recognition granted according
to—

(i) Types of degrees and certificates covered;

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(ii) Types of institutions and programs covered;

(iii) Types of preaccreditation status covered, if any; and

(iv) Coverage of accrediting activities related to distance
education or correspondence courses.

Senior Department official means the official in the U.S.
Department of Education designated by the Secretary who has, in
the judgment of the Secretary, appropriate seniority and
relevant subject matter knowledge to make independent decisions
on accrediting agency recognition.

Substantial compliance means the agency demonstrated to the
Department that it has the necessary policies, practices, and
standards in place and generally adheres with fidelity to those
policies, practices, and standards; or the agency has policies,
practices, and standards in place that need minor modifications
to reflect its generally compliant practice.
* * * * *

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Subpart B—The Criteria for Recognition
BASIC ELIGIBILITY REQUIREMENTS
§ 602.10 Link to Federal programs.
The agency must demonstrate that—

(a) If the agency is seeking renewal of recognition and the
agency accredits institutions of higher education, it must
demonstrate that its accreditation is a required element in
enabling at least one of those institutions to establish
eligibility to participate in the title IV, HEA programs. If,
pursuant to 34 CFR 600.11(b), an agency accredits one or more
institutions that participate in the title IV, HEA programs and
that could designate the agency as its link to the title IV, HEA
programs, the agency satisfies this requirement, even if the
institution currently designates another institutional
accrediting agency as its Federal link; or

(b) If the agency is seeking renewal of recognition and the
agency accredits institutions of higher education or higher
education programs, or both, it must demonstrate that its
accreditation is a required element, as stated in a Federal
statute, Federal regulation, Federal grant or funding
announcement, or other official Federal agency notice
establishing eligibility requirements for participation in the
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program, in enabling at least one of those entities to establish
eligibility to participate in non-HEA Federal programs and
provide documentation that an institution or program is
currently relying on the agency’s accreditation as a condition
of eligibility to participate in such programs.

(c)(1) If the agency is seeking initial recognition, it must
demonstrate that an institution or program it accredits is
likely to rely on the agency’s accreditation to establish or
continue eligibility to participate in an HEA or non-HEA Federal
program upon recognition of the agency within two years.

(2) In the event the agency does not have an institution or
program that is relying upon the agency’s accreditation to
establish or continue eligibility to participate in an HEA or
non-HEA Federal program when the agency is recognized by the
Department, it must report to the Secretary when the first
institution or program it accredits begins relying upon its
accreditation for such purposes.

(3) If, after two years after initial recognition, there are no
institutions or programs that rely on the agency’s accreditation
to establish or continue eligibility to participate in an HEA or

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non-HEA Federal program upon recognition of the agency, then the
agency ceases to be recognized by the Department.
(Authority: 20 U.S.C. 1099b)

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§ 602.11 Geographic area Extent of accrediting activities.
(a) The agency must identify the extent of its accrediting
activities and demonstrate that it has the capacity, policies,
and procedures necessary to conducts accrediting activities
within a State, if the agency is part of a State government;
the identified extent.

(b)(1) An agency may seek recognition to operate in a group of
States, or in all States, but the Secretary does not assign,
prefer, or limit geographic extent, except as necessary to
ensure that the agency has the capacity to carry out its
intended accrediting activities.

(2) The Secretary may not assign institutions or programs to
accrediting agencies, restrict institutions or programs from
seeking accreditation from any agency recognized by the
Secretary, directly or indirectly discourage institutions or
programs from seeking accreditation from another recognized
agency through policy, guidance, communications, or other
actions, or otherwise favor one recognized accrediting agency
over another.

(3) The Secretary may not delay, condition, or otherwise
adversely affect an institution’s participation in title IV, HEA
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programs solely because the institution seeks accreditation
from, or changes accreditation to, another agency recognized by
the Secretary.

(b) A region or group of States chosen by the agency in which an
agency provides accreditation to a main campus, a branch campus,
or an additional location of an institution. An agency whose
geographic area includes a State in which a branch campus or
additional location is located is not required to also accredit
a main campus in that State. An agency whose geographic area
includes a State in which only a branch campus or additional
location is located is not required to accept an application for
accreditation from other institutions in such State; or

(c) The United States.

(Authority: 20 U.S.C. 1099b)

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§ 602.12 Accrediting experience.
(a) An agency seeking initial recognition must demonstrate that
it has sufficient accreditation experience prior to submitting
an application for recognition. An agency will be eligible to
submit an application for recognition when it can show the
following—

(1)

The agency is legally established to operate in the

relevant jurisdiction;

(2)

The agency has adopted accreditation standards consistent

with § 602.16;

(3) The agency has adopted operating procedures consistent with
§ 602.23; and

(4)

The agency has established a process to accept applications

for accreditation consistent with 34 CFR 602.17 and has at least
one institution or program which has submitted an application
for accreditation.

(b) An agency seeking initial recognition must undergo the
Secretary’s recognition process, defined in § 602.31, and an
evaluation of the agency’s compliance with the Secretary’s
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recognition criteria, defined in 34 CFR part 602, for the
purpose of determining if the agency is a reliable authority as
the quality of education or training provided by the
institutions or programs it accredits before its application for
recognition may be considered by the Advisory Committee.

(c) The agency must have granted accreditation to one or more
institutions if it is requesting recognition as an institutional
accrediting agency and to one or more programs if it is
requesting recognition as a programmatic accrediting agency
before the agency may be granted recognition.

—(1)Granted accreditation or preaccreditation prior to
submitting an application for recognition —
(i) To one or more institutions if it is requesting recognition
as an institutional accrediting agency and to one or more
programs if it is requesting recognition as a programmatic
accrediting agency;
(ii) That covers the range of the specific degrees,
certificates, institutions, and programs for which it seeks
recognition; and
(iii) In the geographic area for which it seeks recognition; and
(2) Conducted accrediting activities, including deciding whether
to grant or deny accreditation or preaccreditation, for at least
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two years prior to seeking recognition, unless the agency
seeking initial recognition is affiliated with, or is a division
of, an already recognized agency.

(bd)(1) A recognized agency seeking an expansion or contraction
of its scope of recognition must follow the requirements of §§
602.31 and 602.32 and demonstrate that it has accreditation or
preaccreditation policies in place that meet all the criteria
for recognition covering the range of the specific degrees,
certificates, institutions, and programs for which it seeks the
expansion of in its proposed scope and has engaged and can show
support from relevant constituencies for the expansion. A change
to an agency's geographic area of accrediting activities does
not constitute an expansion or contraction of the agency's scope
of recognition, but the agency must notify the Department of,
and publicly disclose on the agency's website, any such change.

(2) An agency that cannot demonstrate experience in making
accreditation or preaccreditation decisions under an expanded
scope at the time of its application or review for an expansion
of scope may—

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(i) If it is an institutional accrediting agency, be limited in
the number of institutions to which it may grant accreditation
under the expanded scope for a designated period of time; or

(ii) If it is a programmatic accrediting agency, be limited in
the number of programs to which it may grant accreditation under
that expanded scope for a certain period of time;

(iii) Be required to submit a monitoring report regarding
accreditation decisions made under the expanded scope; and

(e) Experience qualifying under this section is not limited to
the accreditation of institutions within a particular geographic
area and may include experience obtained in a national, State or
group of States, or programmatic basis.

(Authority: 20 U.S.C. 1099b)

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§ 602.13 [Reserved] Effect of recognition.
(a)

Recognition under this part does not confer immunity or any

relief from Federal or State antitrust laws. Accrediting
agencies, institutions, and programs remain subject to those
laws notwithstanding recognition or eligibility determinations
made by the Department.

(b)

Recognition under this part does not authorize collective

action among accrediting agencies, institutions, or programs
that would otherwise be subject to oversight under Federal or
State law.

(c)

Recognition under this part does not create a property

interest or entitlement to continued recognition.

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ORGANIZATIONAL AND ADMINISTRATIVE REQUIREMENTS

§ 602.14 Purpose and organization.
(a) The Secretary recognizes only the following four categories
of accrediting agencies:

(1) A State agency that—

(i) Has as a principal purpose the accrediting of institutions,
of higher education, higher education programs or both; and

(ii) Has been listed by the Secretary as a nationally recognized
accrediting agency on or before October 1, 1991.

(2) An accrediting agency that—

(i) Has a voluntary membership of institutions of higher
education;

(ii) Has as a principal purpose the accrediting of institutions
of higher education and that accreditation is used to provide a
link to Federal HEA programs in accordance with § 602.10; and

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(iii) Satisfies the “separate and independent” requirements in
paragraph (b) of this section.

(3) An accrediting agency that—

(i) Has a voluntary membership; and

(ii) Has as its principal purpose the accrediting of
institutions of higher education or programs, and the
accreditation it offers is used to provide a link to non-HEA
Federal programs in accordance with § 602.10.

(4) An accrediting agency that, for purposes of determining
eligibility for title IV , HEA programs—

(i) (A) Has a voluntary membership of individuals participating
in a profession; or

(B) Has as its principal purpose the accrediting of programs
within institutions that are accredited by another nationally
recognized accrediting agency; and

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(ii) Satisfies the “separate and independent” requirements in
paragraph (b) of this section or obtains a waiver of those
requirements under paragraph (d) of this section.

(b) For purposes of this section, “separate and independent”
means that—

(1) The members of the agency's decision-making body, who decide
the accreditation or preaccreditation status of institutions or
programs, establish the agency's accreditation policies, or
both, are not elected or selected by the board or chief
executive officer of any related, associated, or affiliated
trade association, or professional organization, or membership
organization and are not staff of the related, associated, or
affiliated trade association,

or professional organization, or

membership organization;

(2) At least one member of an the agency's decision-making body
is a representative of the public, and at least one-seventh of
the body consists of representatives of the public;

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(3) The agency has established and implemented mandatory
conflict of interest controls for each member of the decisionmaking body including guidelines on avoiding conflicts of
interest in making decisions;

in accordance with § 602.15(e);

(4) The agency's dues are paid and held separately from any dues
paid to any related, associated, or affiliated trade association
or professional organization;

(5) The agency develops and determines its own budget, without
review by or in consultation with any other entity or
organization, including any related, associated or affiliated
trade association or professional organization; and

(6) The authorized representative of the agency submits a signed
statement certifying that it has met the requirements to be
“separate and independent” within each petition for recognition
submitted to the Department, and includes in that statement
information regarding any complaints received during the current
recognition period that are material.

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(c) The Secretary considers that any joint use of personnel,
services, equipment, or facilities by an agency and a related,
associated, or affiliated trade association or membership
organization does not violate the “separate and independent”
requirements in paragraph (b) of this section if—

(1) The agency pays the fair market value for its proportionate
share of the joint use; and

(2) The joint use does not compromise the independence and
confidentiality of the accreditation process.

(d) For purposes of paragraph (a)(4) of this section, the
Secretary may waive the “separate and independent” requirements
in paragraph (b) of this section if the agency demonstrates
that—

(1) The Secretary listed the agency as a nationally recognized
agency on or before October 1, 1991, and has recognized it
continuously since that date;

(2) The related, associated, or affiliated trade association or
membership organization plays no role in making or ratifying
either the accrediting or policy decisions of the agency;
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(3) The agency has sufficient budgetary and administrative
autonomy to carry out its accrediting functions independently;

(4) The agency provides to the related, associated, or
affiliated trade association or membership organization only
information it makes available to the public.
(e) An agency seeking a waiver of the “separate and independent”
requirements under paragraph (d) of this section must apply for
the waiver each time the agency seeks recognition or continued
recognition.

(Authority: 20 U.S.C. 1099b)

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§ 602.15 Administrative and fiscal responsibilities.
The agency must have the administrative and fiscal capability,
including conflict of interest controls, to carry out its
accreditation activities in light of its requested scope of
recognition. The agency meets this requirement if the agency
demonstrates that—

(a) The agency has—

(1) Adequate administrative staff and financial resources to
carry out its accrediting responsibilities;

(2) Competent and knowledgeable individuals, qualified by
education or experience in their own right and trained by the
agency on their responsibilities, as appropriate for their
roles, regarding the agency's standards, policies, and
procedures, to conduct its on-site evaluations, apply or
establish its policies, and make its accrediting and
preaccrediting decisions, including, if applicable to the
agency's scope, their responsibilities regarding distance
education and correspondence courses;
(3) Academic and administrative personnel on its evaluation,
policy, and decision-making bodies, if the agency accredits
institutions;
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(4) Educators, practitioners, and/or employers on its
evaluation, policy, and decision-making bodies, if the agency
accredits programs or single-purpose institutions that prepare
students for a specific profession;

(3) Training provided to all agency representatives and staff
that includes topics related to best practices in various
educational delivery methods, models, and modalities; innovative
or lower-cost educational delivery models that may provide highquality education to students; and avoiding unnecessary costs to
institutions in the accreditation process; and

(45) Representatives of the public on all decision-making
bodies.; and
(6) Clear and effective controls, including guidelines, to
prevent or resolve conflicts of interest, or the appearance of
conflicts of interest, by the agency's—

(i) Board members

(ii) Commissioners;

(iii) Evaluation team members;
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(iv) Consultants;

(v) Administrative staff; and

(vi) Other agency representatives; and

(b) The agency maintains complete and accurate records of—

(1) Its last full accreditation or preaccreditation review of
each institution or program, including on-site evaluation team
reports, the institution's or program's responses to on-site
reports, periodic review reports, any reports of special reviews
conducted by the agency between regular reviews, and a copy of
the institution's or program's most recent self-study if
applicable; and

(2) All decision letters issued by the agency regarding the
accreditation and preaccreditation of any institution or program
and any substantive changes.

