---
kind: "range"
citation: "34 C.F.R. §§ 600.4–600.7"
title: "34"
from: "600.4"
to: "600.7"
count: 4
url: "https://uscodex.org/cfr/34/600.4..600.7"
---

# §600.4. Institution of higher education.

- (a) **An institution of higher education is a public or other nonprofit educational institution that—**
  - (1) Is in a State, or for purposes of the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Work-Study, and Federal TRIO programs may also be located in the Federated States of Micronesia or the Marshall Islands;
  - (2) **Admits as regular students only persons who—**
    - (i) Have a high school diploma;
    - (ii) Have the recognized equivalent of a high school diploma; or
    - (iii) Are beyond the age of compulsory school attendance in the State in which the institution is physically located;
  - (3) Is legally authorized to provide an educational program beyond secondary education in the State in which the institution is physically located in accordance with [§ 600.9](/cfr/34/600.9.md);
  - (4)
    - (i) **Provides an educational program—**
      - (A) For which it awards an associate, baccalaureate, graduate, or professional degree;
      - (B) That is at least a two-academic-year program acceptable for full credit toward a baccalaureate degree; or
      - (C) That is at least a one academic year training program that leads to a certificate, or other nondegree recognized credential, and prepares students for gainful employment in a recognized occupation; and
    - (ii) May provide a comprehensive transition and postsecondary program, as described in [34 CFR part 668](/cfr/34/part668.md), [subpart O](/cfr/34/subpartO.md); and
  - (5) **Is—**
    - (i) Accredited or preaccredited; or
    - (ii) Approved by a State agency listed in the Federal Register in accordance with [34 CFR part 603](/cfr/34/part603.md), if the institution is a public postsecondary vocational educational institution that seeks to participate only in Federal student assistance programs.
- (b) An institution is physically located in a State if it has a campus or other instructional site in that State.
- (c) The Secretary does not recognize the accreditation or preaccreditation of an institution unless the institution agrees to submit any dispute involving an adverse action, such as the final denial, withdrawal, or termination of accreditation, to arbitration before initiating any other legal action.

# §600.5. Proprietary institution of higher education.

- (a) **A proprietary institution of higher education is an educational institution that—**
  - (1) Is not a public or private nonprofit educational institution;
  - (2) Is in a State;
  - (3) **Admits as regular students only persons who—**
    - (i) Have a high school diploma;
    - (ii) Have the recognized equivalent of a high school diploma; or
    - (iii) Are beyond the age of compulsory school attendance in the State in which the institution is physically located;
  - (4) Is legally authorized to provide an educational program beyond secondary education in the State in which the institution is physically located in accordance with [§ 600.9](/cfr/34/600.9.md);
  - (5)
    - (i)
      - (A) Provides an eligible program of training, as defined in [34 CFR 668.8](/cfr/34/668.8.md), to prepare students for gainful employment in a recognized occupation; or
      - (B) (1) Has provided a program leading to a baccalaureate degree in liberal arts, as defined in [paragraph (e)](#e) of this section, continuously since January 1, 2009; and

        (2) Is accredited by a recognized regional accrediting agency or association, and has continuously held such accreditation since October 1, 2007, or earlier; and

