[Congressional Record Volume 149, Number 82 (Thursday, June 5, 2003)]
[Senate]
[Pages S7494-S7495]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ENZI (for himself, Mr. Bingaman and Mr. Campbell):
  S. 1203. A bill to amend the Higher Education Act of 1965 regarding 
distance education, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. ENZI. Mr. President, one of the great benefits of the revolution 
in information technology has been its effect on education. With the 
information superhighway and the number of online research and 
information sources it has made available, modern technology and higher 
education have become inseparable.
  The notion of distance learning and the access it provides to 
students--especially those in rural areas--could use a little more 
support, however, so that is why I am introducing the Distance Learning 
and Online Education Act of 2003.
  This legislation builds on principles already found in the Higher 
Education Act to help reach populations that have traditionally been 
excluded from attending institutions of higher education.
  Wyoming is a very rural State. There is only one four year school in 
the entire State, and there are only seven community colleges. If you 
include the University of Wyoming's satellite campuses, that adds up to 
nine institutions of higher education in an area of nearly one hundred 
thousand square miles. By contrast, there are one hundred twenty nine 
institutions of higher education in the State of Massachusetts, which 
makes up an area roughly one tenth the size of Wyoming. In fact, the 
only State that has fewer institutions of higher education is Alaska.
  Expanding access to higher education for our rural communities has 
been a challenge for many years. Now, the Internet has made it possible 
for prospective students in rural communities, far removed from the 
university campus, to attend college online. They may now spend their 
time studying, rather than commuting back and forth between school.
  At present, the most significant barriers that distance learners and 
online education programs must face are those that were created by the 
Higher Education Act. Under current law, students attending 
institutions that enroll more than half of their students in distance 
programs are ineligible for Federal student financial assistance. As a 
result, many of the communities that this assistance is designed to 
reach have been excluded from sharing in its benefits, including 
students from rural communities, single mothers, working professionals, 
and a range of others who are interested in attending college but who 
cannot afford to do so.
  The legislation that I introduce today corrects this problem by 
creating an avenue for online and distance educators to reach out to 
rural communities and non-traditional students by making them eligible 
for federal student assistance. It creates an eligibility standard for 
these institutions that helps to ensure they will provide high quality 
education programs, while it also protects Federal funding from fraud 
and abuse.
  The Distance Learning and Online Education Act ensures students will 
receive a high quality education by requiring online educators to 
become accredited by an agency that has an appropriate focus on 
distance education. As provided under current law, the accrediting body 
must also be recognized by the Secretary of Education as an agency that 
can determine the institution's eligibility under Title IV of the 
Higher Education Act. This is a slightly higher standard than is 
expected of the brick and mortar institutions that have been entrusted 
with Title IV funding since the Higher Education Act was originally 
passed.
  My bill will also protect against any fraud and abuse of Title VI 
funds by requiring distance educators to demonstrate their financial 
responsibility. In addition to meeting the default rates already 
established in current law, institutions interested in becoming 
eligible must also have a record free from audit findings or program 
review findings resulting in significant penalties for a period of at 
least two years. Distance learning institutions must also show that 
they have not had their participation in Title IV limited, suspended or 
terminated during the previous five years, and they must create a 
system of assurances that the student participating in the program is 
the individual completing the work.
  It is clear that the shape of higher education in this country is 
changing and it will never be the same again. We have an opportunity, 
through technology, to reach student populations that have been 
excluded from participation in higher education because they cannot 
afford to attend or travel to classrooms or campuses located many miles 
from their homes. We can change part of the equation by changing the 
way we view those programs that hold the greatest promise for non-
traditional students. Making them eligible for federal student 
assistance will go a long way toward making a higher education 
available to everyone with

[[Page S7495]]

the interest in learning and the determination to get the job done. The 
Distance Learning and Online Education Act of 2003 will provide a hand 
up--not a hand out--to those whose interest in a higher education is 
limited only by their resources. By offering them a helping hand we can 
eliminate that obstacle and help a new generation achieve their goals 
and live their dreams.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1203

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Distance Education and 
     Online Learning Act of 2003''.