(c) The agency conducts its accreditation activities in a manner
that seeks to avoid unnecessary financial, compliance, and
administrative burdens, including by avoiding duplicative
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reporting, excessive documentation requirements, and unwarranted
prescriptive processes.

(d) The agency will cooperate with other agencies and the
Department in the development of common templates and forms for
institutions or programs to submit when seeking to change
accrediting agencies.

(e) The agency has clear and effective controls, including
guidelines, to—

(1)

Prevent or resolve conflicts of interest, or the appearance

of conflicts of interest, by the agency's—

(i) Officers and Directors;

(ii) Employees (including temporary, part-time, and full-time
employees);

(iii) Evaluation team members;

(iv) Consultants and Contractors;

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(v) Volunteers; and

(vi) Other agency representatives.

(2) Ensure that members of the standards-setting body, which may
include members of the decision-making body, do not vote as
members of the decision-making body on the setting of standards
or policies that affect any institution or program that of which
such a member is an officer, director, or employee;

(3) Determine its dues without review by any related,
associated, or affiliated trade association or professional
organization;

(4) Disallow shared resources, such as personnel, services,
equipment, facilities, or information technology, nor have
office space in the same building as any related, associated, or
affiliated trade association or professional organization. The
requirement in this paragraph for separate office space will
take effect one year after the effective date of this section;

(5) Ensure that any officers, directors, employees, or
volunteers of the agency do not share or solicit feedback
regarding the agency’s policies, standards, or decisions with
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respect to any institution or program from any related,
associated, or affiliated trade association or professional
association;

(6)

Prominently disclose on its website all relationships with

related, associated, or affiliated trade associations or
professional organizations; and

(7)(i) Not act to restrict access to employment in a profession,
occupation, or vocation unless the agency provides notice of
clear and convincing evidence to the Secretary that:

(A) the restriction is necessary to protect the public
interest;

(B) the expected public benefits outweigh the costs to the
public from reduced access to the profession, occupation, or
vocation; and

(C) no less restrictive alternative would adequately protect the
public interest.

(ii) For the purposes of this subsection, restricting access to
employment includes:
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(A) taking steps to increase credentialing standards;

(B) increasing the cost or level of required education or
training; or

(C) decreasing the availability of education or training in a
manner that may benefit any related, associated, or affiliated
trade association, professional organization.

(f) The agency’s accreditation standards, policies and
enforcement practices must not restrict public institutions from
fulfilling their obligations under the First Amendment to the
Constitution of the United States. These standards similarly
also must not restrict any private institutions that, through
their institutional policies, guarantee the same or similar
protections for students or faculty, unless the institution has
a religious mission.

(Authority: 20 U.S.C. 1099b)

37

§ 602.16 Accreditation and preaccreditation standards.
(a) The agency must demonstrate that it has standards for
accreditation, and preaccreditation, if offered, that are
sufficiently rigorous to ensure that the agency is a reliable
authority regarding the quality of the education or training
provided by the institutions or programs it accredits. The
agency meets this requirement if the following conditions are
met:

(1) The agency's accreditation standards must set forth clear
expectations establish requirements for the institutions or
programs it accredits in the following areas:

(i) Success with respect to student achievement at the
institutional and program level in relation to the institution's
mission, which may include different standards for different
institutions or programs, as established by the institution,
including, as appropriate, consideration of State licensing
examinations, course completion, and job placement rates, as
described in § 602.17(a)(1).

(ii) Curricula.

(iii) Faculty.
38

(iv) Facilities, equipment, and supplies.

(v) Fiscal and administrative capacity as appropriate to the
specified scale of operations.

(vi) Student support services.

(vii) Recruiting and admissions practices, academic calendars,
catalogs, publications, grading, and advertising.

(viii) Measures of program length and the objectives of the
degrees or credentials offered.

(ix) Record of student complaints received by, or available to,
the agency.

(x) Record of compliance with the institution's program
responsibilities under title IV of the Act, based on the most
recent student loan default rate data provided by the Secretary,
the results of financial or compliance audits, program reviews,
and any other information that the Secretary may provide to the
agency; and

39

(2) The agency's preaccreditation standards, if offered, must-

(i) Be appropriately related to the agency's accreditation
standards; and

(ii) Not permit the institution or program to hold
preaccreditation status for more than five years before a final
accrediting action is made.

(b) Agencies are not required to apply the standards described
in paragraph (a)(1)(x) of this section to institutions that do
not participate in title IV, HEA programs. Under such
circumstance, the agency's grant of accreditation or
preaccreditation must specify that the grant does not include
participation by the institution in title IV, HEA programs.

(c) If the agency only accredits programs and does not serve as
an institutional accrediting agency for any of those programs,
its accreditation standards must address the areas in paragraph
(a)(1) of this section in terms of the type and level of the
program rather than in terms of the institution.

(d)(1) If the agency has or seeks to include within its scope of
recognition the evaluation of the quality of institutions or
40

programs offering distance education, correspondence courses, or
direct assessment education, the agency's standards must
effectively address the quality of an institution's distance
education, correspondence courses, or direct assessment
education in the areas identified in paragraph (a)(1) of this
section.

(2) The agency is not required to have separate standards,
procedures, or policies for the evaluation of distance education
or correspondence courses.

(e) If none of the institutions an agency accredits participates
in any title IV, HEA program, or if the agency only accredits
programs within institutions that are accredited by a nationally
recognized institutional accrediting agency, the agency is not
required to have the accreditation standards described in
paragraphs (a)(1)(viii) and (a)(1)(x) of this section.

(f) An agency that has established and applies the standards in
paragraph (a) of this section may establish any additional
lawful accreditation standards that are consistent with ensuring
institutional or programmatic quality and integrity as it deems
appropriate.

41

(g)Nothing in paragraph (a) of this section restricts—

(1) An accrediting agency from setting, with the involvement of
its members, and applying accreditation standards for or to
institutions or programs that seek review by the agency;

(2) An institution from developing and using institutional
standards to show its success with respect to student
achievement, which achievement may be considered as part of any
accreditation review; or

(3) Agencies from having separate standards regarding an
institution's or a program's process for approving curriculum to
enable programs to more effectively meet the recommendations of—

(i) Industry advisory boards that include employers who hire
program graduates;

(ii) Widely recognized industry standards and organizations;

(iii) Credentialing or other occupational registration or
licensure; or

42

(iv) Employers in a given field or occupation, in making hiring
decisions.

(4) Agencies from having separate faculty standards for
instructors teaching courses within a dual or concurrent
enrollment program, as defined in 20 U.S.C. 7801, or career and
technical education courses, as long as the instructors, in the
agency's judgment, are qualified by education or work experience
for that role.

(Authority: 20 U.S.C. 1099b)

43

§ 602.17 Application of standards in reaching accreditation
decisions.
(a) The agency must have effective mechanisms for evaluating an
institution's or program's compliance with the agency's
standards before reaching a decision to accredit or preaccredit
the institution or program. The agency meets this requirement if
it demonstrates that when reviewing institutions in
accordance with the standards the agency establishes under
602.16, it—

(a1) For the purposes of meeting the standards requirements of
602.16(a)(1)(i), evaluates whether an institution or program —

(1i) Maintains clearly specified educational objectives, which
may include credit for prior learning, that are consistent with
its mission and appropriate in light of the degrees or
certificates awarded that are developed, regularly reviewed, and
updated using reliable data (which may include Federal or state
data) that are consistent with its mission and appropriate in
light of the degrees or certificates awarded;

(2ii) As appropriate to its own standards, reviews an
institution’s student success with respect to

44

student achievement Is successful in achieving its stated
objectives at both the institutional and program levels,
including minimum expectations, by assessing:; and

(A) State licensing or certification examination results, where
applicable to the program of study;

(B) Program retention, completion, or graduation rates,
including as appropriate the extent to which grades meaningfully
reflect student learning and support progression through the
program of study;

(C) Post-completion or graduation outcomes, including employment
and continued education;

(D) Scores on relevant standardized assessments taken for
admission to a higher-level degree, during and after the time of
enrollment at an institution, as available; and

(E) Educational and economic returns aligned to the program’s
credential level, length, and occupational context relative to
the total cost of attendance. Such returns shall be assessed
using the earnings data calculated under 34 CFR 668 Subpart Q,

45

enhanced Unemployment Insurance wage records, or other reliable
earnings data available to the agency.

(3) Maintains requirements that at least conform to commonly
accepted academic standards, or the equivalent, including pilot
programs in § 602.18(b);

(2) When applying its standards according to § 602.16(a)(1)(iii)
on faculty, evaluates whether an institution maintains:

(i) A sufficient number of appropriately qualified faculty and
other subject matter instructors who are regularly evaluated on
the performance of their instructional, research, or service
responsibilities.

(ii) And applies written faculty performance evaluation policies
that include defined performance criteria and are conducted on a
periodic basis;

(iii) Academic freedom protections that are clearly articulated
and applied consistently to faculty regardless of appointment
classification, race or other immutable characteristics,
viewpoint, or ideology, unless the institution has a religious
mission. If an institution has a religious mission, the agency
46

evaluates whether the institution maintains academic freedom
protections that are consistent with the institution's religious
mission and applied consistently to faculty regardless of
appointment classification, race or other immutable
characteristics;

(iv) Sufficient flexibility in instructional staffing policies
and procedures to respond to persistent material changes in
student demand, program viability, or financial conditions;

(v) In the case of public institutions, consistently applies
polices that protect the First Amendment to the Constitution of
the United States. The agency should similarly evaluate any
private institutions that, through their institutional policies,
guarantee the same or similar protections for students or
faculty;

(vi) Policies regarding the integrity of scholarly activity and
research and practices designed to prevent, detect, and address
fabrication, material misrepresentation or falsification,
plagiarism, and other forms of research misconduct as well as
mechanisms for timely investigation, corrective actions, and, as
appropriate, public disclosure;

47

(vii) A policy or policies to protect civil rights and, as
applicable, First Amendment rights, and whether such policy or
policies include:

(A) Academic freedom protections that are clearly articulated
and applied consistently to faculty regardless of appointment
classification, race or other immutable characteristics,
viewpoint, or ideology, unless the institution has a religious
mission. If an institution has a religious mission, the agency
evaluates whether the institution maintains academic freedom
protections that are consistent with the institution's religious
mission and applied consistently to faculty regardless of
appointment classification, race or other immutable
characteristics;

(B) Academic freedom and freedom of inquiry protections for
faculty in teaching, scholarship and research within the subject
matter of a course and research within their academic
discipline, including conditions under which a range of academic
perspectives may be expressed and examined without adverse
action based on lawful viewpoints unrelated to professional or
academic competence, unless the institution has a religious
mission; and

48

(C) In the case of a private institution, policies, that if
established, guarantee the same or similar protections as those
described subsections (i) and (ii) above.

(viii) A policy that is designed to support, promote, and
appropriately prioritize intellectual diversity and the free
exchange of ideas amongst faculty, to include elements that
address intellectual inquiry and student learning, and measures
student and faculty perceptions on the range of viewpoints and
perspectives offered by the institution or program, unless the
institution or program has a religious mission. If an
institution or program has a religious mission, the policy shall
include elements that address intellectual inquiry and student
learning that are consistent with the institution’s religious
mission.

(3) When applying its standards according to § 602.16(a)(1)(iv)
and (vi):

(i) A cost/benefit analysis, which means a review by the agency
of the institution’s budget, resource utilization and
allocation, and if existing, its business/strategic plan,
continuous improvement strategic plan, and review of whether the
institution considers whether the expected benefits of the
49

institution’s activities justify the associated financial,
administrative and opportunity costs, and the impact of capital
expenditures on future operating expenses;

(ii) A review of an institution’s practices and capabilities
regarding the administration of student aid programs; and

(iii) A review of the sufficiency and proper maintenance of the
institution’s facilities and that such facilities comply with
applicable safety standards, laws, and regulations.

(4) When applying its standards according to §
602.16(a)(1)(viii), seeks to ensure that program length is
appropriate to the objectives to the program and credential
awarded at the institution. In applying its standard, the agency
must not categorically prohibit or unreasonably restrict the
accreditation of a:

(i) Short-term program that is designed to prepare students for
employment in recognized occupations eligible for Federal
student aid under applicable law; or

(ii) Certificate or degree program offered for a shorter period
of time than is traditionally required to obtain that
50

credential, so long as the program results in comparable
academic, professional, and employment outcomes for students who
would complete such programs.

