	Overview

Title IV of the Higher Education Act (HEA) authorizes programs that provide student financial aid to support attendance at a variety of institutions of higher education (IHEs). These institutions include public institutions, private non-profit institutions, and private for-profit (proprietary) institutions. In order for students attending a school to receive federal Title IV assistance, the school must:
Be licensed or otherwise legally authorized to provide postsecondary education in the state in which it is located, Be accredited by an agency recognized for that purpose by the Secretary of the U.S. Department of Education (ED), and Be deemed eligible and certified to participate in federal student aid programs by ED. The Higher Education Act Amendments of 1998 ( P.L. Among the key provisions affecting institutional eligibility were:
Modification of the requirement that proprietary institutions of higher education derive at least 15% of their revenues from non-Title IV sources to require proprietary institutions to derive at least 10% of their revenues from non-Title IV sources, Elimination of the requirement for accrediting agencies to conduct unannounced site visits at institutions, Modification of refund policy requirements to apply only to Title IV funds and to require pro-rata refunds for all Title IV recipients who withdraw before the completion of 60% of the payment period or period of enrollment, Establishment of a distance learning demonstration program, and Addition of the requirement that any IHE with a teacher preparation program that has lost state approval or financial support because it has been designated as low-performing by the state is no longer eligible to accept or enroll any students in its teacher preparation program who are receiving Title IV aid. 109-171 ). The latter requirement is commonly referred to as the 90/10 rule. This became known as the "12-hour rule." Issues for Reauthorization

While HERA made changes to the 50% rules and program eligibility requirements, additional issues related to distance education may be discussed during HEA reauthorization.
Title IV of the Higher Education Act (HEA) authorizes programs that provide student financial aid to support attendance at a variety of institutions of higher education (IHEs). These institutions include public institutions, private non-profit institutions, and private for-profit (proprietary) institutions. In order for students attending a school to receive federal Title IV assistance, the school must:
Be licensed or otherwise legally authorized to provide postsecondary education in the state in which it is located, Be accredited by an agency recognized for that purpose by the Secretary of the U.S. Department of Education (ED), and Be deemed eligible and certified to participate in federal student aid programs by ED.
The most recent reauthorization of the Higher Education Act in 1998 resulted in several key changes to provisions affecting institutional eligibility, including:
The requirement that proprietary institutions derive at least 10% of their revenues from non-Title IV sources (also known as the 90/10 rule), Modification of refund policy requirements to apply only to Title IV funds and to require pro-rata refunds for all Title IV recipients who withdraw before the completion of 60% of the payment period or period of enrollment, and Establishment of a distance learning demonstration program.
Since the 1998 reauthorization, Congress has acted through the Higher Education Reconciliation Act (P.L. 109-171) to make additional changes to HEA institutional eligibility requirements, particularly as they relate to program eligibility, distance education, and the return of Title IV funds. ED has also made regulatory changes affecting institutional eligibility—most notably the elimination of the 12-hour rule and clarification of incentive compensation regulations.
As the 110th Congress considers HEA reauthorization, several issues may become a focus of debate. These issues may include, for example, the 90/10 rule, accreditation, institutional outcomes, transfer of credit, and distance education.
This report will be updated as warranted by major legislative action.