     SEC. 2. STUDENT ELIGIBILITY.

       Section 484(l)(1) of the Higher Education Act of 1965 (20 
     U.S.C. 1091(l)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``in whole or in part'' and inserting 
     ``predominantly'';
       (B) by striking ``of 1 year or longer''; and
       (C) by striking ``unless'' and all that follows through 
     ``all courses at the institution''; and
       (2) by amending subparagraph (B) to read as follows:
       ``(B) Requirement.--An institution of higher education 
     referred to in subparagraph (A) is an institution of higher 
     education that is not an institution or school described in 
     section 3(3)(C) of the Carl D. Perkins Vocational and 
     Technical Education Act of 1998.''.

     SEC. 3. DEFINITION OF ELIGIBLE PROGRAM.

       Section 481(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1088(b)) is amended by adding at the end the 
     following:
       ``(3)(A) A program that is offered predominantly through 
     distance education methods and processes (other than 
     correspondence courses) is an eligible program for purposes 
     of this title if--
       ``(i) the program was reviewed and approved by an 
     accrediting agency or association that--

       ``(I) is recognized by the Secretary under subpart 2 of 
     part H; and
       ``(II) has evaluation of distance education programs within 
     the scope of its recognition; and

       ``(ii) the institution offering the program--
       ``(I) has not had its participation in programs under this 
     title limited, suspended, or terminated within the preceding 
     5 years;
       ``(II) has not had or failed to resolve an audit finding or 
     program review finding under this Act during the preceding 2 
     years that resulted in the institution being required to 
     repay an amount that is greater than 10 percent of the total 
     funds the institution received under the programs authorized 
     by this title for any award year covered by the audit or 
     program review;
       ``(III) has not been found by the Secretary during the 
     preceding 5 years to be in material noncompliance with the 
     provisions of this Act related to the submission of 
     acceptable and timely audit reports required under this 
     title; and
       ``(IV) is determined to be financially responsible under 
     regulations promulgated by the Secretary pursuant to section 
     498(c).
       ``(B) If the accreditation agency or association withdraws 
     approval of the program described in subparagraph (A)(i) or 
     the institution fails to meet any of the requirements 
     described in subparagraph (A)(ii), then the program shall 
     cease to be an eligible program at the end of the award year 
     in which such withdrawal of approval or failure to meet such 
     requirements occurs. The program shall not be an eligible 
     program until the provisions of subparagraph (A) (i) and (ii) 
     are met again.
       ``(4) The Secretary shall promulgate regulations for 
     determining whether a program that offers a degree or 
     certificate on the basis of a competency assessment, that 
     examines the content of the course work provided by the 
     institution of higher education, is an eligible program for 
     purposes of this title.''.

     SEC. 4. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

       Section 496 of the Higher Education Act of 1965 (20 U.S.C. 
     1099b) is amended--
       (1) in subsection (n)(3), by striking the last sentence and 
     inserting the following: ``If the agency or association 
     requests that the evaluation of institutions offering 
     distance education programs be included within its scope of 
     recognition, and demonstrates that the agency or association 
     meets the requirements of subsection (p), then the Secretary 
     shall include the accreditation of institutions offering 
     distance education programs within the agency's or 
     association's scope of recognition.''; and
       (2) by adding at the end the following:
       ``(p) Distance Education Programs.--An agency or 
     association that seeks to evaluate the quality of 
     institutions offering distance education programs within its 
     scope of recognition shall, in addition to meeting the other 
     requirements of this subpart, demonstrate to the Secretary 
     that the agency or association assesses--
       ``(1) measures of student achievement of students enrolled 
     in distance education programs;
       ``(2) the preparation of faculty and students to 
     participate in distance education programs;
       ``(3) the quality of interaction between faculty and 
     students in distance education programs;
       ``(4) the availability of learning resources and support 
     services for students in distance education programs; and
       ``(5) measures to ensure the integrity of student 
     participation in distance education programs.''.
                                 ______