(b) When applying and determining an institution’s or program’s
compliance with its standards, the agency must:

(b1) Require the institution or program to engage in a selfstudy process comprehensive process, that may include a selfstudy, that assesses the institution's or program's education
quality and success in meeting its mission and objectives,
highlights opportunities for improvement, and includes a plan
for making those improvements;

(c2) Conduct at least one on-site review of the institution or
program during which it obtains sufficient information to
determine if the institution or program complies with the
agency's standards;

(d3) Allow the institution or program the opportunity to respond
in writing to the report of the on-site review;

(e4) Conduct its own analysis of the self-study comprehensive
process and supporting documentation furnished by the
51

institution or program, the report of the on-site review, the
institution's or program's response to the report, and any other
information substantiated by the agency from other sources to
determine whether the institution or program complies with the
agency's standards;

(f5) Provide the institution or program with a detailed written
report that assesses the institution's or program's compliance
with the agency's standards, including areas needing
improvement, and the institution's or program's performance with
respect to student achievement;

(gc) When applying its standards, an agency Rrequires
institutions to have processes in place through which the
institution establishes that a student who registers in any
course offered via distance education or correspondence is the
same student who academically engages in the course or program;
and

(jd) When applying its standards, an agency seeks to reduce
unnecessary barriers which restrict the ability of institutions
or programs from adopting instructional, programmatic, or
delivery practices that improve student access, accelerate

52

credential or degree completion, or supporting innovative models
of postsecondary education, including program length.

(h) Makes clear in writing that institutions must use processes
that protect student privacy and notify students of any
projected additional student charges associated with the
verification of student identity at the time of registration or
enrollment.

(e) The agency has adopted, implements, and enforces written
policies and procedures that seek to ensure the accuracy,
completeness, and integrity of all representations made by the
agency to:

(1) The Secretary;

(2) The public, including current and prospective students;

(3) State, Tribal, and other governmental authorities; and

(4) Institutions or programs it accredits or preaccredits.

(f) The agency has policies that the agency:

53

(1) Does not knowingly make false, misleading, or materially
incomplete statements regarding:

(i) The accreditation or preaccreditation status of any
institution or program; or

(ii) The scope, conditions, or implications of accreditation or
preaccreditation; and

(iii) Compliance of an institution or program with applicable
Federal or State law.

(2) Maintains procedures for the prompt correction of materially
inaccurate public statements or disclosures;

(3) Maintains procedures for investigating credible allegations
that the agency or its representatives made materially
inaccurate or misleading representations; and

(4) Takes appropriate corrective or disciplinary action when
the agency determines that materially inaccurate or misleading
representations have occurred.

54

(g) The agency may not have standards that encourage, direct, or
otherwise require institutions or programs to violate Federal or
State law, including by having policies that provide any
preferences on the basis of race.

(h) Nothing in this section shall be construed to require any
action that would conflict with applicable Federal or State law.

(Authority: 20 U.S.C. 1099b)

55

§ 602.18 Ensuring consistency in decision-making.
(a) The agency must consistently apply and enforce standards
that respect the stated mission of the institution, including
religious mission, and that ensure that the education or
training offered by an institution or program, including any
offered through distance education, correspondence courses, or
direct assessment education is of sufficient quality to achieve
its stated objective for the duration of any accreditation or
preaccreditation period.

(b) The agency meets the requirement in paragraph (a) of this
section if the agency—

(1) Has written specification of the requirements for
accreditation and preaccreditation that include clear standards
for an institution or program to be accredited or preaccredited;

(2) Has effective controls against the inconsistent application
of the agency's standards;

(3) Bases decisions regarding accreditation and preaccreditation
on the agency's published standards and does not use as a
negative factor the institution's religious mission-based
policies, decisions, and practices in the areas covered by §
56

602.16(a)(1)(ii), (iii), (iv), (vi), and (vii) provided,
however, that the agency may require that the institution's or
program's curricula include all core components required by the
agency;

(4) Has adopted and followed procedures to ensure that agency
decisions are neutral with respect to viewpoint and ideology
that are unrelated to its accrediting policies or standards,
except that nothing in this paragraph requires an accrediting
agency with a religious mission to be neutral with respect to
viewpoints.

(45) Has a reasonable basis for determining that the information
the agency relies on for making accrediting decisions is
accurate; and

(65) Provides the institution or program with a detailed written
report that clearly identifies any deficiencies in the
institution's or program's compliance with the agency's
standards.

(67) Publishes any policies for retroactive application of an
accreditation decision, which must not provide for an effective
date that predates either—
57

(i) An earlier denial by the agency of accreditation or
preaccreditation to the institution or program; or

(ii) The agency's formal approval of the institution or program
for consideration in the agency's accreditation or
preaccreditation process.

(c) This section does not Nothing in this part prohibits an
agency, when special circumstances exist, to include innovative
program delivery approaches or, when an undue hardship on
students occurs, from reducing barriers that limit institutions
and programs from adopting practices that advance credential and
degree completion and that promote new models of education by
applying equivalent written standards, policies, and procedures
that provide alternative means of satisfying one or more of the
requirements set forth in §§ 602.16, 602.17, 602.19, 602.20,
602.22, and 602.24, as compared with written standards,
policies, and procedures the agency ordinarily applies, if—

(1) The alternative standards, policies, and procedures, and the
selection of institutions or programs to which they will be
applied, are approved by the agency's decision-making body and

58

otherwise meet the intent of the agency's expectations and
requirements;

(2) The agency sets and applies equivalent goals and metrics for
assessing the performance of institutions or programs;

(3) The agency's process for establishing and applying the
alternative standards, policies, and procedures is set forth in
its published accreditation manuals; and

(4) The agency requires institutions or programs seeking the
application of alternative standards to demonstrate the need for
an alternative assessment approach, that students will receive
equivalent benefit, and that students will not be harmed through
such application.

(d) Nothing in this part prohibits an agency from permitting the
institution or program to be out of compliance with one or more
of its standards, policies, and procedures adopted in
satisfaction of §§ 602.16, 602.17, 602.19, 602.20, 602.22, and
602.24 for a period of time, as determined by the agency
annually, not to exceed three years unless the agency determines
there is good cause to extend the period of time, and if—

59

(1) The agency and the institution or program can show that the
circumstances requiring the period of noncompliance are beyond
the institution's or program's control, such as—

(i) A natural disaster or other catastrophic event significantly
impacting an institution's or program's operations;

(ii) Accepting students from another institution that is
implementing a teach-out or closing;

(iii) Significant and documented local or national economic
changes, such as an economic recession or closure of a large
local employer;

(iv) Changes relating to State licensure requirements;

(v) The normal application of the agency's standards creates an
undue hardship on students; or

(vi) Instructors who do not meet the agency's typical faculty
standards, but who are otherwise qualified by education or work
experience, to teach courses within a dual or concurrent
enrollment program, as defined in 20 U.S.C. 7801, or career and
technical education courses;
60

(2) The grant of the period of noncompliance is approved by the
agency's decision-making body;

(3) The agency projects that the institution or program has the
resources necessary to achieve compliance with the standard,
policy, or procedure postponed within the time allotted; and

(4) The institution or program demonstrates to the satisfaction
of the agency that the period of noncompliance will not—

(i) Contribute to the cost of the program to the student without
the student's consent;

(ii) Create any undue hardship on, or harm to, students; or
(iii) Compromise the program's academic quality.

(Authority: 20 U.S.C. 1099b)

61

§ 602.19 Monitoring and reevaluation of accredited institutions
and programs.
* * * * *
§ 602.20 Enforcement of standards.
(a) If the agency's review of an institution or program under
any standard indicates that the institution or program is not in
compliance with that standard, the agency must—

(1) Follow its written policy for notifying the institution or
program of the finding of noncompliance;

(2) Provide the institution or program with a written timeline
for coming into compliance that is reasonable, as determined by
the agency's decision-making body, based on the nature of the
finding, the stated mission, and educational objectives of the
institution or program. The timeline may include intermediate
checkpoints on the way to full compliance and must not exceed
the lesser of four years or 150 percent of the—

(i) Length of the program in the case of a programmatic
accrediting agency; or

(ii) Length of the longest program at the institution in the
case of an institutional accrediting agency;
62

(3) Follow its written policies and procedures for granting a
good cause extension that may exceed the standard timeframe
described in paragraph (a)(2) of this section when such an
extension is determined by the agency to be warranted; and

(4) Have a written policy to evaluate and approve or disapprove
monitoring or compliance reports it requires, provide ongoing
monitoring, if warranted, and evaluate an institution's or
program's progress in resolving the finding of noncompliance.

(b) Notwithstanding paragraph (a) of this section, the agency
must have a policy for taking an immediate adverse action, and
take such action, when the agency has determined that such
action is warranted.

(c) If the institution or program does not bring itself into
compliance within the period specified in paragraph (a) of this
section, the agency must take adverse action against the
institution or program, but may maintain the institution's or
program's accreditation or preaccreditation until the
institution or program has had reasonable time to complete the
activities in its teach-out plan or to fulfill the obligations

63

of any teach-out agreement to assist students in transferring or
completing their programs.

(d) An agency that accredits institutions may limit the adverse
or other action to particular programs that are offered by the
institution or to particular additional locations of an
institution, without necessarily taking action against the
entire institution and all of its programs, provided the
noncompliance was limited to that particular program or
location.

(e) All adverse actions taken under this subpart are subject to
the arbitration requirements in 20 U.S.C. 1099b(e). Any agency
arbitration standard or policy must be nonbinding, except that
both parties may agree to binding arbitration after a dispute
arises on a case-by-case basis. If an agency has an arbitration
policy or standard, it must:

(1) Apply to all final adverse actions, however, an agency may
require the institution or program to first exhaust the agency’s
appeal process;

(2) Ensure that the arbitration process is fair and impartial;
and
64

(3)

Provide for a transparent and reasonable period of time for

resolution of disputes.

(f) An agency is not responsible for enforcing requirements in
34 CFR 668.14, 668.15, 668.16, 668.41, or 668.46, but if, in the
course of an agency's work, it identifies instances or potential
instances of noncompliance with any of these requirements, it
must notify the Department.

(g) The Secretary may not require an agency to take action
against an institution or program that does not participate in
any title IV, HEA or other Federal program as a result of a
requirement specified in this part.

(h) The agency must have a policy for restoring accreditation
(including retroactive restoration) in circumstances that the
agency determines are appropriate, including if required by an
applicable judicial decision.

(i) Nothing in this part prohibits an agency from permitting the
institution or program to be out of compliance with one or more
of its standards, policies, and procedures adopted in
satisfaction of §§ 602.16, 602.17, 602.19, 602.22, and 602.24
65

for a period of time, as determined by the agency annually, not
to exceed three years unless the agency determines there is good
cause to extend the period of time and if—

(1) The agency and the institution or program can show that the
circumstances requiring the period of noncompliance are beyond
the institution's or program's control, such as—

(i) A natural disaster or other catastrophic event significantly
impacting an institution's or program's operations;

(ii) Accepting students from another institution that is
implementing a teach-out or closing;

(iii) Significant and documented local or national economic
changes, such as an economic recession or closure of a large
local employer;

(iv) Changes in State licensure requirements;

(v) Instructors who do not meet the agency's typical faculty
standards, but who are otherwise qualified by education or work
experience, to teach courses within a dual or concurrent

66

enrollment program, as defined in 20 U.S.C. 7801, or career and
technical education courses;

(2) The grant of the period of noncompliance is approved by the
agency's decision-making body;

(3) The agency projects that the institution or program has the
resources necessary to achieve compliance with the standard,
policy, or procedure within the time allotted; and

(4) The institution or program demonstrates to the satisfaction
of the agency that the period of noncompliance will not—

(i) Increase the cost of the program to the student without the
student's consent;

(ii) Create any undue hardship on, or harm to, students; or

(iii) Compromise the program's academic quality.

(5) The agency timeline must include the enforcement of
intermediate checkpoints that allow the agency to ensure the
institution will be in full compliance by the end of the
timeline.
67

(6) An extension under this provision can only be granted by the
agency if the special circumstances constitute a new and
independent cause for the non-compliance.

(Authority: 20 U.S.C. 1099b)

68

§ 602.21 Review of standards.
(a) The agency must maintain a comprehensive systematic program
of review that occurs at regular intervals, involves all
relevant constituencies (including students), and that
demonstrates that its standards are adequate to evaluate the
quality of the education or training provided by the
institutions and programs it accredits and relevant to the
educational or training needs of students.

(b) The agency determines the specific procedures it follows in
evaluating its standards, but the agency must ensure that its
program of review—

(1) Is comprehensive;

(2) Occurs at regular, yet reasonable, intervals or on an
ongoing basis;

(3) Examines each of the agency's standards and the standards as
a whole; and

(4) Involves all of the agency's relevant constituencies in the
review and affords them a meaningful opportunity to provide
input into the review.
69

(c) If the agency determines, at any point during its systematic
program of review, that it needs to make changes to its
standards, the agency must initiate action within 12 months to
make the changes and must complete that action within a
reasonable period of time.

(d) Before finalizing any changes to its standards, the agency
must—

(1) Provide notice to all of the agency's relevant
constituencies, and other parties who have made their interest
known to the agency, of the changes the agency proposes to make;

(2) Give the constituencies and other interested parties
adequate opportunity to comment on the proposed changes; and

(3) Take into account and be responsive to any comments on the
proposed changes submitted timely by the relevant constituencies
and other interested parties.

