The
World Journalism Institute Times Observer reported Friday that private Christian colleges are concerned about new federal regulations that take effect July 1, 2011 that define institutions that qualify to participate in various federal student financial aid programs. Some of the other provisions affecting eligible institutions take effect July 1, 2012. (
Full text of DOE Oct. 2010 Release adopting new rules.) The new 34 CFR Sec. 600.9 that takes effect this July to define when an institution is legally authorized by a state, and thus meets one of the eligibility requirements, provides:
(a)(1) An institution ... is legally authorized by a State if the State has a process to review and appropriately act on complaints concerning the institution... and the institution meets the provisions of paragraphs (a)(1)(i), (a)(1)(ii), or (b) of this section.
(i)(A) The institution is established by name as an educational institution by a State ... and is authorized to operate educational programs beyond secondary education....
(B) The institution complies with any applicable state approval or licensure requirements, except that the state may exempt the institution ... based on the institution’s accreditation ... or based upon the institution being in operation for at least 20 years.
(ii) If an institution is established by a State on the basis of an authorization to conduct business in the State or to operate as a nonprofit charitable organization, but not established by name as an educational institution ...under paragraph (a)(1)(i) of this section, the institution—
(A) By name, must be approved or licensed by the State to offer programs beyond secondary education...; and
(B) May not be exempt from the State’s approval or licensure requirements based on accreditation, years in operation, or other comparable exemption....
(b)(1) Notwithstanding paragraph (a)(1)(i) and (ii) of this section, an institution is considered to be legally authorized to operate educational programs beyond secondary education if it is exempt from State authorization as a religious institution under the State constitution or by State law.
(2) For purposes of paragraph (b)(1) ..., a religious institution is an institution that—
(i) Is owned, controlled, operated, and maintained by a religious organization lawfully operating as a nonprofit religious corporation; and
(ii) Awards only religious degrees or certificates including, but not limited to, a certificate of Talmudic studies, an associate of Biblical studies, a bachelor of religious studies, a master of divinity, or a doctor of divinity.
(c) If an institution is offering postsecondary education through distance or correspondence education to students in a State in which it is not physically located or in which it is otherwise subject to State jurisdiction as determined by the State, the institution must meet any State requirements for it to be legally offering postsecondary distance or correspondence education in that State....
Apparently the provisions requiring destination state approval in order to offer distance learning courses are a particular concern to some Christian colleges. Also of concern to some schools is the definition of "credit hour" in 34 CFR 600.2. It is defined as one hour of classroom instruction and two hours of out-of-class work by students for 15 weeks (with certain exceptions)
