FOREIGN SCHOOL ELIGIBILITY CRITERIA MAY 2010

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1 Statutry Authrity As prvided under sectin 498 f the Higher Educatin Act f 1965, as amended (Title IV, HEA prgrams), the Secretary determines whether freign institutins chsing t participate r participating in the Title IV, HEA prgrams meet r cntinue t meet the institutinal eligibility and administrative capability requirements fr participatin in the Title IV, HEA prgrams. Federal regulatins currently define a freign institutin as an institutin that is nt lcated in a State. Participatin in the U.S. Department f Educatin s (the Department s) federal student aid prgrams permits eligible students frm the United States (U.S.) t brrw federal student aid t help pay their educatin expenses while attending an apprved institutin lcated utside the U.S. The Secretary als determines whether institutins nly seeking designatin as an eligible institutin ( eligibility nly ), rather than Title IV participatin, meet r cntinue t meet the definitin f an eligible institutin. Thrugh June 30, 2010, freign institutins are nly permitted t participate in the Federal Family Educatin Lan (FFEL) Prgram. Hwever, effective July 1, 2010, riginatin f new lans under the FFEL Prgram will end, and freign schls will be eligible t participate in the William D. Frd Federal Direct Lan (Direct Lan) Prgram. Being designated as either a participating r an eligibility nly institutin qualifies an institutin r its students t participate in nn-federal student aid prgrams, such as the HOPE and Lifetime Learning Tax Credit prgrams. In additin, students attending these institutins qualify fr in-schl deferment f payments n their federal student lans they have previusly taken ut. Hwever, nly institutins certified by the Department t participate in the federal student aid prgrams are allwed t apprve new FFEL r Direct Lan prgram lans. Institutins certified as eligible nly are nt able t certify new federal student lans. The implementing regulatins fr determining institutinal eligibility and administrative capability can be fund at 34 C.F.R. Part 600 Institutinal Eligibility under the Higher Educatin Act f 1965, as Amended, and 34 C.F.R. Part 668 Student Assistance General Prvisins. Subpart E f Part 600 is specifically addressed t freign schls, althugh the remaining regulatins in Parts 600 and 668 apply as well. Institutinal Eligibility Three types f freign institutins are recgnized by the Secretary public, private nnprfit, and fr-prfit. Fr-prfit freign institutins may nly participate if they are either freestanding graduate medical schls, freestanding veterinary schls r, effective July 1, 2010, freestanding nursing schls. A freign institutin is eligible t apply t participate in the FFEL Prgram (r, as f July 1, 2010, the Direct Lan Prgram) if it is cmparable t an eligible institutin f higher educatin lcated in the United States and if it meets the fllwing eligibility criteria (as applicable fr the type f institutin). Page 1 f 6

2 Basic Eligibility Criteria Under current regulatins, which are underging review and will change within the next tw years, freign institutins must meet basic eligibility criteria (34 C.F.R ). Under the current regulatins, an institutin must: Admit as regular students nly persns wh Have a secndary schl cmpletin credential; r Have the recgnized equivalent f a secndary schl cmpletin credential; Be legally authrized by an apprpriate authrity t prvide an eligible educatinal prgram beynd the secndary schl level in the cuntry in which the institutin is lcated; and Prvide an eligible educatin prgram Fr which the institutin is legally authrized t award a degree that is equivalent t an assciate, baccalaureate, graduate, r prfessinal degree awarded in the United States; r That is at least a tw-academic-year prgram acceptable fr full credit tward the equivalent f a baccalaureate degree awarded in the U.S.; r That is equivalent t at least a ne-academic-year training prgram in the U.S. that leads t a certificate, degree, r ther recgnized educatinal credential and prepares students fr gainful emplyment in a recgnized ccupatin. The prgram is nt eligible if it is a distance r crrespndence educatin prgram in whle r in part. Demnstrate that it is financially respnsible under the requirements established in 34 C.F.R , and 34 C.F.R. Part 668, Subpart L. Additinal eligibility criteria apply t freign graduate medical schls, veterinary schls, and schls which ffer nursing prgrams, as described in subsequent sectins f this dcument. Freign Graduate Medical Schl Criteria Under current regulatins, which are underging review and will change ver the next tw years, the Secretary cnsiders a freign graduate medical schl t be eligible t apply t participate in the FFEL Prgram (r, as applicable, the Direct Lan Prgram) if, in additin t satisfying the criteria abve, the schl, whether freestanding r subsumed within a university, satisfies all f the fllwing criteria: The schl prvides, and in the nrmal curse requires its students t cmplete, a prgram f clinical and classrm medical instructin f nt less than 32 mnths in length, that is supervised clsely by members f the schl's faculty and that is prvided either Outside the U.S., in facilities adequately equipped and staffed t affrd students cmprehensive clinical and classrm medical instructin; r In the U.S., thrugh a training prgram fr freign medical students that has been apprved by all medical licensing bards and evaluating bdies whse views are cnsidered relevant by the Secretary. The schl has graduated classes during each f the tw 12-mnth perids immediately preceding the date the Secretary receives the schl's request fr an eligibility determinatin. Page 2 f 6