(Authority: 20 U.S.C. 1099b)

70

REQUIRED OPERATING POLICIES AND PROCEDURES

§ 602.22 Substantive changes and other reporting requirements.
(a) (1) If the agency accredits institutions, it must maintain
adequate substantive change policies that ensure that any
substantive change, as defined in this section, after the agency
has accredited or preaccredited the institution does not
adversely affect the capacity of the institution to continue to
meet the agency's standards. The agency meets this requirement
if—

(i) The agency requires the institution to obtain the agency's
approval of a substantive change defined in subparagraph (ii)
before the agency includes the change in the scope of
accreditation or preaccreditation it previously granted to the
institution; and

(ii) The agency's definition of substantive change covers

high-

impact, high-risk changes, including at least the following:

(A) Any substantial change in the established mission or
objectives of the institution or its programs.

71

(B) Any change in the legal status, form of control, or
ownership of the institution that results in a change of
control.

(C) The addition of programs that represent a significant
departure from the existing offerings or educational programs,
or method of delivery, from those that were offered or used when
the agency last evaluated the institution.

(D) The addition of graduate programs by an institution that
previously offered only undergraduate programs or certificates.

(E) A change in the way an institution measures student
progress, including whether the institution measures progress in
clock hours or credit-hours, semesters, trimesters, or quarters,
or uses time-based or non-time-based methods.

(E) (F) A substantial increase in the number of clock hours or
credit hours awarded, or a An increase in the level of
credential awarded for successful completion of one or more
programs.

(G)(F) The acquisition of any other institution or any program
or location of another institution not otherwise reviewed as
72

part of a change of control transaction or the process for the
addition of a location.

(G)(H) The addition of a permanent location at a site at which
the institution is conducting a teach-out for students of
another institution that has ceased operating before all
students have completed their program of study.

(H)(I) The addition of a new location or branch campus, except
as provided in paragraph (c) of this section. The institution
agency's review must include assessment of the institution's
document its fiscal and administrative capability to operate the
location or branch campus, the regular evaluation of locations,
and including verification of the following:

(1) Academic control is clearly identified by the institution.

(2) The institution has adequate faculty, facilities, resources,
and academic and student support systems in place.

(3) The institution is financially stable.

(4) The institution had engaged in long-range appropriate
planning for the addition expansion.
73

(I)(J)

Entering into a written arrangement under 34 CFR 668.5

under which an institution or organization not certified to
participate in the title IV, HEA programs offers more than 25
percent but less than 50 percent of one or more of the
accredited institution's educational programs.

(J)(K) Addition of each direct assessment program.

(K) Addition of the first prison education program at the first
two additional locations and the first additional prison
education program offered by a new method of delivery.

(2) (i) For substantive changes under only paragraph
(a)(1)(ii)(C), (E), (F), (GH), or (JI) of this section, the
agency's decision-making body may designate agency senior staff
to approve or disapprove the request in a timely, fair, and
equitable manner; and

(ii) In the case of a request under paragraph (a)(1)(ii)(I) of
this section, the agency must make a final decision within 90
days of receipt of a materially complete request, unless the
agency or its staff determine significant circumstances related

74

to the substantive change require a review by the agency's
decision-making body to occur within 180 days.

(b) Institutions that have been placed on probation or
equivalent status, have been subject to negative action by the
agency over the prior three academic years, or are under a
provisional certification, as provided in 34 CFR 668.13, must
receive prior approval for the following additional changes (all
other institutions must report these changes within 30 days to
their accrediting agency or as directed by their accrediting
agency):

(1) A change in the way an institution measures student
progress, including whether the institution measures progress in
clock hours or credit-hours, semesters, trimesters, or quarters,
or uses time-based or non-time-based methods.

(2) A substantial increase in the number of clock hours or
credit hours awarded.

(1) A change in an existing program's method of delivery.

75

(2) An aggregate change of 25 percent or more of the clock
hours, credit hours, or content of a program since the agency's
most recent accreditation review.

(3) The development of customized pathways or abbreviated or
modified courses or programs to—

(i) Accommodate and recognize a student's existing knowledge,
such as knowledge attained through employment or military
service; and

(ii) Close competency gaps between demonstrated prior knowledge
or competency and the full requirements of a particular course
or program.

(34) Entering into a written arrangement under 34 CFR 668.5
under which an institution or organization not certified to
participate in the title IV, HEA programs offers up to 25
percent of one or more of the accredited institution's
educational programs.

(c) Institutions that have successfully completed at least one
cycle of accreditation and have received agency approval for the
addition of at least two additional locations as provided in
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paragraph (a)(1)(ii)(H) of this section, and that have not been
placed on probation or equivalent status or been subject to a
negative action by the agency over the prior three academic
years, and that are not under a provisional certification, as
provided in 34 CFR 668.13, need not apply for agency approval of
subsequent additions of locations, and must report these changes
to the accrediting agency within 30 days, if the institution has
met criteria established by the agency indicating sufficient
capacity to add additional locations without individual prior
approvals, including, at a minimum, satisfactory evidence of a
system to ensure quality across a distributed enterprise. that
includes—

(1) Clearly identified academic control;

(2) Regular evaluation of the locations;

(3) Adequate faculty, facilities, resources, and academic and
student support systems;

(4) Financial stability; and

(5) Long-range planning for expansion.

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(d) The agency must have an effective mechanism for conducting,
at reasonable intervals, visits to a representative sample of
additional locations approved under paragraphs (a)(1)(ii)(H) and
(I) of this section.

(de)The agency may determine the procedures it uses to grant
prior approval of the substantive change. However, these
procedures must specify an effective date, on which the change
is included in the program's or institution's grant of
accreditation or preaccreditation. The date of prior approval
must not pre-date either an earlier agency denial of the
substantive change, or the agency's formal acceptance of the
application for the substantive change for inclusion in the
program's or institution's grant of accreditation or
preaccreditation. An agency may designate the date of a change
in ownership as the effective date of its approval of that
substantive change if the accreditation decision is made within
30 days of the change in ownership. Except as provided in
paragraphs (d) and (f) of this section, an agency may require a
visit before granting such an approval.

(f) Except as provided in paragraph (c) of this section, if the
agency's accreditation of an institution enables the institution
to seek eligibility to participate in title IV, HEA programs,
78

the agency's procedures for the approval of an additional
location that is not a branch campus where at least 50 percent
of an educational program is offered must include—

(1) A visit, within six months, to each additional location the
institution establishes, if the institution—

(i) Has a total of three or fewer additional locations;

(ii) Has not demonstrated, to the agency's satisfaction, that
the additional location is meeting all of the agency's standards
that apply to that additional location; or

(iii) Has been placed on warning, probation, or show cause by
the agency or is subject to some limitation by the agency on its
accreditation or preaccreditation status;

(2) A mechanism for conducting, at reasonable intervals, visits
to a representative sample of additional locations of
institutions that operate more than three additional locations;
and

(3) A mechanism, which may, at the agency's discretion, include
visits to additional locations, for ensuring that accredited and
79

preaccredited institutions that experience rapid growth in the
number of additional locations maintain education quality.

(g) The purpose of the visits described in paragraph (f) of this
section is to verify that the additional location has the
personnel, facilities, and resources the institution claimed it
had in its application to the agency for approval of the
additional location.

(eh) The agency's substantive change policy must define when the
changes made or proposed by an institution are or would be
sufficiently extensive to require the agency to conduct a new
comprehensive evaluation of that institution.

(Authority: 20 U.S.C. 1099b)

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§ 602.23 Operating procedures all agencies must have.
(a) The agency must maintain and make available to the public
written materials describing—

(1) Each type of accreditation and preaccreditation it grants;

(2) The procedures that institutions or programs must follow in
applying for accreditation, preaccreditation, or substantive
changes and the sequencing of those steps relative to any
applications or decisions required by States or the Department
relative to the agency's preaccreditation, accreditation, or
substantive change decisions;

(3) The standards and procedures it uses to determine whether to
grant, reaffirm, reinstate, restrict, deny, revoke, terminate,
or take any other action related to each type of accreditation
and preaccreditation that the agency grants;

(4) The institutions and programs that the agency currently
accredits or preaccredits and, for each institution and program,
the year the agency will next review or reconsider it for
accreditation or preaccreditation; and

81

(5) A list of the names, academic and professional
qualifications, and relevant employment and organizational
affiliations of—

(i) The members of the agency's policy and decision-making
bodies; and

(ii) The agency's principal administrative staff.

(b) In providing public notice that an institution or program
subject to its jurisdiction is being considered for
accreditation or preaccreditation, the agency must provide an
opportunity for third-party comment concerning the institution's
or program's qualifications for accreditation or
preaccreditation. At the agency's discretion, third-party
comment may be received either in writing or at a public
hearing, or both.

(c) The accrediting agency must—

(1)

Review in a timely, fair, and equitable manner any

complaint it receives against an accredited or preaccredited
institution or program that is related to the agency's standards
or procedures. The agency may not complete its review and make a
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decision regarding a complaint unless, in accordance with
published procedures, it ensures that the institution or program
has sufficient opportunity to provide a response to the
complaint;

(2) Take follow-up action, as necessary, including enforcement
action, if necessary, based on the results of its review; and

(3) Review in a timely, fair, and equitable manner, and apply
unbiased judgment to, any complaints against itself, to include
conflict of interest violations, and take follow-up action, as
appropriate, based on the results of its review, and document
such complaints and actions.

(d) The agency must require its accredited institutions or
programs to publicly disclose any action by the agency that
begins the enforcement timeline in § 602.20(a) or (b). When If
an institution or program makes such a disclosure or elects to
make a public disclosure of its accreditation or
preaccreditation status, the agency must ensure that the
institution or program discloses that status accurately,
including the specific academic or instructional programs
covered by that status, the reason(s) for the action, and the
name and contact information for the agency.
83

(e) The accrediting agency must provide for the public
correction of incorrect or misleading information an accredited
or preaccredited institution or program releases about—

(1) The accreditation or preaccreditation status of the
institution or program;

(2) The contents of reports of on-site reviews; and

(3) The agency's accrediting or preaccrediting actions with
respect to the institution or program.

(f) (1) If preaccreditation is offered—

(i) The agency's preaccreditation policies must limit the status
to institutions or programs that the agency has determined are
likely to succeed in obtaining accreditation;

(ii) The agency must require all preaccredited institutions to
have a teach-out plan, which must ensure students completing the
teach-out would meet curricular requirements for professional
licensure or certification, if any, and which must include a
list of academic programs offered by the institution and the
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names of other institutions that offer similar programs and that
could potentially enter into a teach-out agreement with the
institution;

(iii) An agency that denies accreditation to an institution it
has preaccredited may maintain the institution's
preaccreditation for currently enrolled students until the
institution has had a reasonable time to complete the activities
in its teach-out plan to assist students in transferring or
completing their programs, but for no more than 120 days unless
approved by the agency for good cause; and

(iv) The agency may not move an accredited institution or
program from accredited to preaccredited status unless,
following the loss of accreditation, the institution or program
applies for initial accreditation and is awarded
preaccreditation status under the new application. Institutions
that participated in the title IV, HEA programs before the loss
of accreditation are subject to the requirements of 34 CFR
600.11(c).

(f)(2) All credits and credentials degrees earned and issued by
an institution or program holding preaccreditation from a

85

nationally recognized agency are considered by the Secretary to
be from an accredited institution or program.

(g) The agency may establish any additional operating procedures
it deems appropriate. At the agency's discretion, these may
include unannounced inspections.

(h) The agency must not have policies that require institutions
or programs to violate any Federal or State law, including Title
VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et seq., and
Title IX of the Education Amendments Act of 1972, 20 U.S.C. 1681
et seq (Title IX), which means among other things, that agencies
must not have policies that require institutions or programs to
provide unlawful preferences to students, faculty, staff,
contractors, or any employees based upon an their race, color,
national origin, or sex, including in admissions, hiring, and
the selection of contracts.

(i) The agency must have internal controls to ensure compliance
with antitrust laws, including by ensuring that the agency does
not directly or indirectly facilitate coordination or collusive
activities that are anticompetitive among institutions or
programs or unnecessarily restrict access to employment in an
occupation.
86

(j) The agency must refrain from reviewing aspects of
institutional governance of public institutions that are
established by State law, including the appointment of
institutional directors or officers by elected or appointed
State officials.

(k) The agency may have a timely procedure to accelerate the
comprehensive accreditation process for an institution or
program seeking initial accreditation. An institution or program
would be eligible to access this process if, at a minimum, it—

(1) Holds current accreditation from another nationally
recognized accrediting agency; and

(2)(i) Meets the requirements of § 600.11; or

(ii) Is impacted by a decision by the senior Department official
or Secretary to terminate an agency’s recognition.