    - (ii) May provide a comprehensive transition and postsecondary program for students with intellectual disabilities, as provided in [34 CFR part 668](/cfr/34/part668.md), [subpart O](/cfr/34/subpartO.md);
  - (6) Is accredited; and
  - (7) **Has been in existence for at least two years.**
- (b)
  - (1) **The Secretary considers an institution to have been in existence for two years only if—**
    - (i) The institution has been legally authorized to provide, and has provided, a continuous educational program to prepare students for gainful employment in a recognized occupation during the 24 months preceding the date of its eligibility application; and
    - (ii) The educational program that the institution provides on the date of its eligibility application is substantially the same in length and subject matter as the program that the institution provided during the 24 months preceding the date of its eligibility application.
  - (2)
    - (i) The Secretary considers an institution to have provided a continuous educational program during the 24 months preceding the date of its eligibility application even if the institution did not provide that program during normal vacation periods, or periods when the institution temporarily closed due to a natural disaster that directly affected the institution or the institution's students.
    - (ii) The Secretary considers an institution to have satisfied the provisions of [paragraph (b)(1)(ii)](#b-1-ii) of this section if the institution substantially changed the subject matter of the educational program it provided during that 24-month period because of new technology or the requirements of other Federal agencies.
  - (3) In determining whether an applicant institution satisfies the requirement contained in [paragraph (b)(1)](#b-1) of this section, the Secretary—
    - (i) Counts any period during which the applicant institution has been certified as a branch campus; and
    - (ii) Except as provided in [paragraph (b)(3)(i)](#b-3-i) of this section, does not count any period during which the applicant institution was a part of another eligible proprietary institution of higher education, postsecondary vocational institution, or vocational school.
- (c) An institution is physically located in a State if it has a campus or other instructional site in that State.
- (d) The Secretary does not recognize the accreditation of an institution unless the institution agrees to submit any dispute involving an adverse action, such as the final denial, withdrawal, or termination of accreditation, to arbitration before initiating any other legal action.
- (e) For purposes of this section, a “program leading to a baccalaureate degree in liberal arts” is a program that is a general instructional program falling within one or more of the following generally accepted instructional categories comprising such programs, but including only instruction in regular programs, and excluding independently designed programs, individualized programs, and unstructured studies:
  - (1) A program that is a structured combination of the arts, biological and physical sciences, social sciences, and humanities, emphasizing breadth of study.
  - (2) **An undifferentiated program that includes instruction in the general arts or general science.**
  - (3) A program that focuses on combined studies and research in humanities subjects as distinguished from the social and physical sciences, emphasizing languages, literature, art, music, philosophy, and religion.
  - (4) Any single instructional program in liberal arts and sciences, general studies, and humanities not listed in [paragraphs (e)(1) through (3)](#e-1..e-3) of this section.

# §600.6. Postsecondary vocational institution.

- (a) **A postsecondary vocational institution is a public or private nonprofit educational institution that—**
  - (1) Is in a State;
  - (2) **Admits as regular students only persons who—**
    - (i) Have a high school diploma;
    - (ii) Have the recognized equivalent of a high school diploma; or
    - (iii) Are beyond the age of compulsory school attendance in the State in which the institution is physically located;
  - (3) Is legally authorized to provide an educational program beyond secondary education in the State in which the institution is physically located in accordance with [§ 600.9](/cfr/34/600.9.md);
  - (4)
    - (i) Provides an eligible program of training, as defined in [34 CFR 668.8](/cfr/34/668.8.md), to prepare students for gainful employment in a recognized occupation; and
    - (ii) May provide a comprehensive transition and postsecondary program for students with intellectual disabilities, as provided in [34 CFR part 668](/cfr/34/part668.md), [subpart O](/cfr/34/subpartO.md);
  - (5) **Is—**
    - (i) Accredited or preaccredited; or
    - (ii) Approved by a State agency listed in the Federal Register in accordance with [34 CFR part 603](/cfr/34/part603.md), if the institution is a public postsecondary vocational educational institution that seeks to participate only in Federal assistance programs; and
  - (6) **Has been in existence for at least two years.**
- (b)
  - (1) **The Secretary considers an institution to have been in existence for two years only if—**
    - (i) The institution has been legally authorized to provide, and has provided, a continuous education or training program to prepare students for gainful employment in a recognized occupation during the 24 months preceding the date of its eligibility application; and
    - (ii) The education or training program it provides on the date of its eligibility application is substantially the same in length and subject matter as the program it provided during the 24 months preceding the date of its eligibility application.
  - (2)
    - (i) The Secretary considers an institution to have provided a continuous education or training program during the 24 months preceding the date of its eligibility application even if the institution did not provide that program during normal vacation periods, or periods when the institution temporarily closed due to a natural disaster that affected the institution or the institution's students.
    - (ii) The Secretary considers an institution to have satisfied the provisions of [paragraph (b)(1)(ii)](#b-1-ii) of this section if the institution substantially changed the subject matter of the educational program it provided during that 24-month period because of new technology or the requirements of other Federal agencies.
  - (3) In determining whether an applicant institution satisfies the requirement contained in [paragraph (b)(1)](#b-1) of this section, the Secretary—
    - (i) Counts any period during which the applicant institution qualified as an eligible institution of higher education;
    - (ii) Counts any period during which the applicant institution was part of another eligible institution of higher education, provided that the applicant institution continues to be part of an eligible institution of higher education;
    - (iii) Counts any period during which the applicant institution has been certified as a branch campus; and
    - (iv) Except as provided in [paragraph (b)(3)(iii)](#b-3-iii) of this section, does not count any period during which the applicant institution was a part of another eligible proprietary institution of higher education or postsecondary vocational institution.
- (c) An institution is physically located in a State or other instructional site if it has a campus or instructional site in that State.
- (d) The Secretary does not recognize the accreditation or preaccreditation of an institution unless the institution agrees to submit any dispute involving an adverse action, such as the final denial, withdrawal, or termination of accreditation, to arbitration before initiating any other legal action.

