Subsections (b)(5) and (c)(3), referred to in subsec. (i)(1), originally meant subsections (b)(5) and (c)(3) of section 1088 of this title, see 1998 Amendment note below for subsec. (i)(1). Pub. L. 105–244, title I, § 101(c), Oct. 7, 1998, 112 Stat. 1617, amended section 1088 by striking out subsecs. (b) and (c) and redesignating subsecs. (e) and (f) as (b) and (c), respectively. Section 1002 of this title does not contain a subsec. (b)(5) or (c)(3), but provisions similar to those appearing in former subsecs. (b)(5) and (c)(3) of section 1088 are contained in subsecs. (b)(1)(E) and (c)(1)(C) of section 1002.

2009—Subsec. (c)(2). Pub. L. 111–39 substituted “for-profit” for “for profit”.

2008—Subsec. (d)(1)(B). Pub. L. 110–315, § 496(1), inserted “and” after semicolon.

Subsec. (k). Pub. L. 110–315, § 496(2), added subsec. (k).

1998—Subsec. (b)(1). Pub. L. 105–244, § 493(a)(1), substituted “financial responsibility, and administrative capability” for “and capability”.

Subsec. (b)(3). Pub. L. 105–244, § 493(a)(2), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “requires a description of third party servicers of an institution of higher education, together with a copy of any contract with the institution of higher education and a financial aid service provider or loan servicer; and”.

Subsec. (b)(5). Pub. L. 105–244, § 493(a)(3), (4), added par. (5).

Subsec. (c)(2). Pub. L. 105–244, § 493(b)(1)(B), inserted “, public,” after “for profit” in second sentence.

Pub. L. 105–244, § 493(b)(1)(A), which directed amendment of first sentence by substituting “regarding ratios that demonstrate financial responsibility,” for “with respect to operating losses, net worth, asset-to-liabilities ratios, or operating fund deficits”, was executed by making the substitution for text which read “asset-to-liabilities ratios” rather than “asset to liabilities ratios”, to reflect the probable intent of Congress.

Subsec. (c)(3)(A). Pub. L. 105–244, § 493(b)(2), inserted “that the Secretary determines are reasonable” after “Secretary third-party financial guarantees”.

Subsec. (c)(4). Pub. L. 105–244, § 493(b)(3)(A), substituted “criteria” for “ratio of current assets to current liabilities” in introductory provisions.

Subsec. (c)(4)(C). Pub. L. 105–244, § 493(b)(3)(B), substituted “criteria” for “current operating ratio requirement”.

Subsec. (e)(6). Pub. L. 105–244, § 493(c)(1), added par. (6).

Subsec. (f). Pub. L. 105–244, § 493(d), substituted “and site visits” for “; site visits and fees” in heading, “may” for “shall” in second sentence, and “shall establish” for “may establish” and “shall, to the extent practicable, coordinate” for “may coordinate” in third sentence, and struck out at end “The Secretary may charge reasonable fees to cover the expenses of certification and site visits and, to the extent permitted by appropriations Acts, may retain such fees to cover such expenses.”

Subsec. (g). Pub. L. 105–244, § 493(e), amended heading and text of subsec. (g) generally. Prior to amendment, text read as follows:

“(1) The eligibility for the purposes of any program authorized under this subchapter of any institution that is participating in any such program on July 23, 1992, shall expire in accordance with the schedule prescribed by the Secretary in accordance with paragraph (2), but not later than 5 years after July 23, 1992.

“(2) The Secretary shall establish a schedule for the expiration of the eligibility for purposes of any such program of all institutions of higher education within the 5-year period specified in paragraph (1). Such schedule shall place a priority for the expiration of the certification of institutions on those that meet the following criteria:

“(A) institutions subject to review by a State postsecondary review entity pursuant to subpart 1 of this part; or

“(B) other categories of institutions which the Secretary deems necessary.

“(3) After the expiration of the certification of any institution under the schedule prescribed under this subsection, or upon request for initial certification from an institution not previously certified, the Secretary may certify the eligibility for the purposes of any program authorized under this subchapter of each such institution for a period not to exceed 4 years.”

Subsec. (h)(2). Pub. L. 105–244, § 493(f), substituted “the recognition” for “the approval” and “of recognition” for “of approval”.

