EFFECT OF LOSS OF ACCREDITATION.

SEC. 2007. EFFECT OF LOSS OF ACCREDITATION. (a) Status as Eligible Institution for Stafford Student Loan Program.—Section 435 of the Higher Education Act of 1965 (20 U.S.C. 1085) is amended— (1) in subsection (a)(1), by striking “The term” and inserting “Subject to subsection (n), the term”; and (2) by adding at the end thereof the following: “(n) Impact of Loss of Accreditation.—An institution may not be certified or recertified as an eligible institution under subsection (a) of this section if such institution has— “(1) had its institutional accreditation withdrawn, revoked, or otherwise terminated for cause during the preceding 24 months; or “(2) withdrawn from institutional accreditation voluntarily under a show cause or suspension order during the preceding 24 months; unless— “(A) such accreditation has been restored by the same accrediting agency which had accredited it prior to the withdrawal, revocation, or termination; or “(B) the institution has demonstrated its academic integrity to the satisfaction of the Secretary in accordance with section 1201(a)(5) (A) or (B) of this Act.”. (b) Status as Eligible Institution for Other Title IV Programs.—Section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) is amended— (1) in subsection (a)(1), by striking “For the purpose” and inserting “Subject to subsection (e), for the purpose”; and (2) by adding at the end thereof the following: “(e) Impact of Loss of Accreditation.—An institution may not be certified or recertified as an institution of higher education under subsection (a) of this section if such institution has— 103 STAT. 2121 “(1) had its institutional accreditation withdrawn, revoked, or otherwise terminated for cause during the preceding 24 months; or “(2) withdrawn from institutional accreditation voluntarily under a show cause or suspension order during the preceding 24 months; unless— “(A) such accreditation has been restored by the same accrediting agency which had accredited it prior to the withdrawal, revocation, or termination; or “(B) the institution has demonstrated its academic integrity to the satisfaction of the Secretary in accordance with section 1201(a)(5) (A) or (B) of this Act’. (c) Eligible Institution Accreditation Rule.—Section 481(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a)) is amended by inserting after paragraph (2) the following new paragraph: “(3) Whenever the Secretary determines eligibility under paragraph (1), the Secretary shall not recognize the accreditation of any eligible institution of higher education under this subsection if the institution of higher education is in the process of receiving a new accreditation or changing accrediting agency or association unless the eligible institution submits to the Secretary all materials relating to the prior accreditation, including materials demonstrating reasonable cause for changing the accrediting agency or association.”.