# §600.7. Conditions of institutional ineligibility.

- (a) **General rule.** For purposes of title IV of the HEA, an educational institution that otherwise satisfies the requirements contained in §§ [600.4](/cfr/34/600.4.md), [600.5](/cfr/34/600.5.md), or [600.6](/cfr/34/600.6.md) nevertheless does not qualify as an eligible institution under this part if—
  - (1) **For its latest complete award year—**
    - (i) More than 50 percent of the institution's courses were correspondence courses as calculated under [paragraph (b)](#b) of this section;
    - (ii) Fifty percent or more of the institution's regular enrolled students were enrolled in correspondence courses;
    - (iii) More than twenty-five percent of the institution's regular enrolled students were incarcerated;
    - (iv) More than fifty percent of its regular enrolled students had neither a high school diploma nor the recognized equivalent of a high school diploma, and the institution does not provide a four-year or two-year educational program for which it awards a bachelor's degree or an associate degree, respectively;
  - (2) The institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management of policies of the institution—
    - (A) Files for relief in bankruptcy, or
    - (B) Has entered against it an order for relief in bankruptcy; or
  - (3) **The institution, its owner, or its chief executive officer—**
    - (i) Has pled guilty to, has pled nolo contendere to, or is found guilty of, a crime involving the acquisition, use, or expenditure of title IV, HEA program funds; or
    - (ii) **Has been judicially determined to have committed fraud involving title IV, HEA program funds.**
- (b) **Special provisions regarding correspondence courses and students—**
  - (1) **Calculating the number of correspondence courses.** For purposes of [paragraphs (a)(1)](#a-1) (i) and (ii) of this section—
    - (i) A correspondence course may be a complete educational program offered by correspondence, or one course provided by correspondence in an on-campus (residential) educational program;
    - (ii) A course must be considered as being offered once during an award year regardless of the number of times it is offered during that year; and
    - (iii) A course that is offered both on campus and by correspondence must be considered two courses for the purpose of determining the total number of courses the institution provided during an award year.
  - (2) **Calculating the number of correspondence students.** For purposes of [paragraph (a)(1)(ii)](#a-1-ii) of this section, a student is considered “enrolled in correspondence courses” if the student's enrollment in correspondence courses constituted more than 50 percent of the courses in which the student enrolled during an award year.
  - (3) **Exceptions.**
    - (i) The provisions contained in [paragraphs (a)(1)](#a-1) (i) and (ii) of this section do not apply to an institution that qualifies as a “technical institute or vocational school used exclusively or principally for the provision of vocational education to individuals who have completed or left high school and who are available for study in preparation for entering the labor market” under [section 3(3)(C)](/cfr/34/3.md?p=3-C) of the Carl D. Perkins Vocational and Applied Technology Education Act of 1995.
    - (ii) The Secretary waives the limitation contained in [paragraph (a)(1)(ii)](#a-1-ii) of this section for an institution that offers a 2-year associate-degree or a 4-year bachelor's-degree program if the students enrolled in the institution's correspondence courses receive no more than 5 percent of the title IV, HEA program funds received by students at that institution.
- (c) **Special provisions regarding confined or incarcerated individuals.**
  - (1)
    - (i) The Secretary may waive the prohibition contained in [paragraph (a)(1)(iii)](#a-1-iii) of this section, upon the application of an institution, if the institution is a nonprofit institution that provides four-year or two-year educational programs for which it awards a bachelor's degree, an associate degree, or a postsecondary diploma and has continuously provided an eligible prison education program approved by the Department under [subpart P](/cfr/34/subpartP.md) of [34 CFR part 668](/cfr/34/part668.md) for at least two years.
    - (ii) The Secretary does not grant the waiver of the prohibition contained in [paragraph (a)(1)(iii)](#a-1-iii) of this section if—
      - (A) For a program described under [paragraph (c)(3)(ii)](#c-3-ii) of this section, the program does not maintain a completion rate of 50 percent or greater; or
      - (B) **For an institution described under paragraph (c)(2) or (3) of this section—** (1) The institution provides one or more eligible prison education programs that is not compliant with the requirements of [34 CFR part 668](/cfr/34/part668.md), [subpart P](/cfr/34/subpartP.md); or

        (2) The institution is not administratively capable under [34 CFR 668.16](/cfr/34/668.16.md) or financially responsible under [34 CFR part 668](/cfr/34/part668.md), subpart L.