(l) The agency must establish and maintain at least one
structured mechanism through which currently enrolled students,
employed staff, and employed faculty of accredited or
preaccredited institutions or programs may communicate directly
87

with the agency concerns related to the agency’s accreditation
standards or the institution’s or program’s compliance
therewith. Such mechanism(s) must be designed to ensure that
information received is substantive and manageable in volume.
Permissible mechanisms include, but are not limited to, any one
or more of the following:

(1) A registration process through which students, staff, or
faculty may sign up to participate in structured meetings with
agency representatives during scheduled site visits or virtual
visits, subject to reasonable limits on the number of
participants and appointment availability;

(2) Randomized panels of students, staff, or faculty selected by
the accrediting agency or its authorized representatives to
participate in confidential interviews or focus groups during
site visits, conducted in a manner that ensures a representative
cross-section of the institutional community; or

(3) Student, faculty, staff surveys independently administered
by the agency as part of an initial or renewal of accreditation
process which minimally address the standards areas required by
§ 602.16 (a).

88

(Authority: 20 U.S.C. 1099b)

89

§ 602.24 Additional procedures certain institutional agencies
must have.
If the agency is an institutional accrediting agency and its
accreditation or preaccreditation enables those institutions to
obtain eligibility to participate in title IV, HEA programs, the
agency must demonstrate that it has established and uses all of
the following procedures:

(a) Branch campus. The agency must require the institution to
notify the agency if it plans to establish a branch campus and
to submit a business plan for the branch campus that describes—

(1) The educational program to be offered at the branch campus;
and

(2) The projected revenues and expenditures and cash flow at the
branch campus.

(b) Site visits. The agency must undertake a site visit, that
cannot be conducted solely by agency staff, to a new branch
campus or following a change of ownership or control as soon as
practicable, but no later than six months, after the
establishment of that campus or the change of ownership or
control.
90

(c) Teach-out plans and agreements. (1) The agency must require
an institution it accredits to submit a teach-out plan as
defined in 34 CFR 600.2 within 30 days to the agency for
approval upon the occurrence of any of the following events:

(i) For a nonprofit or proprietary institution, the Secretary
notifies the agency of a determination by the institution's
independent auditor expressing doubt about the institution's
ability to operate as a going concern or indicating an adverse
opinion or a finding of material weakness related to financial
stability.

(ii) The agency acts to place the institution on probation or
equivalent status.

(iii) The Secretary notifies the agency that the institution’s
participation in title IV, HEA programs has changed from full to
provisional certification. is participating in title IV, HEA
programs under a provisional program participation agreement and
the Secretary has required a teach-out plan as a condition of
participation.

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(2) The agency must require an institution it accredits or
preaccredits to submit a teach-out plan and, if practicable,
teach-out agreement (as defined in 34 CFR 600.2) to the agency
for approval upon the occurrence of any of the following events:

(i) The Secretary notifies the agency that it has placed the
institution on the reimbursement payment method under 34 CFR
668.162(c) or the heightened cash monitoring payment method
requiring the Secretary's review of the institution's supporting
documentation under 34 CFR 668.162(d)(2).

(ii) The Secretary notifies the agency that the Secretary has
initiated an emergency action against an institution, in
accordance with section 487(c)(1)(G) of the HEA, or an action to
limit, suspend, or terminate an institution participating in any
title IV, HEA program, in accordance with section 487(c)(1)(F)
of the HEA.

(iii) The agency acts to withdraw, terminate, or suspend the
accreditation or preaccreditation of the institution.

(iv) The institution notifies the agency that it intends to
cease operations entirely or close a location that provides one
hundred percent of at least one program, including if the
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location is being moved and is considered by the Secretary to be
a closed school, unless the institution is completing its own
teach-out.

(v) A State licensing or authorizing agency notifies the agency
that an institution's license or legal authorization to provide
an educational program has been or will be revoked.

(3) If an institution is unable to secure a teach-out agreement
within 30 days with another institution as required under
paragraph (c)(2) of this section—

(i) The institution must provide documentation to the agency and
the State detailing why a teach-out agreement cannot be secured;
and

(ii) The institution must notify the Department that a teach-out
agreement cannot be secured and if this is the case, the
Department may require the institution to provide financial
protection.

(34) The agency must evaluate the teach-out plan to ensure it
includes a list of currently enrolled students, academic
programs offered by the institution, a plan to maintain and
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provide access to transcripts in the event of closure, and the
names of other institutions that offer similar programs and that
could potentially enter into a teach-out agreement with the
institution.

(45) If the agency approves a teach-out plan or a teach-out
agreement that includes a program or institution that is
accredited by another recognized accrediting agency, it must
notify that accrediting agency of its approval.

(56) The agency may require an institution it accredits or
preaccredits to enter into a teach-out agreement as part of its
teach-out plan.

(76) The agency must require an closing institution to include
in its teach-out agreement—

(i) A complete list of students currently enrolled in each
program at the institution and the program requirements each
student has completed;

(ii) A plan to provide all potentially eligible students with
information about how to obtain a closed school discharge and,
if applicable, information on State refund policies;
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(iii) A record retention plan to be provided to all enrolled
students that delineates the final disposition of teach-out
records (e.g., student transcripts, billing, financial aid
records);

(iv) Information on the number and types of credits the teachout institution is willing to accept prior to the student's
enrollment; and

(v) A clear statement to students of the tuition and fees of the
educational program and the number and types of credits that
will be accepted by the teach-out institution.

(87) The agency must require an institution it accredits or
preaccredits that enters into a teach-out agreement, either on
its own or at the request of the agency, to submit that teachout agreement for approval. The agency may approve the teach-out
agreement only if the agreement meets the requirements of 34 CFR
600.2 and this section, is consistent with applicable standards
and regulations, and provides for the equitable treatment of
students being served. by ensuring that the teach-out
institution—

95

(i) Has the necessary experience, resources, and support
services to provide an educational program that is of acceptable
quality and reasonably similar in content, delivery modality,
and scheduling to that provided by the institution that is
ceasing operations either entirely or at one of its locations;
however, while an option via an alternate method of delivery may
be made available to students, such an option is not sufficient
unless an option via the same method of delivery as the original
educational program is also provided;

(ii) Has the capacity to carry out its mission and meet all
obligations to existing students; and

(iii) Demonstrates that it—

(A) Can provide students access to the program and services
without requiring them to move or travel for substantial
distances or durations; and

(B) Will provide students with information about additional
charges, if any.

96

(98) Irrespective of any teach-out plan or signed teach-out
agreement, the agency must not permit an institution to serve as
a teach-out institution under the following conditions:

(i) The institution is subject to the conditions in paragraph
(c)(1) or (2) of this section.

(ii) The institution is under investigation, subject to an
action, or being prosecuted for an issue related to academic
quality, misrepresentation, fraud, or other severe matters by a
law enforcement agency.

(109) The agency is permitted to waive requirements regarding
the percentage of credits that must be earned by a student at
the institution awarding the educational credential if the
student is completing his or her program through a written
teach-out agreement or transfer.

(10) The agency must require the institution to provide copies
of all notifications from the institution related to the
institution's closure or to teach-out options to ensure the
information accurately represents students' ability to transfer
credits and may require corrections.

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(d) Closed institution. If an institution the agency accredits
or preaccredits closes without a teach-out plan, the agency must
work with the Department and the appropriate State agency, to
the extent feasible, to assist students in finding reasonable
opportunities to complete their education without additional
charges., including by—

(i) Working with institutions to secure teach-out agreements;

(ii) Where a teach-out agreement cannot be arranged, working
with institutions identified in the teach-out plan to secure
transfer options with those institutions;

(iii) Making teach-out or transfer options, the terms of such
options, and information on obtaining transcripts, loan
discharges, and reimbursement publicly available on the agency’s
website; and

(iv) Sharing such information with appropriate State agencies
and, as applicable, with other recognized accrediting agencies.

(e) Transfer of credit policies. The accrediting agency must
confirm, as part of its review for initial accreditation or
preaccreditation, or renewal of accreditation, that the
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institution has transfer of credit policies which include
provisions that—

(1) Are publicly disclosed in accordance with 34 CFR
668.43(a)(11) and include general policies for specific academic
standards, time limits, and curricular requirements for
acceptance of credits; and

(2) Include a comprehensive statement of all transfer of credit
the criteria established by the institution, which must consider
the comparability and applicability of regarding the transfer of
coursework completed or credit earned at another institution of
higher education. accredited by an agency recognized by the
Secretary;

(3) Do not deny the transfer of credit based on the institution
at which the student completed the coursework or the agency that
accredits that institution, so long as the agency recognized by
the Secretary;

(4)

Award transfer credit for undergraduate programs for

coursework that has been successfully completed at another
institution that is accredited by an agency recognized by the
Secretary and is comparable in content and learning outcomes to
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the institution’s own course offerings, unless the institution
provides a written basis for denial under 34 CFR 668.43(c)(4) in
accordance with its academic standards or curricular
requirements; and

(5)

Provide the student an opportunity to appeal the decision

within 15 calendar days of receipt of the institution’s written
notification if an institution declines to award transfer credit
under paragraph (4).

(f) Agency designations. In its accrediting practice, the agency
must—

(1) Adopt and apply the definitions of “branch campus” and
“additional location” in 34 CFR 600.2;

(2) On the Secretary's request, conform its designations of an
institution's branch campuses and additional locations with the
Secretary's if it learns its designations diverge; and

(3) Ensure that it does not accredit or preaccredit an
institution comprising fewer than all of the programs, branch
campuses, and locations of an institution as certified for title

100

IV participation by the Secretary, except with notice to and
permission from the Secretary.

(Authority: 20 U.S.C. 1099b)

101

§ 602.25 Due process.
The agency must demonstrate that the procedures it uses
throughout the accrediting process satisfy due process. The
agency meets this requirement if the agency does the following:

(a) Provides adequate written specification of its requirements,
including clear standards, for an institution or program to be
accredited or preaccredited.

(b) Uses procedures that afford an institution or program a
reasonable period of time to comply with the agency's requests
for information and documents.

(c) Provides written specification of any deficiencies
identified at the institution or program examined.

(d) Provides sufficient opportunity for a written response by an
institution or program regarding any deficiencies identified by
the agency, to be considered by the agency within a timeframe
determined by the agency, and before any adverse action is
taken.

(e) Notifies the institution or program in writing of any
adverse accrediting action or an action to place the institution
102

or program on probation or show cause. The notice describes the
basis for the action.

(f) Provides an opportunity, upon written request of an
institution or program, for the institution or program to appeal
any adverse action prior to the action becoming final.

(1) The appeal must take place at a hearing before an appeals
panel that—

(i) May not include current members of the agency's decisionmaking body that took the initial adverse action; and

(ii) Is subject to a conflict of interest policy;.

(iii) Does not serve only an advisory or procedural role, and
has and uses the authority to make the following decisions: To
affirm, amend, or remand adverse actions of the original
decision-making body; and

(iv) Affirms, amends, or remands the adverse action. A decision
to affirm or amend the adverse action is implemented by the
appeals panel or by the original decision-making body, at the
agency's option; however, in the event of a decision by the
103

appeals panel to remand the adverse action to the original
decision-making body for further consideration, the appeals
panel must explain the basis for a decision that differs from
that of the original decision-making body and the original
decision-making body in a remand must act in a manner consistent
with the appeals panel's decisions or instructions.

(2) The agency must recognize the right of the institution or
program to employ counsel to represent the institution or
program during its appeal, including to make any presentation
that the agency permits the institution or program to make on
its own during the appeal.

(g) The agency notifies the institution or program in writing of
the result of its appeal and the basis for that result.

(h) (1) The agency must provide for a process, in accordance
with written procedures, through which an institution or program
may, before the agency reaches a final adverse action decision,
seek review of new financial information if all of the following
conditions are met:

(i) The financial information was unavailable to the institution
or program until after the decision subject to appeal was made.
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(ii) The financial information is significant and bears
materially on the financial deficiencies identified by the
agency. The criteria of significance and materiality are
determined by the agency.

(iii) The only remaining deficiency cited by the agency in
support of a final adverse action decision is the institution's
or program's failure to meet an agency standard pertaining to
finances.

(2) An institution or program may seek the review of new
financial information described in paragraph (h)(1) of this
section only once and any determination by the agency made with
respect to that review does not provide a basis for an appeal.

(Authority: 20 U.S.C. 1099b)

105

§ 602.26 Notification of accrediting decisions.
The agency must demonstrate that it has established and follows
written procedures requiring it to provide written notice of its
accrediting decisions to the Secretary, the appropriate State
licensing or authorizing agency, the appropriate accrediting
agencies, and the public. The agency meets this requirement if
the agency, following its written procedures—

(a) Provides written notice of the following types of decisions
to the Secretary, the appropriate State licensing or authorizing
agency, the appropriate accrediting agencies, and the public no
later than 30 days after it makes the decision:

(1) A decision to award initial accreditation or
preaccreditation to an institution or program.

(2) A decision to renew an institution's or program's
accreditation or preaccreditation;

(b) Provides written notice of the decision letter or clear
explanation in writing of the reasons for a final decision of a
probation or equivalent status or an initiated adverse action to
the Secretary, the appropriate State licensing or authorizing
agency, and the appropriate accrediting agencies at the same
106

time it notifies the institution or program of the decision and
requires the institution or program to disclose such an action
within seven business days of receipt to all current and
prospective students;

(c) Provides written notice the decision letter or clear
explanation in writing of the following types of decisions to
the Secretary, the appropriate State licensing or authorizing
agency, and the appropriate accrediting agencies at the same
time it notifies the institution or program of the decision, but
no later than 30 days after it reaches the decision:

(1) A final decision to deny, withdraw, suspend, revoke, or
terminate the accreditation or preaccreditation of an
institution or program.

