; and (iii) is organized in such a manner that an institution can determine, based on the method of measurement selected by the institution under subparagraph (A)(i), what constitutes a full-time, three-quarter time, half-time, and less than half-time workload for the purposes of awarding and administering assistance under title IV of this Act, or assistance provided under another provision of Federal law to attend an institution of higher education. (C) Competency defined In this paragraph, the term competency means the knowledge, skill, or ability demonstrated by a student in a subject area. . 4. General provisions relating to student assistance (a) Definitions of academic year and eligible program Section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 ) is amended— (1) in subsection (a), by adding at the end the following: (3) (A) For the purpose of a competency-based education program the term academic year shall be the published measured period established by the institution of higher education that is necessary for a student with a normal full-time workload for the course of study the student is pursuing (as measured using the value of competencies or sets of competencies required by such institution and approved by such institution’s accrediting agency or association) to earn— (i) one-quarter of a bachelor’s degree; (ii) one-half of an associate’s degree; or (iii) with respect to a non-degree or graduate program, the equivalent of a period described in clause (i) or (ii). (B) (i) A competency-based education program that is not a term-based program may be treated as a term-based program for purposes of establishing payment periods for disbursement of loans and grants under this title if— (I) the institution of higher education that offers such program charges a flat subscription fee for access to instruction during a period determined by the institution