  - (2) If the nonprofit institution that applies for a waiver consists solely of four-year or two-year educational programs for which it awards a bachelor's degree, an associate degree, or a postsecondary diploma, the Secretary may waive the prohibition contained in [paragraph (a)(1)(iii)](#a-1-iii) of this section for the entire institution.
  - (3) If the nonprofit institution that applies for a waiver does not consist solely of four-year or two-year educational programs for which it awards a bachelor's degree, an associate degree, or a postsecondary diploma, the Secretary may waive the prohibition contained in [paragraph (a)(1)(iii)](#a-1-iii) of this section on a program-by-program basis—
    - (i) For the four-year and two-year programs for which the institution awards a bachelor's degree, an associate degree, or a postsecondary diploma; and
    - (ii) For the other programs the institution provides, if the confined or incarcerated individuals who are regular students enrolled in those other programs have a completion rate of 50 percent or greater.
  - (4)
    - (i)
      - (A) For five years after the Secretary grants the waiver, no more than 50 percent of the institution's regular enrolled students may be confined or incarcerated individuals; and
      - (B) Following the period described in [paragraph (c)(4)(i)(A)](#c-4-i-A) of this section, no more than 75 percent of the institution's regular enrolled students may be confined or incarcerated individuals.
    - (ii) The limitations in [paragraph (c)(4)(i)](#c-4-i) of this section do not apply if the institution is a public institution chartered for the explicit purpose of educating confined or incarcerated individuals, as determined by the Secretary, and all students enrolled in the institution's prison education program are located in the State where the institution is chartered.
  - (5) The Secretary limits or terminates the waiver described in this section if the Secretary determines the institution no longer meets the requirements established under [paragraph (c)(1)](#c-1) of this section.
  - (6) If the Secretary limits or terminates an institution's waiver under [paragraph (c)](#c) of this section, the institution ceases to be eligible for the title IV, HEA programs at the end of the award year that begins after the Secretary's action unless the institution, by that time—
    - (i) Demonstrates to the satisfaction of the Secretary that it meets the requirements under [paragraph (c)(1)](#c-1) of this section; and
    - (ii) The institution does not enroll any additional confined or incarcerated individuals upon the limitation or termination of the waiver and reduces its enrollment of confined or incarcerated individuals to no more than 25 percent of its regular enrolled students.
- (d) **Special provision for a nonprofit institution if more than 50 percent of its enrollment consists of students who do not have a high school diploma or its equivalent.**
  - (1) Subject to the provisions contained in paragraphs [(d)(2)](#d-2) and [(d)(3)](#d-3) of this section, the Secretary waives the limitation contained in [paragraph (a)(1)(iv)](#a-1-iv) of this section for a nonprofit institution if that institution demonstrates to the Secretary's satisfaction that it exceeds that limitation because it serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a high school diploma or its recognized equivalent.
  - (2) **Number of critical students.** The Secretary grants a waiver under [paragraph (d)(1)](#d-1) of this section only if no more than 40 percent of the institution's enrollment of regular students consists of students who—
    - (i) Do not have a high school diploma or its equivalent; and
    - (ii) **Are not served through contracts described in paragraph (d)(3) of this section.**
  - (3) **Contracts with Federal, State, or local government agencies.** For purposes of granting a waiver under [paragraph (d)(1)](#d-1) of this section, the contracts referred to must be with Federal, State, or local government agencies for the purpose of providing job training to low-income individuals who are in need of that training. An example of such a contract is a job training contract under the Job Training Partnership Act (JPTA).
- (e) **Special provisions.**
  - (1) For purposes of [paragraph (a)(1)](#a-1)of this section, when counting regular students, the institution shall—
    - (i) Count each regular student without regard to the full-time or part-time nature of the student's attendance (i.e., “head count” rather than “full-time equivalent”);
    - (ii) Count a regular student once regardless of the number of times the student enrolls during an award year; and
    - (iii) Determine the number of regular students who enrolled in the institution during the relevant award year by—
