Accreditation agency action

Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b), as amended by sections 5 and 6, is further amended by adding at the end the following: (t) Accreditation agency action (1) In general In order to be recognized by the Secretary as a reliable authority as to the quality of education or training offered by an institution of higher education seeking to participate in the programs authorized under this title, an accrediting agency or association shall agree to take action, as described in paragraph (2), with respect to an institution of higher education subject to its jurisdiction if any of the following occur: (A) Change in ownership of the institution that includes a conversion from proprietary to nonprofit or public control. (B) Rapid change in size of student population at the institution, as defined by the Secretary in regulations promulgated under this section. (C) Any notification by the Secretary to the agency or association of poor financial health, including— (i) a lowering in the credit rating provided to the institution by a credit rating agency (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))); and (ii) any other indicator of financial weakness as defined by the Secretary, which may include heightened cash monitoring or the requirement to post a letter of credit. (D) Any other event determined by the Secretary. (E) Any other event determined by the accrediting agency or association. (2) Actions The actions that may be taken by an accrediting agency or association under this paragraph are the following: (A) An enhanced accreditation review. (B) Formal accrediting action taken by the agency or association, such as a compliance assessment or the imposition of formal conditions on accreditation that may occur separate from the standard accreditation reviews. (C) A formal request for additional information. (D) A recommendation that the institution carefully monitor and report to the accrediting agency or association factors relating to the event described in paragraph (1), or put into place appropriate controls or improvement strategies relating to such event. (E) Other actions determined appropriate by the accrediting agency or association..