(2) A final decision to take any other adverse action, as
defined by the agency, not listed in paragraph (c)(1) of this
section;

(d) Provides written notice to the public of For the decisions
listed in paragraphs (b) and (c) of this section, the agency
must update its website directory of accredited institutions or

107

programs to note the decision within one business day of its
notice to the institution or program;

(e) For any decision listed in paragraph (c) of this section,
requires the institution or program to disclose the decision to
current and prospective students within seven business days of
receipt and makes available to the Secretary, the appropriate
State licensing or authorizing agency, and the public, no later
than 60 days after the decision, the agency's decision letter or
clear explanation of a brief statement summarizing the reasons
for the agency's decision and the official comments that the
affected institution or program may wish to make with regard to
that decision, or evidence that the affected institution has
been offered the opportunity to provide official comment;

(f) The agency must maintain on its website a clear record of
all actions taken for each institution or program it accredits
or preaccredits for a period of at least five years, including
in the agency’s decision letter required pursuant to
subparagraphs(b),(c),and(e)above.

(fg) The agency must maintain on its website a clear record of
all actions taken for each institution or program it accredits
or preaccredits for a period of at least five years, including
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in the agency’s decision letter required pursuant to
subparagraphs (b), (c), and (e) above.

(g) Notifies the Secretary, the appropriate State licensing or
authorizing agency, the appropriate accrediting agencies, and,
upon request, the public if an accredited or preaccredited
institution or program—

(1) Decides to withdraw voluntarily from accreditation or
preaccreditation, within 10 business days of receiving
notification from the institution or program that it is
withdrawing voluntarily from accreditation or preaccreditation;
or

(2) Lets its accreditation or preaccreditation lapse, within 10
business days of the date on which accreditation or
preaccreditation lapses.

(hg) If the agency issues a final decision to withdraw, suspend,
revoke, or terminate the accreditation or preaccreditation of
the institution, and the institution challenges this final
decision, the Department may continue to provide access to title
IV, HEA programs to an institution until both arbitration and
judicial review (if applicable) has concluded or until relief is
109

denied, whichever occurs first, if failure to do so would result
in immediate, irreparable harm to the institution. This
provision does not authorize the Department to nullify agency
decisions that are made in a manner consistent with the agency’s
standards, even if the Department disagrees with said decision.

(Authority: 20 U.S.C. 1099b)

110

§ 602.27 Other information an agency must provide the
Department.

(a) The agency must submit to the Department—

(1) A list, updated annually, Regular and timely updates,
occurring throughout the year, of its accredited and
preaccredited institutions and programs on the Department’s
website directory, which may be provided electronically;

(2) A summary of the agency's major accrediting activities
during the previous year (an annual data summary), if requested
by the Secretary to carry out the Secretary's responsibilities
related to this part;

(3) Any proposed change in the agency's policies, procedures, or
accreditation or preaccreditation standards that might alter
its—

(i) Scope of recognition, except as provided in paragraph (a)(4)
of this section; or

(ii) Compliance with the criteria for recognition;

111

(4) Notification that the agency has expanded its scope of
recognition to include distance education or correspondence
courses as provided in section 496(a)(4)(B)(i)(I) of the HEA.
Such an expansion of scope is effective on the date the
Department receives the notification;

(5) The name of any institution or program it accredits that the
agency has reason to believe is failing to meet its title IV,
HEA program responsibilities or is engaged in fraud or abuse,
along with the agency's reasons for concern about the
institution or program; and

(6) If the Secretary requests, information that may bear upon an
accredited or preaccredited institution's compliance with its
title IV, HEA program responsibilities, including the
eligibility of the institution or program to participate in
title IV, HEA programs.

(b) If an agency has a policy regarding notification to an
institution or program of contact with the Department in
accordance with paragraph (a)(5) or (6) of this section, it must
provide for a case-by-case review of the circumstances
surrounding the contact, and the need for the confidentiality of
that contact. When the Department determines a compelling need
112

for confidentiality, the agency must consider that contact
confidential upon specific request of the Department.

(Authority: 20 U.S.C. 1099b)

113

§ 602.28 Regard for decisions of States and other accrediting
agencies.
(a) If the agency is an institutional accrediting agency, it may
not accredit or preaccredit institutions that lack legal
authorization under applicable State law to provide a program of
education beyond the secondary level.

(b) Except as provided in paragraph (c) of this section, the
agency may not grant initial or renewed accreditation or
preaccreditation to an institution, or a program offered by an
institution, if the agency knows, or has reasonable cause to
know, that the institution is the subject of—

(1) A pending or final action brought by a State agency to
suspend, revoke, withdraw, or terminate the institution's legal
authority to provide postsecondary education in the State;

(2) A decision by a recognized agency to deny accreditation or
preaccreditation;

(3) A pending or final action brought by a recognized
accrediting agency to suspend, revoke, withdraw, or terminate
the institution's accreditation or preaccreditation; or

114

(4) Probation or an equivalent status imposed by a recognized
agency.

(c) The agency may grant accreditation or preaccreditation to an
institution or program described in paragraph (b) of this
section only if it provides to the Secretary, within 30 days of
its action, a thorough and reasonable explanation, consistent
with its standards, why the action of the other body does not
preclude the agency's grant of accreditation or
preaccreditation.

(d) If the agency learns that an institution it accredits or
preaccredits, an institution that offers a program it accredits
or preaccredits, or a program it accredits or preaccredits, is
the subject of an adverse action by another recognized
accrediting agency or has been placed on probation or an
equivalent status by another recognized agency, or has been the
subject of a similar action or status by a State agency or
Federal agency, the agency must promptly review its
accreditation or preaccreditation of the institution or program
to determine if it should also take adverse action or place the
institution or program on probation or show cause an equivalent
status.

115

(e) The agency must, upon request, share with other appropriate
recognized accrediting agencies and recognized State approval
agencies information about the accreditation or preaccreditation
status of an institution or program and any adverse actions it
has taken against an accredited or preaccredited institution or
program.

(Authority: 20 U.S.C. 1099b)
* * * * *

116

Subpart C—The Recognition Process
Application and Review by Department Staff
§ 602.30 [Reserved}§ 602.31 Agency applications and reports to
be submitted to the Department.
(a) Applications for recognition or renewal of recognition. An
accrediting agency seeking initial or continued recognition must
submit a written application to the Secretary. Each accrediting
agency must submit an application for continued recognition at
least once every five years, or within a shorter time period
specified in the final recognition decision , and, for an agency
seeking renewal of recognition, 24 months prior to the date on
which the current recognition expires. The application must, to
be submitted concurrently with information required by §
602.32(a) and, if applicable, § 602.32(b), consist of—

(1) A statement of the agency's requested scope of recognition;

(2) Documentation that the agency complies with the criteria for
recognition listed in subpart B of this part, including a copy
of its policies and procedures manual and its accreditation
standards; and

(3) Documentation of how an agency that includes or seeks to
include distance education or correspondence courses in its
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scope of recognition applies its standards in evaluating
programs and institutions it accredits that offer distance
education or correspondence courses.

(b) Applications for expansions or contractions of scope. An
agency seeking an expansion or contraction of scope by
application must submit a written application to the Secretary.
The application must—

(1) Specify the scope requested;

(2) Provide copies of any relevant standards, policies, or
procedures developed and applied by the agency for its use in
accrediting activities conducted within the an expansion of
scope proposed and documentation of the application of these
standards, policies, or procedures; and

(3) Provide the materials required by § 602.32(a).

(c) Compliance or monitoring reports. If an agency is required
to submit a compliance or monitoring report, it must do so
within 30 days following the end of the period for achieving
compliance as specified in the decision of the senior Department
official or Secretary, as applicable.
118

(d) Review following an increase in headcount enrollment. If an
agency that has notified the Secretary in writing of its change
in scope to include distance education or correspondence courses
in accordance with § 602.27(a)(4) reports an increase in
headcount enrollment in accordance with § 602.19(e) for an
institution it accredits, or if the Department notifies the
agency of such an increase at one of the agency's accredited
institutions, the agency must, within 45 days of reporting the
increase or receiving notice of the increase from the
Department, as applicable, submit a report explaining—

(1) How the agency evaluates the capacity of the institutions or
programs it accredits to accommodate significant growth in
enrollment and to maintain education quality;

(2) The specific circumstances regarding the growth at the
institution or program that triggered the review and the results
of any evaluation conducted by the agency; and

(3) Any other information that the agency deems appropriate to
demonstrate the effective application of the criteria for
recognition or that the Department may require.

119

(e) Consent to sharing of information. By submitting an
application for recognition, the agency authorizes Department
staff throughout the application process and during any period
of recognition—

(1) To observe its site visits to one or more of the
institutions or programs it accredits or preaccredits, on an
announced or unannounced basis;

(2) To visit locations where agency activities such as training,
review and evaluation panel meetings, and decision meetings take
place, on an announced or unannounced basis;

(3) To obtain copies of all documents the staff deems necessary
to complete its review of the agency; and

(4) To gain access to agency records, personnel, and facilities.

(f) Public availability of agency records obtained by the
Department.

(1) The Secretary's processing and decision-making on requests
for public disclosure of agency materials reviewed under this
part are governed by the Freedom of Information Act, 5 U.S.C.
120

552; the Trade Secrets Act, 18 U.S.C. 1905; the Privacy Act of
1974, as amended, 5 U.S.C. 552a; the Federal Advisory Committee
Act, 5 U.S.C. Appdx. 1 5 U.S.C. Chapter 10 (Federal Advisory
Committees); and all other applicable laws. In recognition
proceedings, agencies must, before submission to the Department—

(i) Redact the names and any other personally identifiable
information about individual students and any other individuals
who are not agents of the agency or of an institution or program
the agency is reviewing;

(ii) Redact the personal addresses, personal telephone numbers,
personal email addresses, Social Security numbers, and any other
personally identifiable information regarding individuals who
are acting as agents of the agency or of an institution or
program under review;

(iii) Designate, but not redact, all business information within
agency submissions that the agency believes would be exempt from
disclosure under exemption 4 of the Freedom of Information Act
(FOIA), 5 U.S.C. 552(b)(4). A blanket designation of all
information contained within a submission, or of a category of
documents, as meeting this exemption will not be considered a
good faith effort and will be disregarded; and
121

(iv) Ensure documents submitted are only those required for
Department review or as requested by Department officials.

(2) The agency may, but is not required to, redact the
identities of institutions or programs that it believes are not
essential to the Department's review of the agency and may
identify any other material the agency believes would be exempt
from public disclosure under FOIA, the factual basis for the
request, and any legal basis the agency has identified for
withholding the document from public disclosure.

(3) The Secretary processes FOIA requests in accordance with 34
CFR part 5 and makes all documents provided to the Advisory
Committee available to the public.

(4) Upon request by Department staff, the agency must disclose
to Department staff any specific material the agency has
redacted that Department staff believes is needed to conduct the
staff review. Department staff will make any arrangements needed
to ensure that the materials are not made public if prohibited
by law.

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(g) Length of submissions. The Secretary may publish reasonable,
uniform limits on the length of submissions described in this
section.

(Authority: 20 U.S.C. 1099b)

123

§602.31 §602.32 Procedures for submitting applications for
recognition and renewal of recognition, expansion of scope,
compliance reports, and increases in enrollment.

(a) An agency must submit an application for initial or renewal
of recognition and meet the submission deadline set by the
Department. preparing for renewing recognition will submit, 24
months prior to the date on which the current recognition
expires, and in conjunction with the materials required by §
602.31(a), a list of all institutions or programs that the
agency plans to consider for an award of initial or renewed
accreditation over the next year or, if none, over the
succeeding year, as well as any institutions or programs
currently subject to compliance report review or reporting
requirements. An agency that does not anticipate a review of any
institution or program for an initial award of accreditation or
renewed accreditation in the 24 months prior to the date of
recognition expiration may submit a list of institutions or
programs it has reviewed for an initial award of accreditation
or renewal of accreditation at any time since the prior award of
recognition or leading up to the application for an initial
award of recognition. The type of application that must be
submitted, and the scope and priority of the Department’s
review, is determined by the Department as follows:
124

(1) If the total title iv, HEA program funds received by the
institutions accredited by an accrediting agency constitute a
substantial portion, as determined by the Secretary, of the
total funds awarded for the title IV, HEA programs the agency
must submit a comprehensive application that addresses the
agency’s compliance with all criteria in subpart B of this part.

(2) If an institutional accrediting agency is not identified for
review under paragraph (a)(1) of this section, the agency must
submit an application that addresses the agency’s compliance
with §§ 602.15, 602.16, 602.17, 602.19, and 602.20 and any other
criteria as directed by Department staff. The agency must also
attest that, since its last comprehensive review, the agency’s
policies and practices have remained in compliance with all
criteria in subpart B of this part not addressed in its
application.

