; (B) is making satisfactory progress toward receipt of a baccalaureate or graduate degree; and (C) has completed at least one year of the program. (2) The term institution of higher education has the meaning given the term in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ). (3) The term recent graduate , with respect to appointment of a person under this section, means a person who was awarded a degree by an institution of higher education not more than two years before the date of the appointment of such person, except that in the case of a person who has completed a period of obligated service in a uniformed service of more than four years, such term means a person who was awarded a degree by an institution of higher education not more than four years before the date of the appointment of such person. . (2) Clerical amendment The table of sections at the beginning of chapter 7 of such title is amended by inserting after the item relating to section 711 the following new item: 718. Student and recent graduate direct hiring into competitive service. . (b) Hiring into excepted service (1) In general Subchapter I of chapter 7 of title 38, United States Code, as amended by subsection (a), is further amended by adding at the end the following new section: 719. Student and recent graduate hiring into excepted service (a) In general The Secretary shall prescribe regulations to allow for excepted service appointments of students and recent graduates leading to conversion to career or career conditional employment of a student or recent graduate of a qualifying educational institution, as defined by the Secretary. (b) Applicability The conversion authority described in subsection (a) shall be applicable to individuals in good standing who— (1) are employed in a qualifying internship or fellowship program at the Department of Veterans Affairs