66850 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and RegulationsWReier-Aviles on DSKGBLS3C1PROD with RULES2similar program. Thus, we do not agreewith the recommendation that aninstitution should be required todemonstrate the portability <strong>of</strong> suchcredits to other institutions <strong>of</strong> highereducation <strong>of</strong>fering similar programs aswe believe such a requirement would,in fact, interfere with the academicdecision-making processes atinstitutions.These regulations should not beinconsistent with current Federal laws,State regulations, and accreditingagencies’ policies because <strong>of</strong> theirintended narrow application to thedetermination <strong>of</strong> eligibility for, anddistribution <strong>of</strong>, Federal program funds.Therefore, to the extent an institutiondetermines that it may be necessary touse a current credit assignment system,for example, to comply with otherrequirements such as State mandates, aninstitution may continue using itscurrent system for purposes unrelated toFederal programs.We do not agree with the commenterthat the credit-hour definition in § 600.2conflicts with the Americans withDisabilities Act <strong>of</strong> 1990, as amended.The credit-hour definition in § 600.2does not prohibit institutions fromdeveloping policies for academicallyaccommodating students withdisabilities in accordance with theAmericans with Disabilities Act <strong>of</strong> 1990,as amended. The credit-hour definitionprovides institutions with the flexibilityto determine the appropriate credithours or equivalencies to award forstudent work.Changes: None.Comment: Several commentersbelieved that a Federal definition <strong>of</strong> acredit hour is unnecessary. Many <strong>of</strong>these commenters noted that there hasbeen no history <strong>of</strong> fraudulent practicesin credit assignment by institutions inthe nonpr<strong>of</strong>it sector and that any fraudor abuses identified have been in thefor-pr<strong>of</strong>it sector. Some <strong>of</strong> thesecommenters believed that it is unfair toapply a Federal definition <strong>of</strong> a credithour to all institutions. One commentersuggested that the credit-hour definitionapply only to institutions that are notaccredited by regional or specializedaccreditors.A few commenters believed that theSecretary’s only motive to define acredit hour stemmed from a report fromthe <strong>Department</strong>’s Inspector Generalregarding one regional accreditingagency’s accreditation <strong>of</strong> a for-pr<strong>of</strong>itinstitution it found to haveinappropriate credit-hour policies. Onecommenter believed that although therehave been problems reported with someinstitutions’ assignment <strong>of</strong> credit hours,these problems were primarily related totwo regional accrediting agencies’evaluation <strong>of</strong> degree programs and notwith vocational career educationprograms.One commenter expressed concernthat enforcement <strong>of</strong> institutions’compliance with the credit-hourdefinition would be directed primarilyat for-pr<strong>of</strong>it institutions even thoughthere have been inappropriate creditawarding practices at nonpr<strong>of</strong>itinstitutions as well.A few commenters believed thatinstitutional credit assignment problemsidentified in the nonpr<strong>of</strong>it sector areeffectively resolved through the existingprocesses <strong>of</strong> accreditation andinstitutional self-review.One commenter suggested thatinstead <strong>of</strong> establishing a Federal credithourdefinition, the <strong>Department</strong> shouldrequire institutions to describe theircredit assignment policies in theircatalogs and promotional materials.Discussion: The Secretary did notintend to define a credit hour forFederal program purposes as a punitivemeasure against institutions in aparticular sector or institutions thathave engaged in inappropriate creditawarding practices in the past. Instead,the revised credit-hour definition isintended to provide a minimum,consistent standard for all institutionsregardless <strong>of</strong> State, sector, or accreditorin determining the amount <strong>of</strong> studentwork necessary to award credit hoursequitably for Federal program purposes.Changes: None.Comment: A few commentersbelieved that a Federal credit-hourdefinition is unnecessary because Stateagencies already review institutions’credit-hour policies within their generaloversight <strong>of</strong> an institution’s integrity.Discussion: We do not agree. ManyState agencies do not perform suchoversight activities nor do they use auniform standard that would assure theequitable administration <strong>of</strong> Federalprograms.Changes: None.Administrative BurdenComment: Several commentersbelieved that the proposed credit-hourprovisions would cause an undueadministrative and financial burden oninstitutions. A few commenters believedthat institutions would be forced t<strong>of</strong>ocus their administrative resources onensuring that their programs andcourses conform to the Federal credithourdefinition and remain eligible fortitle IV, HEA program funds instead <strong>of</strong>other important academic matters suchas ensuring program integrity. Othercommenters