[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR602.24]

[Page 203-204]
 
                           TITLE 34--EDUCATION
 
             CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION,
                         DEPARTMENT OF EDUCATION
 
PART 602--THE SECRETARY'S RECOGNITION OF ACCREDITING AGENCIES--Table of Contents
 
                 Subpart B--The Criteria for Recognition
 
Sec. 602.24  Additional procedures certain institutional accreditors must have.

    If the agency is an institutional accrediting agency and its 
accreditation

[[Page 204]]

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. (1) 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--
    (i) The educational program to be offered at the branch campus;
    (ii) The projected revenues and expenditures and cash flow at the 
branch campus; and
    (iii) The operation, management, and physical resources at the 
branch campus.
    (2) The agency may extend accreditation to the branch campus only 
after it evaluates the business plan and takes whatever other actions it 
deems necessary to determine that the branch campus has sufficient 
educational, financial, operational, management, and physical resources 
to meet the agency's standards.
    (3) The agency must undertake a site visit to the branch campus as 
soon as practicable, but no later than six months after the 
establishment of that campus.
    (b) Change in ownership. The agency must undertake a site visit to 
an institution that has undergone a change of ownership that resulted in 
a change of control as soon as practicable, but no later than six months 
after the change of ownership.
    (c) Teach-out agreements. (1) The agency must require an institution 
it accredits or preaccredits that enters into a teach-out agreement with 
another institution to submit that teach-out agreement to the agency for 
approval.
    (2) The agency may approve the teach-out agreement only if the 
agreement is between institutions that are accredited or preaccredited 
by a nationally recognized accrediting agency, is consistent with 
applicable standards and regulations, and provides for the equitable 
treatment of students by ensuring that--
    (i) The teach-out institution has the necessary experience, 
resources, and support services to provide an educational program that 
is of acceptable quality and reasonably similar in content, structure, 
and scheduling to that provided by the closed institution; and
    (ii) The teach-out institution demonstrates that it can provide 
students access to the program and services without requiring them to 
move or travel substantial distances.
    (3) If an institution the agency accredits or preaccredits closes, 
the agency must work with the Department and the appropriate State 
agency, to the extent feasible, to ensure that students are given 
reasonable opportunities to complete their education without additional 
charge.

(Approved by the Office of Management and Budget under control number 
1845-0003)

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