Subsec. (i)(1). Pub. L. 105–244, § 102(b)(6), substituted “section 1002” for “section 1088”.

Subsec. (i)(4). Pub. L. 105–244, § 493(g), added par. (4).

Subsec. (j)(1). Pub. L. 105–244, § 493(h), inserted “after the branch is certified by the Secretary as a branch campus participating in a program under this subchapter,” after “2 years”.

Pub. L. 105–244, § 102(b)(7)(A), substituted “sections 1002(b)(1)(E) and 1002(c)(1)(C)” for “sections 1088(b)(5) and 1088(c)(3)”.

Subsec. (j)(2). Pub. L. 105–244, § 102(a)(6)(B), (b)(7)(B), amended par. (2) identically, substituting “section 1001(a)(2)” for “section 1141(a)(2)”.

1993—Subsec. (c)(2). Pub. L. 103–208, § 2(i)(9)(A), inserted at end “Such criteria shall take into account any differences in generally accepted accounting principles, and the financial statements required thereunder, that are applicable to for profit and nonprofit institutions. The Secretary shall take into account an institution’s total financial circumstances in making a determination of its ability to meet the standards herein required.”

Subsec. (c)(3). Pub. L. 103–208, § 2(i)(9)(B), substituted “The Secretary shall determine” for “The Secretary may determine” in introductory provisions.

Subsec. (c)(3)(C). Pub. L. 103–208, § 2(i)(9)(C), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “such institution establishes to the satisfaction of the Secretary, with the support of a report of an independent certified public accountant prepared under generally accepted accounting principles, that the institution is a going concern capable of meeting all of its financial obligations, including (but not limited to) refunds of institutional charges and repayments to the Secretary for liabilities and debts incurred in programs administered by the Secretary; or”.

Subsec. (c)(4) to (6). Pub. L. 103–208, § 2(i)(9)(D), (E), added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively.

Subsec. (f). Pub. L. 103–208, § 2(i)(10), inserted after second sentence “The Secretary may establish priorities by which institutions are to receive site visits, and may coordinate such visits with site visits by States, guaranty agencies, and accrediting bodies in order to eliminate duplication, and reduce administrative burden.”

Subsec. (h)(1)(B)(iii). Pub. L. 103–208, § 2(i)(11), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “the Secretary determines that the institution is, in the judgment of the Secretary, in an administrative or financial condition that may jeopardize its ability to perform its responsibilities under its program participation agreement.”

Subsec. (i)(1). Pub. L. 103–208, § 2(i)(12), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “For the purpose of certifying the eligibility of an institution, an eligible institution of higher education that has a change in ownership resulting in a change in control shall not be considered to be the same institution (except as provided in paragraph (3)) and shall be considered a new institution for the purpose of establishing eligibility, except that such institution shall not be required (under section 1088(b)(5) or 1088(c)(3) of this title) to be in existence for 2 years prior to seeking such certification unless such institution was in existence as a branch for less than 2 years.”

Subsec. (i)(3)(A). Pub. L. 103–208, § 2(i)(13), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the death of an owner of an institution, when the owner’s interest is sold or transferred to either a family member or a current stockholder of the corporation; or”.

Subsec. (j)(1). Pub. L. 103–208, § 2(i)(14), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “For the purposes of this subchapter, a branch of an eligible institution, as defined pursuant to regulations of the Secretary, is a separate institution of higher education and shall separately meet all the requirements of this subchapter, except that such institution shall not be required (under section 1088(b)(5) or 1088(c)(3) of this title) to be in existence for 2 years prior to seeking such certification unless such institution was in existence as a branch for less than 2 years.”

Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.

Amendment by sections 102(a)(6)(B), (b)(6), (7) and 493(a), (b), (d)–(h) of Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as a note under section 1001 of this title.

Pub. L. 105–244, title IV, § 493(c)(2), Oct. 7, 1998, 112 Stat. 1762, provided that: “The amendment made by paragraph (1) [amending this section] shall be effective with respect to any unpaid refunds that were first required to be paid to a lender or to the Secretary on or after 90 days after the date of enactment of this Act [Oct. 7, 1998].”

Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title.

Subpart effective Oct. 1, 1992, see section 2 of Pub. L. 102–325, set out as an Effective Date of 1992 Amendment note under section 1001 of this title.