[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR602.24]



[Page 206]

 

                           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 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)