3 The schl emplys fr the prgram described abve nly thse faculty members whse academic credentials are the equivalent f credentials required f faculty members teaching the same r similar curses at medical schls in the U.S. The schl has been apprved by an accrediting bdy Either That is legally authrized t evaluate the quality f graduate medical schl educatinal prgrams and facilities in the cuntry where the schl is lcated; and Whse standards f accreditatin f graduate medical schls Have been evaluated by the advisry panel f medical experts established by the Secretary; and Have been determined t be cmparable t standards f accreditatin applied t medical schls in the U.S. During the academic year preceding the year fr which any f the schl's students seeks a FFEL Prgram lan, at least 60 percent f thse enrlled as full-time regular students in the schl and at least 60 percent f the schl's mst recent graduating class were persns wh did nt meet the citizenship and residency criteria cntained in sectin 484(a)(5) f the HEA, 20 U.S.C. 1091(a)(5); and fr a freign graduate medical schl utside f Canada, at least 60 percent f the schl's students and graduates wh tk any step f the examinatins administered by the Educatinal Cmmissin fr Freign Medical Graduates (ECFMG) (including the ECFMG English test) in the year preceding the year fr which any f the schl's students seeks a FFEL Prgram lan received passing scres n the exams (in perfrming the calculatin required in this paragraph, a freign graduate medical schl shall cunt as a graduate each persn wh graduated frm the schl during the three years preceding the year fr which the calculatin is perfrmed) (Nte: Effective July 1, 2010, the 60% pass rate requirement will increase t 75%); r The schl's clinical training prgram was apprved by a State as f January 1, 1992, and is currently apprved by that State. (Nte: The Higher Educatin Opprtunity Act f 2008 changed the January 1992 exceptin's same state requirement. It nw allws a freign medical schl that was eligible based n having a clinical training prgram apprved by a State as f January 1, 1992 t be eligible as lng as it has cntinuusly perated a clinical training prgram in at least ne State that apprves the prgram.) Page 3 f 6

4 Freign Veterinary Schl Criteria FOREIGN SCHOOL ELIGIBILITY CRITERIA Under current regulatins, which are being reviewed and will be changed within the next tw years, the Secretary cnsiders a freign veterinary schl t be eligible t apply t participate in the FFEL Prgram (r, as applicable, the Direct Lan Prgram) if, in additin t satisfying the basic eligibility criteria abve, the schl, whether freestanding r subsumed within a university, satisfies all f the fllwing criteria: The schl prvides, and in the nrmal curse requires its students t cmplete, a prgram f clinical and classrm veterinary instructin that is supervised clsely by members f the schl's faculty, and that is prvided either Outside the U.S., in facilities adequately equipped and staffed t affrd students cmprehensive clinical and classrm veterinary instructin; r In the U.S., thrugh a training prgram fr freign veterinary students that has been apprved by all veterinary licensing bards and evaluating bdies whse views are cnsidered relevant by the Secretary. The schl has graduated classes during each f the tw 12-mnth perids immediately preceding the date the Secretary receives the schl's request fr an eligibility determinatin. The schl emplys fr the prgram described abve f this sectin nly thse faculty members whse academic credentials are the equivalent f credentials required f faculty members teaching the same r similar curses at veterinary schls in the U.S. Fr a veterinary schl that is neither public nr private nn-prfit, the schl's students cmplete their clinical training at an apprved veterinary schl lcated in the U.S. Freign Nursing Schl Criteria The Higher Educatin Opprtunity Act created additinal institutinal eligibility criteria fr freign nursing schls that will becme effective n July 1, 2010 r n July 1, 2012, depending n the institutinal type f the freign nursing schl. Prir t July 1, 2010, a freign fr-prfit schl culd nly participate in the Department s federal student aid prgrams if it was a freign medical schl r freign veterinary schl. A freign fr-prfit nursing schl will be eligible t participate as f July 1, 2010 if, in additin t satisfying the basic eligibility criteria abve, the schl, whether freestanding r subsumed within a university, satisfies all f the fllwing criteria: The nursing schl has an agreement with a hspital, r accredited schl f nursing (as such terms are defined in sectin 801 f the Public Health Service Act (42 U.S.C. 296)), lcated in the U.S. that requires the students f the nursing schl t cmplete the students' clinical training at such hspital r accredited schl f nursing. The nursing schl has an agreement with an accredited schl f nursing lcated in the U.S. prviding that the students graduating frm the nursing schl lcated utside f the U.S. als receive a degree frm the accredited schl f nursing lcated in the U.S. The nursing schl certifies nly Federal Staffrd Lans, unsubsidized Federal Staffrd Lans, r Federal PLUS lans fr students attending the institutin (as f July 1, 2010, nly Direct Subsidized Lans, Direct Unsubsidized Lans, r Direct PLUS Lans). The nursing schl reimburses the Secretary fr the cst f any lan defaults fr current and frmer students included in the calculatin f the institutin's chrt default rate during the previus fiscal year. Page 4 f 6