(3) If an agency or its officers or directors have been the
subject of legal actions, complaints, or other compliance issues
that, individually or in the aggregate, raise substantial
concerns regarding the agency’s compliance with this part, the
agency must submit a comprehensive application that addresses

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the agency’s compliance with all criteria in subpart B of this
part.

(4) If an agency is exclusively a programmatic accrediting
agency and is not identified for review under paragraph (a)(3)
of this section, the agency must submit an application that
addresses the agency’s compliance with the criteria in §§
602.10, 602.16, 602.17, 602.19, and 602.20 and any other
criteria as directed by Department staff. The agency must also
attest that, since its last comprehensive review, the agency’s
policies and practices have remained in compliance with all
criteria in subpart B of this part not addressed in its
application.

(5) An agency described in paragraphs (a)(2) or (a)(4) of this
section must submit a comprehensive application that addresses
the agency’s compliance with all criteria in subpart B of this
part at least once every third cycle of review.

(6) The Department may also consider factors that include, but
are not limited to--

126

(i) Whether any of its accredited institutions closed without an
approved teach-out agreement in place when such an agreement was
required in accordance with § 602.24(c);

(ii) Whether the Department has received serious or a high
proportion of complaints about the institutions or programs the
agency accredits;

(iii) Whether the agency has significantly increased the number
of institutions or programs it accredits; and

(iv) The number and severity of noncompliant findings identified
in the senior Department official’s or Secretary’s decision
letter for the agency’s application for renewal of recognition.

(b) An agency seeking initial recognition must follow the
policies and procedures outlined in paragraph (a) of this
section, but in addition must also submit—

(1) Letters of support for the agency from at least three
accredited institutions or programs, three educators, and, if
appropriate, three employers or practitioners, explaining the
role for such an agency and the reasons for their support; and

127

(2) Letters from at least one program or institution that will
rely on the agency as its link to a Federal program upon
recognition of the agency or intends to seek multiple
accreditation which will allow it in the future to designate the
agency as its Federal link.

(bc) (1) After receipt of an agency’s application for initial or
renewal of recognition, Department staff publishes a notice in
the Federal Register stating that of the agency submittedssion
of an application in the Federal Register and inviting the
public to provide information concerning the performance of
comment on the agency's compliance to assist the Department in
determining whether the agency meets with the criteria for
recognition and establishing a deadline for receipt of
information from the public comment.

(2) Within 10 business days after publication of the notice
described in subparagraph (1), the agency must publish the
request for information on the agency’s website to include
instructions on how the public can submit information in
response to the request.

(cd) The Department staff analyzes the agency's application for
initial or renewal of recognition, to determine whether the
128

agency satisfies the criteria for recognition, taking into
account all available relevant information concerning the
compliance of the agency with those criteria and the agency's
consistency in applying the criteria. The analysis of an
application may include and, after January 1, 2021, will
include—

(1) A site visit, which may be conducted as an in-person visit
at the agency, including an on-site file review of agency
documents, or through a virtual file review of agency
documents. The site visit may also include, as appropriate, an
in-person visit to the agency's member institutions or programs,
an on-site or virtual observation of a meeting of the agency’s
decision-making body, or an on-site or virtual observation of
other agency activity. During the site visit, Department staff
may retain copies of documents needed for inclusion in the
administrative record; (i)Observations from site visits, on an
announced or unannounced basis, to the agency or to a location
where the agency conducts activities such as training, review
and evaluation panel meetings, or decision meetings;

(ii) Observations from site visits, on an announced or
unannounced basis, to one or more of the institutions or
programs the agency accredits or preaccredits;
129

(iii) A file review at the agency of documents, at which time
Department staff may retain copies of documents needed for
inclusion in the administrative record;

(iv2) Review of the public comments and other third-party
information Department staff receives by the established
deadline, the agency's responses to the third-party information
comments, as appropriate, and any other information Department
staff obtains for purposes of evaluating the agency under this
part; and

(v3) Review of complaints or legal actions involving the agency;
and

(24) Review of complaints or legal actions against an
institution or program accredited or preaccredited by the
agency, which may be considered but are not necessarily
determinative of compliance.

(de) The Department may view as a negative factor when
considering an application for initial , or expansion of scope
of, recognition as proposed by an agency among other factors,
any evidence that the agency was part of a concerted effort to
130

unnecessarily restrict the qualifications necessary for a
student to sit for a licensure or certification examination or
otherwise be eligible for entry into a profession
anticompetitive conduct that is violative of the antitrust laws,
such as collusion between accrediting agencies and any related,
associated, or affiliated trade association, professional
organization, standard setting organization, State certification
organization, or membership organization to unnecessarily
inflate the qualifications necessary for a student to sit for a
licensure or certification examination or otherwise be eligible
for entry into a profession, occupation, or vocation due to an
increase in related education or training requirements.

(ef) Department staff's evaluation of an agency may also include
a review of information directly related to institutions or
programs accredited or preaccredited by the agency relative to
their compliance with the agency's standards, the effectiveness
of the standards, and the agency's application of those
standards, but must make all materials relied upon in the
evaluation available to the agency for review and comment.

(fg) If, at any point in its evaluation of an agency seeking
initial recognition, Department staff determines that the agency

131

fails to demonstrate compliance with the basic eligibility
requirements in §§ 602.10 through 602.15, the staff—

(1) Returns the agency's application and provides the agency
with an explanation of the deficiencies that caused staff to
take that action; and

(2) Requires that the agency withdraw its application and
instructs the agency that it may reapply when the agency is able
to demonstrate compliance.

(gh) Except with respect to an application that has been
returned and is withdrawn under paragraph (g) of this section,
when Department staff completes its evaluation of the agency,
the staff may and, after July 1, 2021,

will—

(1) Within 120 days of the submission deadline set by the
Department, Pprepare a written draft analysis of the agency's
application;

(2) Send to the agency the draft analysis including any
identified areas of potential noncompliance and all third-party
information comments and complaints, if applicable, and any

132

other materials the Department received by the established
deadline or is including in its review;

(3) Invite the agency to provide a written response to the draft
analysis and third-party comments or other material included in
the review, specifying a deadline that provides at least 18090
days for the agency's response;

(4) Review the response to the draft analysis the agency
submits, if any, and prepares the written final analysis—

(i) Indicating that the agency is in full compliance,
substantial compliance, or noncompliance with each of the
criteria for recognition; and

(ii) Recommending that the senior Department official approve,
continue recognition with a compliance report-to be submitted to
the Department within 12 months, continue recognition with a
compliance report to be submitted to the Department with a
deadline in excess of 12 months based on a finding of good cause
and extraordinary circumstances, approve with monitoring or
other reporting requirements, or deny, limit, suspend, or
terminate recognition; and

133

(5) Provide to the agency, no later than 30 days before the
Advisory Committee meeting, the final staff analysis and any
other available information provided to the Advisory Committee
under § 602.34(c).

(hi) The agency may request that the Advisory Committee defer
acting on an application at that Advisory Committee meeting if
Department staff fails to provide the agency with the materials
described, and within the timeframes provided, in paragraphs
(g)(3) and (5) of this section. If the Department staff's
failure to send the materials in accordance with the timeframe
described in paragraph (g)(3) or (5) of this section is due to
the agency’s failure to timely submit reports or other
information requested by the Secretary, submit its response to
the draft analysis, or to comply with the requirements of §
602.30(e), the Department will not grant the agency any requests
to defer consideration of its application the failure of the
agency to, by the deadline established by the Secretary, submit
reports to the Department, other information the Secretary
requested, or its response to the draft analysis, the agency
forfeits its right to request a deferral of its application.

An agency seeking an expansion of scope, either as part of the
regular renewal of recognition process or during a period of
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recognition, must submit an application to the Secretary,
separately or as part of the policies and procedures outlined in
paragraph (a) of this section, that satisfies the requirements
of §§ 602.12(b) and 602.31(b) and—

(1) States the reason for the expansion of scope request;

(2) Includes letters from at least three institutions or
programs that would seek accreditation under one or more of the
elements of the expansion of scope; and

(3) Explains how the agency must expand capacity to support the
expansion of scope, if applicable, and, if necessary, how it
will do so and how its budget will support that expansion of
capacity.

(k) The Department may view as a negative factor when
considering an application for initial or expansion of scope of
recognition as proposed by an agency, among other factors, any
evidence that the agency was part of a concerted effort to
unnecessarily restrict the qualifications necessary for a
student to sit for a licensure or certification examination or
otherwise be eligible for entry into a profession.

135

(l) Department staff's evaluation of a compliance report
includes review of public comments solicited by Department staff
in the Federal Register received by the established deadline,
the agency's responses to the third-party comments, as
appropriate, other third-party information Department staff
receives, and additional information described in paragraphs (d)
and (e) of this section, as appropriate.

(m) The Department will process an application for an expansion
of scope, compliance report, or increase in enrollment report in
accordance with paragraphs with paragraphs (c) through (h) of
this section.

(i) If Department staff does not conclude its review of the
application for recognition before the expiration of an agency’s
recognition period, the recognition period automatically extends
for a period of time that expires when a recognition decision is
made and Department staff will limit the length of the
recognition recommendation to not exceed five years from the
expiration.

(Authority: 20 U.S.C. 1099b)

136

§602.32 §602.33 Procedures for review of agencies during the
period of recognition, including the review of monitoring
reports an expansion of scope, a contraction of scope,
compliance reports, or increases in headcount enrollment.

(a) For an expansion or contraction of scope—

(1) The Department will only accept such applications in
conjunction with an application for recognition, except as
provided in paragraph (a)(2) of this section; and

(2) At the discretion of Department staff and on a case-by-case
basis, Department staff may review an application for an
expansion or contraction of scope independent of a renewal
application.

(3) The Department may view as a negative factor, when
considering an expansion or contraction of scope as proposed by
an agency, anticompetitive conduct that is violative of the
antitrust laws, such as collusion between accrediting agencies
and any related, associated, or affiliated trade association,
professional organization, standard setting organization, State
certification organization, or membership organization to
unnecessarily inflate the qualifications necessary for a student
137

to sit for a licensure or certification examination or otherwise
be eligible for entry into a profession, occupation, or vocation
due to an increase in related education or training
requirements.

(b) For the review of a compliance report, Department staff—

(1) Completes its evaluation of the agency’s compliance
report;

(2) Within 90 days

the submission deadline set by the SDO or

Secretary decision letter for the compliance report, prepares a
written draft analysis of the agency's compliance report;

(3) Sends to the agency the draft analysis, including any
identified areas of potential noncompliance and any other
materials the Department received by the established deadline or
that is included in its review;

(4) Invites the agency to provide a written response to the
draft analysis and other material included in the review,
specifying a deadline that provides at least 45 days for the
agency's response;

138

(5) Reviews any response to the draft analysis the agency
submits and prepares the written final analysis—

(i) Indicating that the agency is in full compliance,
substantial compliance, or noncompliance with each of the
criteria for recognition under review; and

(ii) Including a recognition recommendation to the senior
Department official, including, but not limited to, a
recommendation that the senior Department official approve,
continue recognition with compliance reporting requirements
based on a finding of good cause and extraordinary
circumstances, approve with monitoring or other reporting
requirements, or deny, limit, suspend, or terminate recognition;
and

(6) Provides to the agency, no later than 30 days before the
Advisory Committee meeting, the final staff analysis and any
other available information provided to the Advisory Committee
under § 602.34(c).

(c) For the review of a report related to an increase in
headcount enrollment, the agency will provide the report
required by § 602.30(d); and the Department will process the
139

report in accordance with the procedures described in paragraph
(b) of this section for a compliance report.

(Authority: 20 U.S.C. 1099b)

140

§ 602.33 Procedures for review of agencies during the period of
recognition, including the review of monitoring reports.
(a) Department staff may review the compliance of a recognized
agency with the criteria for recognition at any time—

(1) Based on the submission of a monitoring report as directed
by a decision by the senior Department official or Secretary; or

(2) Based on any information that, as determined by Department
staff, appears credible and raises concerns relevant to the
criteria for recognition.

(b) The review may include, but need not be limited to, any of
the activities described in § 602.3231(dc) and (fe).

(c) If the inquiry was initiated under paragraph (a)(2) of this
section, Department staff will provide the agency with
documentation concerning the inquiry and an opportunity to
respond within a reasonable time.

