DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF TITLE IV PROGRAMS.

SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF TITLE IV PROGRAMS.(a) International Medical Schools and Nursing Schools.—Section 102(a)(2) (20 U.S.C. 1002(a)(2)) is amended—(1) in subparagraph (A)—(A) in the first sentence of the matter preceding clause (i), by inserting “nursing school,” after “graduate medical school,”;(B) in clause (i)—(i) in the matter preceding subclause (I), by inserting “except as provided in subparagraph (B)(iii)(IV),” before “in the case”; and(ii) by striking subclause (II) and inserting the following new subclause:“(II) the institution—“(aa) has or had a clinical training program that was approved by a State as of January 1, 1992; and“(bb) continues to operate a clinical training program in at least one State that is approved by that State;”;(C) in clause (ii), by striking the period at the end and inserting “; or”; and122 STAT. 3084(D) by adding at the end the following:“(iii) in the case of a nursing school located outside of the United States—“(I) the nursing school has an agreement with a hospital, or accredited school of nursing (as such terms are defined in section 801 of the Public Health Service Act (42 U.S.C. 296)), located in the United States that requires the students of the nursing school to complete the students’ clinical training at such hospital or accredited school of nursing;“(II) the nursing school has an agreement with an accredited school of nursing located in the United States providing that the students graduating from the nursing school located outside of the United States also receive a degree from the accredited school of nursing located in the United States;“(III) the nursing school certifies only Federal Stafford Loans under section 428, unsubsidized Federal Stafford Loans under section 428H, or Federal PLUS loans under section 428B for students attending the institution;“(IV) the nursing school reimburses the Secretary for the cost of any loan defaults for current and former students included in the calculation of the institution’s cohort default rate during the previous fiscal year; and“(V) not less than 75 percent of the individuals who were students or graduates of the nursing school, and who took the National Council Licensure Examination for Registered Nurses in the year preceding the year for which the institution is certifying a Federal Stafford Loan under section 428, an unsubsidized Federal Stafford Loan under section 428H, or a Federal PLUS loan under section 428B, received a passing score on such examination.”; and(2) in subparagraph (B), by adding at the end the following:“(iii) Report.—“(I) In general.—Not later than 1 year after the date of enactment of the Higher Education Opportunity Act, the advisory panel described in clause (i) shall submit a report to the Secretary and to the authorizing committees recommending eligibility criteria for participation in the loan programs under part B of title IV for graduate medical schools that—“(aa) are located outside of the United States;“(bb) do not meet the requirements of subparagraph (A)(i); and“(cc) have a clinical training program approved by a State prior to January 1, 2008.“(II) Recommendations.—In the report described in subclause (I), the advisory panel’s eligibility criteria shall include recommendations 122 STAT. 3085 regarding the appropriate levels of performance for graduate medical schools described in such subclause in the following areas:“(aa) Entrance requirements.“(bb) Retention and graduation rates.“(cc) Successful placement of students in United States medical residency programs.“(dd) Passage rate of students on the United States Medical Licensing Examination.“(ee) The extent to which State medical boards have assessed the quality of such school’s program of instruction, including through on-site reviews.“(ff) The extent to which graduates of such schools would be unable to practice medicine in 1 or more States, based on the judgment of a State medical board.“(gg) Any areas recommended by the Comptroller General of the United States under section 1101 of the Higher Education Opportunity Act.“(hh) Any additional areas the Secretary may require.“(III) Minimum eligibility requirement.—In the recommendations described in subclause (II), the criteria described in subparagraph (A)(i)(I)(bb), as amended by section 102(b) of the Higher Education Opportunity Act, shall be a minimum eligibility requirement for a graduate medical school described in subclause (I) to participate in the loan programs under part B of title IV.“(IV) Authority.—The Secretary may—“(aa) not earlier than 180 days after the submission of the report described in subclause (I), issue proposed regulations establishing criteria for the eligibility of graduate medical schools described in such subclause to participate in the loan programs under part B of title IV based on the recommendations of such report; and“(bb) not earlier than one year after the issuance of proposed regulations under item (aa), issue final regulations establishing such criteria for eligibility.”.(b) Percentage Pass Rate.—Section 102(a)(2)(A)(i)(I)(bb) (20 U.S.C. 1002(a)(2)(A)(i)(I)(bb)) is amended by striking “60” and inserting “75”.(c) Conforming Amendment Concerning 90/10 Enforcement.—Section 102(b)(1) (20 U.S.C. 1002(b)(1)) is amended—(1) in subparagraph (D), by adding “and” after the semicolon;(2) in subparagraph (E), by striking “; and” and inserting a period; and(3) by striking subparagraph (F).(d) Additional Institutions.—(1) Amendment.—Section 102 (20 U.S.C. 1002) is further amended—122 STAT. 3086(A) in subsection (b)—(i) by striking paragraph (1)(A) and inserting the following:“(A)(i) provides an eligible program of training to prepare students for gainful employment in a recognized occupation; or“(ii)(I) provides a program leading to a baccalaureate degree in liberal arts, and has provided such a program since January 1, 2009; and“(II) is accredited by a recognized regional accrediting agency or association, and has continuously held such accreditation since October 1, 2007, or earlier;”; and(ii) by striking paragraph (2) and inserting the following:“(2) Additional institutions.—The term ‘proprietary institution of higher education’ also includes a proprietary educational institution in any State that, in lieu of the requirement in section 101(a)(1), admits as regular students individuals—“(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or“(B) who will be dually or concurrently enrolled in the institution and a secondary school.”; and(B) by striking paragraph (2) of subsection (c) and inserting the following:“(2) Additional institutions.—The term ‘postsecondary vocational institution’ also includes an educational institution in any State that, in lieu of the requirement in section 101(a)(1), admits as regular students individuals—“(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or“(B) who will be dually or concurrently enrolled in the institution and a secondary school.”.(2) Rule of construction.—Nothing in the amendment made by paragraph (1)(A)(i) to section 102(b)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)(1)(A)) shall be construed to negate or supercede any State laws governing proprietary institutions of higher education.(e) Effective Date.—The amendments made by subsections (a)(1), (b), and (d) shall take effect on July 1, 2010.