5 Nt less than 75 percent f the individuals wh were students r graduates f the nursing schl, and wh tk the Natinal Cuncil Licensure Examinatin fr Registered Nurses in the year preceding the year fr which the institutin is certifying a Federal Staffrd Lan, an unsubsidized Federal Staffrd Lan, r a Federal PLUS lan (as f July 1, 2010, a Direct Subsidized Lan, a Direct Unsubsidized Lan, r a Direct PLUS Lan), received a passing scre n such examinatin. Nte: As the result f technical amendments t the Higher Educatin Opprtunity Act, the new nursing schl eligibility criteria described abve will nt apply t freign public nursing schls and freign nn-prfit nursing schls until July 1, 2012, prvided the freign public r fr-prfit nursing schls was eligible t participate in the FFEL prgram n August 13, 2008, the day befre the enactment f the Higher Educatin Opprtunity Act. Administrative Capability Criteria Institutins must als meet the administrative capability standards set frth in 34 C.F.R , which include, but are nt limited t, requirements that the institutin Appint a capable individual respnsible fr administering the federal lan prgrams; Have a system f internal checks and balances fr administering federal student financial aid; Have a divisin f functins amng persnnel determining student awards and thse disbursing funds that result frm thse award decisins; Establish and maintain recrds required under prgram regulatins; Perfrm frequent, peridic recnciliatin f fiscal ffice and financial aid ffice award data; Maintain a system t identify and reslve discrepancies in infrmatin the institutin receives frm varius surces abut a student's applicatin fr financial aid; Establish a satisfactry academic prgress plicy fr recipients f federal student financial aid; Establish a plicy fr refunding tuitin when a student withdraws frm classes; Establish a prcess t ensure that the institutin submits the required annual financial statements n time; Establish a prcess t ensure that the institutin submits the required annual cmpliance audit n time; Establish a prcess t ntify the Department within 10 days f any imprtant changes at the institutin; and Participate in the electrnic prcesses that the Department prvides at n substantial charge t the institutin. Page 5 f 6

6 T be in cmpliance with the administrative capability requirement that a schl participate in the Department s electrnic prcesses, the schl must: Use the electrnic applicatin (E-App) t submit and update the schl s eligibility infrmatin; Enrll in the Student Aid Internet Gateway (SAIG). Fr infrmatin abut the SAIG enrllment prcess, refer t the Freign Schl SAIG and System Cnnectivity area n the Freign Schl Infrmatin page; Use FAA Access r its SAIG mailbx t exchange student r applicant data n the Free Applicatin fr Federal Student Aid (FAFSA) r Institutinal Student Infrmatin Recrd (ISIR) with the Department s Central Prcessing System (CPS); Use the COD Web site r its SAIG mailbx t exchange award and disbursement data fr Direct Lans; Submit t the Natinal Student Lan Data System (NSLDS) student enrllment recrds, federal student aid prgram verpayments, and NSLDS Transfer Student Mnitring recrds; Use its SAIG mailbx t receive its draft and fficial chrt default rate infrmatin electrnically; Use the Infrmatin fr Financial Aid Prfessinals (IFAP) Web site t review Freign Schl Updates, Electrnic Annuncements, Dear Clleague Letters, Federal Register publicatins, and ther imprtant infrmatin. Page 6 f 6

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