(d) If, in the course of the review, Department staff determine
that the agency is in compliance with the criteria for
recognition, Department will conclude the review and notify the
agency.
141

(ec) If, in the course of the review, and after providing the
agency the documentation concerning the inquiry and consulting
with the agency,

Department staff notes that one or more

deficiencies may exist in the agency's compliance with the
criteria for recognition or in the agency's effective
application of those criteria, Department staff—

(1) Prepares a written draft analysis of the agency's compliance
with the criteria of concern;

(2) Sends to the agency the draft analysis including any
identified areas of noncompliance and all supporting
documentation not previously provided;

(3) Invites the agency to provide a written response to the
draft analysis within 4590 days; and

(4) Reviews any response provided by the agency including any
monitoring report submitted, and either—

(i) Determines the agency is in compliance with the criteria and
Cconcludes the review;

142

(ii) Continues monitoring of the agency's areas of deficiencies;
or

(iii) (A) Notifies the agency, in the event that the agency's
response or monitoring report does not satisfy the staff, that
the draft analysis will be finalized for presentation to the
Advisory Committee;

(B) Publishes a notice in the Federal Register with an
invitation for the public to comment on the agency's compliance
with the criteria in question and establishing a deadline for
receipt of public comment;

(C) Provides the agency with a copy of all public comments
received and invites a written response from the agency;

(BD) Finalizes the staff analysis as necessary to reflect its
review of any agency response and any public comment received;

(CE) Provides to the agency, no later than 30 days before the
Advisory Committee meeting, the final staff analysis and a
recognition recommendation and any other information provided to
the Advisory Committee under § 602.34(c); and

143

(DF) Submits the matter for review by the Advisory Committee in
accordance with § 602.34.

(Authority: 20 U.S.C. 1099b)

144

Review by the National Advisory Committee on Institutional
Quality and Integrity

§ 602.34 Advisory Committee meetings.
(a) Department staff submits a proposed schedule to the
Chairperson of the Advisory Committee based on anticipated
completion of staff analyses.

(b) The Chairperson of the Advisory Committee establishes an
agenda for the next meeting and, in accordance with the Federal
Advisory Committee Act, presents it to the Designated Federal
Official for approval.

(c) Before the Advisory Committee meeting, Department staff
provides the Advisory Committee with—

(1) As applicable, Tthe agency's application for recognition,
renewal of recognition, or the agency’s application for
expansion or contraction of scope when Advisory Committee review
is required, or the agency's compliance report, and supporting
documentation submitted by the agency;

145

(2) The final Department staff analysis of the agency developed
in accordance with §§ 602.31, 602.32, or 602.33, and any
supporting documentation;

(3) The agency's response to the draft analysis;

(4) Any written third-party comments information the Department
received about the agency on or before the established deadline;

(5) Any agency response to third-party comments information; and

(6) Any other information Department staff relied upon in
developing its analysis.

(d) (1) At least 30 days before the Advisory Committee meeting,
the Department publishes a notice of the meeting in the Federal
Register inviting interested parties to make oral presentations
before the Advisory Committee.

(2) Within 10 business days after publication of the notice
described in subparagraph (1), the agency must publish the
meeting notice on the agency’s website to include instructions
on how the public can participate.

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(e) The Advisory Committee considers the materials provided
under paragraph (c) of this section in a public meeting and
invites Department staff, the agency, and other interested
parties to make oral presentations during the meeting. A
transcript is made of all Advisory Committee meetings.

(f) The written motion adopted by the Advisory Committee
regarding each agency's recognition will be made available
during the Advisory Committee meeting. The Department will
provide each agency, upon request, with a copy of the motion on
recognition at the meeting. Each agency that was reviewed will
be sent an electronic copy of the motion relative to that agency
as soon as practicable after the meeting.

(g) After each meeting of the Advisory Committee, the Advisory
Committee forwards to the senior Department official its
recommendation with respect to each agency, which may include,
but is not limited to—

(1) (i) For an agency that is fully compliant, approve initial
or renewed recognition;

(ii) In the case of non-compliance –

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(A) Continue recognition with a required compliance report to be
submitted to the Department within 12 months from the decision
of the senior Department official;

(B)(iii) In conjunction with a finding of exceptional
circumstances and good cause, continue recognition for a
specified period in excess of 12 months pending submission of a
compliance report; or

(C) Deny, limit, suspend, or terminate recognition.

(iii)(iv) In the case of substantial compliance, grant initial
recognition or renewed recognition and recommend a monitoring
report with a set deadline to be reviewed by Department staff to
ensure that corrective action is taken, and full compliance is
achieved or maintained (or recommend for action by staff under §
602.33 if it is not); or

(v) Deny, limit, suspend, or terminate recognition;

(iv)(2) Grant or deny a request for expansion or contraction of
scope; or

(v)(3) Revise or affirm the scope of the agency.
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(Authority: 20 U.S.C. 1099b)

149

§ 602.35 Responding to the Advisory Committee's recommendation.
(a) Within 10 ten business days following the publication of
transcripts of the Advisory Committee meeting, the agency and
Department staff may submit written comments to the senior
Department official on the Advisory Committee's recommendation.
The agency must simultaneously submit a copy of its written
comments, if any, to Department staff. Department staff must
simultaneously submit a copy of its written comments, if any, to
the agency.

(b) Comments must be limited to—

(1) Any Advisory Committee recommendation that the agency or
Department staff believes is not supported by the record;

(2) Any incomplete Advisory Committee recommendation based on
the agency's application; and

(3) The inclusion of any recommendation or draft proposed
decision for the senior Department official's consideration.

(c)(1) Neither the Department staff nor the agency may submit
additional documentation with its comments unless the Advisory
Committee's recognition recommendation proposes finding the
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agency noncompliant with, or ineffective in its application of,
a criterion or criteria for recognition not identified in the
final Department staff analysis provided to the Advisory
Committee.

(2) Within 10 ten business days of receipt by the Department
staff of an agency's comments or new evidence, if applicable, or
of receipt by the agency of the Department staff's comments,
Department staff, the agency, or both, as applicable, may submit
a response to the senior Department official. Simultaneously
with submission, the agency must provide a copy of any response
to the Department staff. Simultaneously with submission,
Department staff must provide a copy of any response to the
agency. No additional comments or new documentation may be
submitted after the responses described in this paragraph are
submitted.

(Authority: 20 U.S.C. 1099b)

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Review and Decision by the Senior Department Official

§ 602.36 Senior Department official's decision.
(a) The senior Department official makes a decision regarding
recognition of an agency based on the record compiled under §§
602.31, 602.32, 602.33, 602.34, and 602.35 including, as
applicable, the following:
* * *
(b) In the event that statutory authority or appropriations for
the Advisory Committee ends, or there are fewer duly appointed
Advisory Committee members than needed to constitute a quorum,
and under extraordinary circumstances when there are serious
concerns about an agency's compliance with subpart B of this
part that require prompt attention, the senior Department
official may make a decision on an application for renewal of
recognition or compliance report on the record compiled under §
602.3132 or § 602.3233 after providing the agency with an
opportunity to respond to the final staff analysis. Any decision
made by the senior Department official under this paragraph from
the Advisory Committee may be appealed to the Secretary as
provided in § 602.37.
* * *
(e) The senior Department official's decision may include, but
is not limited to, approving for recognition; approving with a
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monitoring report; denying, limiting, suspending, or terminating
recognition following the procedures in paragraph (g) of this
section; granting or denying an application for an expansion of
scope; granting or denying an application for a contraction of
scope; revising or affirming the scope of the agency; or
continuing recognition pending submission and review of a
compliance report under §§ 602.32 and 602.34 and review of the
report by the senior Department official under this section.
* * *
(h) If relevant and material information pertaining to an
agency's compliance with recognition criteria, but not contained
in the record, comes to the senior Department official's
attention while a decision regarding the agency's recognition is
pending before the senior Department official, and if the senior
Department official concludes the recognition decision should
not be made without consideration of the information, the senior
Department official either—

(1) (i) Does not make a decision regarding recognition of the
agency; and

(ii) Refers the matter to Department staff for review and
analysis under §§ 602.31, 602.32 or 602.33, as appropriate, and
consideration by the Advisory Committee under § 602.34; or
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(2) (i) Provides the information to the agency and Department
staff;

(ii) Permits the agency to respond to the senior Department
official and the Department staff in writing, and to include
additional documentation relevant to the issue, and specifies a
deadline;

(iii) Provides Department staff with an opportunity to respond
in writing to the agency's submission under paragraph (h)(2)(ii)
of this section, specifying a deadline; and

(iv) Issues a recognition decision based on the record described
in paragraph (a) of this section, as supplemented by the
information provided under this paragraph (h).

(i) No agency may submit information to the senior Department
official, or ask others to submit information on its behalf, for
purposes of invoking paragraph (h) of this section. Before
invoking paragraph (h) of this section, the senior Department
official will take into account whether the information, if
submitted by a third party, could have been submitted in
accordance with §§ 602.31, 602.32 (a), or 602.33(e)(2).
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* * * * *
(Authority: 20 U.S.C. 1099b)

155

Appeal Rights and Procedures

§ 602.37 Appealing the senior Department official's decision to
the Secretary.
* * *
(g) If relevant and material information pertaining to an
agency's compliance with recognition criteria, but not contained
in the record, comes to the Secretary's attention while a
decision regarding the agency's recognition is pending before
the Secretary, and if the Secretary concludes the recognition
decision should not be made without consideration of the
information, the Secretary either—

(1) (i) Does not make a decision regarding recognition of the
agency; and

(ii) Refers the matter to Department staff for review and
analysis under § 602.31, § 602.32, or § 602.33, as appropriate;
review by the Advisory Committee under § 602.34; and
consideration by the senior Department official under § 602.36;
or

(2) (i) Provides the information to the agency and the senior
Department official;
156

(ii) Permits the agency to respond to the Secretary and the
senior Department official in writing, and to include additional
documentation relevant to the issue, and specifies a deadline;

(iii) Provides the senior Department official with an
opportunity to respond in writing to the agency's submission
under paragraph (g)(2)(ii) of this section, specifying a
deadline; and

(iv) Issues a recognition decision based on all the materials
described in paragraphs (e) and (g) of this section.

(h) No agency may submit information to the Secretary, or ask
others to submit information on its behalf, for purposes of
invoking paragraph (g) of this section. Before invoking
paragraph (g) of this section, the Secretary will take into
account whether the information, if submitted by a third party,
could have been submitted in accordance with § 602.31, §
602.32(a), or § 602.33(c).
* * * * *
(Authority: 20 U.S.C. 1099b)
* * * * *

157

Subpart D—Department Responsibilities
* * * * *

158

PART 668—STUDENT ASSISTANCE GENERAL PROVISIONS
Authority: 20 U.S.C. 1001-1003, 1070g, 1085, 1088, 1091, 1092,
1094, 1099c, 1099c-1, 1221e-3, and 1231a, unless otherwise
noted.
* * * * *
Subpart D—Institutional and Financial Assistance Information for
Students
* * * * *
§ 668.43 Institutional and programmatic information.

(a) Institutional information that the institution must make
readily available to enrolled and prospective students under
this subpart includes, but is not limited to—
* * *

(11) A description of the transfer of credit policies
established by the institution, which must include a statement
of the institution's current transfer of credit policies that
includes, at a minimum—

(i) The timeline by which a transcript must be submitted for
timely review so that a prospective student can make an informed
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decision prior to making a nonrefundable financial commitment,
enrollment or registration;

(ii) Any established criteria the institution uses regarding the
transfer of credit earned at another institution and any types
of institutions or sources from which the institution will not
accept credits;

(iii)(ii) A list of institutions with which the institution has
established an articulation agreement;

(iv)(iii) Written criteria used to evaluate and award credit for
prior learning experience including, but not limited to, service
in the armed forces, paid or unpaid employment, or other
demonstrated competency or learning; and

(v) A statement regarding whether the institution considers
credit earned in a non-degree program, or hours completed in a
non-credit program, for transfer or articulation to a degree
program;

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* * *

(c)

(1) If the institution has made a determination under paragraph
(a)(5)(v) of this section that the program's curriculum does not
meet the State educational requirements for licensure or
certification in the State in which a prospective student is
located, or if the institution has not made a determination
regarding whether the program's curriculum meets the State
educational requirements for licensure or certification, the
institution must provide notice to that effect to the student
prior to the student's enrollment in the institution in
accordance with § 668.14(b)(32).

(2) If the institution makes a determination under paragraph
(a)(5)(v) of this section that a program's curriculum does not
meet the State educational requirements for licensure or
certification in a State in which a student who is currently
enrolled in such program is located, the institution must
provide notice to that effect to the student within 14 calendar
days of making such determination.

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(3) If a student timely provides a transcript to an institution
during the period described in paragraph (a)(11)(i) of this
section, the institution must—

(i) Inform the student of the credit that will be awarded for
courses on that transcript;

(ii) Inform the student of the credit that the institution
declines to award for courses on that transcript; and

(iii) Disclose the estimated time and, when applicable, courses
that would be needed to replace the courses for which the
institution declined to award credit under paragraph (ii).

(4) If the institution declines to award credit to a student
pursuant to its transfer of credit policy under 34 CFR
602.24(e)(4), the institution must provide to the student a
written rationale specific to each course that does not result
in transfer credit.

(3)(5) (i) Disclosures under paragraphs (c)(1)-(4) and (2)

of

this section must be made directly to the student in writing,
which may include through email or other electronic
communication.
162

(ii) Disclosures under paragraph (c)(3) of this section must be
provided to the student by the earlier of the date that the
student—

(A) Signs an enrollment agreement;

(B) Completes registration; or

(C) Makes a nonrefundable financial commitment to the
institution.

(ii)(iii)

(A) For purposes of paragraphs (c)(1) and (c)(2) of this
section, an institution must make a determination regarding the
State in which a student is located in accordance with the
institution's policies or procedures, which must be applied
consistently to all students.

* * * * *

163