      - (A) Calculating the number of regular students who enrolled during that award year; and
      - (B) Excluding from the number of students in [paragraph (e)(1)(iii)(A)](#e-1-iii-A) of this section, the number of regular students who enrolled but subsequently withdrew or were expelled from the institution and were entitled to receive a 100 percent refund of their tuition and fees less any administrative fee that the institution is permitted to keep under its fair and equitable refund policy.
  - (2) For the purpose of calculating a completion rate under [paragraph (c)(3)(ii)](#c-3-ii) of this section, the institution shall—
    - (i) Determine the number of regular incarcerated students who enrolled in the other programs during the last completed award year;
    - (ii) Exclude from the number of regular incarcerated students determined in [paragraph (e)(2)(i)](#e-2-i) of this section, the number of those students who enrolled but subsequently withdrew or were expelled from the institution and were entitled to receive a 100 percent refund of their tuition and fees, less any administrative fee the institution is permitted to keep under the institution's fair and equitable refund policy;
    - (iii) Exclude from the total obtained in [paragraph (e)(2)(ii)](#e-2-ii) of this section, the number of those regular incarcerated students who remained enrolled in the programs at the end of the applicable award year;
    - (iv) From the total obtained in [paragraph (e)(2)(iii)](#e-2-iii) of this section, determine the number of regular incarcerated students who received a degree, certificate, or other recognized educational credential awarded for successfully completing the program during the applicable award year; and
    - (v) Divide the total obtained in [paragraph (e)(2)(iv)](#e-2-iv) of this section by the total obtained in [paragraph (e)(2)(iii)](#e-2-iii) of this section and multiply by 100.
- (f)
  - (1) If the Secretary grants a waiver to an institution under this section, the waiver extends indefinitely provided that the institution satisfies the waiver requirements in each award year.
  - (2) If an institution fails to satisfy the waiver requirements for an award year, the institution becomes ineligible on June 30 of that award year.
- (g)
  - (1) For purposes of [paragraph (a)(1)](#a-1) of this section, and any applicable waiver or exception under this section, the institution shall substantiate the required calculations by having the certified public accountant who prepares its audited financial statement under [34 CFR 668.15](/cfr/34/668.15.md) or its title IV, HEA program compliance audit under [34 CFR 668.23](/cfr/34/668.23.md) report on the accuracy of those determinations.
  - (2) The certified public accountant's report must be based on performing an “attestation engagement” in accordance with the American Institute of Certified Public Accountants (AICPA's) Statement on Standards for Attestation Engagements. The certified public accountant shall include that attestation report with or as part of the audit report referenced in [paragraph (g)(1)](#g-1) of this section.
  - (3) The certified public accountant's attestation report must indicate whether the institution's determinations regarding [paragraph (a)(1)](#a-1) of this section and any relevant waiver or exception under paragraphs [(b)](#b), [(c)](#c), and [(d)](#d) of this section are accurate; i.e., fairly presented in all material respects.
- (h) **Notice to the Secretary.** An institution shall notify the Secretary—
  - (1) By July 31 following the end of an award year if it falls within one of the prohibitions contained in [paragraph (a)(1)](#a-1)of this section, or fails to continue to satisfy a waiver or exception granted under this section; or
  - (2) Within 10 days if it falls within one of the prohibitions contained in paragraphs [(a)(2)](#a-2) or [(a)(3)](#a-3) of this section.
    - (i) **Regaining eligibility.**
  - (1) If an institution loses its eligibility because of one of the prohibitions contained in [paragraph (a)(1)](#a-1) of this section, to regain its eligibility, it must demonstrate—
    - (i) Compliance with all eligibility requirements;
    - (ii) That it did not fall within any of the prohibitions contained in [paragraph (a)(1)](#a-1) of this section for at least one award year; and
    - (iii) That it changed its administrative policies and practices to ensure that it will not fall within any of the prohibitions contained in [paragraph (a)(1)](#a-1) of this section.
  - (2) If an institution loses its eligibility because of one of the prohibitions contained in paragraphs [(a)(2)](#a-2) and [(a)(3)](#a-3) of this section, this loss is permanent. The institution's eligibility cannot be reinstated.