Advancing Competency-Based Education Demonstration Project Act of 2014 2014-06-23 Introduced in Senate Advancing Competency-Based Education Demonstration Project Act of 2014 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to direct the Secretary of Education to select up to 15 institutions of higher education (IHEs), systems of IHEs, or consortia of IHEs to participate in a competency-based education demonstration project that provides participants with the ability to offer competency-based education that does not meet certain statutory and regulatory requirements that would otherwise prevent them from participating in federal student aid programs.

Defines "competency-based education" as an educational process that is characterized by the direct measurement of student learning instead of, or in addition to, measuring students' credit or clock hours.

Deems IHEs to be eligible to participate in the project if they are eligible to participate in title IV programs and are not proprietary or foreign IHEs.

Requires project applicants to provide the Secretary with a description of the statutory and regulatory requirements they would like waived and the reasons for seeking each waiver.

Directs the Secretary, through the Director of the Institute of Education Sciences, to: (1) develop performance measures to be used by project participants in gauging their progress, (2) evaluate the implementation and impact of project activities, and (3) identify promising competency-based education practices and disseminate research on such practices.

Requires the Secretary to conduct an annual evaluation of the competency-based education program offered by each demonstration project participant.

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