believed that in order tocomply with the proposed credit-hourVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00020 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2definition, institutions would beburdened with administrative taskssuch as reevaluating and significantlyrestructuring their credit-assignmentsystems, ensuring compliance with theiraccrediting agency’s standards,reconfiguring the use <strong>of</strong> classroomspace, and recalculating students’financial aid packages.One commenter believed that Stateagencies and accrediting agencies willbe burdened by the requirement to focuson institutions at a more detailed leveland will need to increase their staffs andcosts to account for the increasedworkload. This commenter believed thatincreased costs would be passed toinstitutions, and subsequently, tostudents.Discussion: We do not believe thatassigning credit to courses inaccordance with the definition <strong>of</strong> credithour in § 600.2 for Federal programpurposes will cause any significantincrease in administrative or financialburden on institutions. Institutionsparticipating in Federal programs suchas title IV, HEA programs are alreadyresponsible for ensuring the appropriatetreatment <strong>of</strong> Federal funds, includingaccurate distribution <strong>of</strong> Federal funds tostudents. Institutions will not berequired to change their current systems<strong>of</strong> awarding credit for academicpurposes which in many instances willalready be compliant with these finalregulations, but some institutions willbe required to make the necessarychanges to ensure accurate andequitable credit assignments for Federalprogram purposes.We do not believe that the credit-hourdefinition will cause any significantincrease in the administrative burden onaccrediting agencies or State agenciesrecognized under 34 CFR part 603.Section 496(a)(5) <strong>of</strong> the HEA requiresaccrediting agencies recognized by theSecretary to evaluate an institution’s orprogram’s ‘‘measures <strong>of</strong> program lengthand the objectives <strong>of</strong> the degrees orcredentials <strong>of</strong>fered’’ which inherentlyrequires accrediting agencies to evaluatethe courses that constitute institutions’programs.Changes: None.Accrediting Agency Procedures(§ 602.24(f))Comment: Several commenterssupported the addition <strong>of</strong> § 602.24(f).These commenters believed thataccrediting agencies are the appropriateentities to ensure institutions’compliance with the credit-hourprovisions in § 600.2.Many other commenters believed thatthe proposed provisions in § 602.24(f)are unnecessary. These commenters
Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66851WReier-Aviles on DSKGBLS3C1PROD with RULES2believed that the integrity <strong>of</strong>institutions’ assignment <strong>of</strong> credit hoursis already reviewed and evaluated byaccrediting agencies through a system <strong>of</strong>peer review. These commenters alsobelieved that the peer-review system iscapable <strong>of</strong> recognizing how credit hoursare defined in different settings. A fewcommenters noted that the Secretary hasalready permitted accrediting agenciesto perform this function and thataccreditors have been diligent in theirduties. One commenter believed that theSecretary could tighten Federalregulatory control over institutions’credit-hour policies by revising theexisting accrediting agency recognitionregulations in 34 CFR part 602.One commenter believed thataccrediting agencies have long-standingpractices, or in the case <strong>of</strong> some nationalaccrediting agencies, formulas thatprovide reasonable measures <strong>of</strong> credithours.Discussion: We agree with thecommenters who believed thataccrediting agencies’ peer-reviewsystems are structured to evaluate theappropriateness <strong>of</strong> institutions’ creditpolicies and assignments in diverseeducational settings. Amending § 602.24to add § 602.24(f) initially was aproposal <strong>of</strong> the non-Federal negotiatorsrepresenting accrediting agencies toclarify their role in overseeing theassignment <strong>of</strong> credit hours byinstitutions as it relates to Federalprogram requirements. With theaddition <strong>of</strong> the credit-hour definition in§ 600.2, we added § 602.24(f) regardingan accrediting agency’s review <strong>of</strong> aninstitution’s policies and procedures forassigning credit hours, and theinstitution’s application <strong>of</strong> thesepolicies because this addition indicateshow those requirements fit together andmakes the two regulations consistent.We note that these provisions relatesolely to an accrediting agency’sconsideration <strong>of</strong> an institution’simplementation <strong>of</strong> the credit-hourdefinition for Federal program purposes.The regulations do not require theaccrediting agency to use the definition<strong>of</strong> credit hour in § 600.2 for non-Federalpurposes nor do the regulations prohibitan accrediting agency from only usingthe definition <strong>of</strong> credit hour in § 600.2.We believe that § 602.24(f) is theappropriate place to define accreditingagencies’ responsibilities for reviewinginstitutions’ processes for assigningcredit for title IV, HEA programpurposes because § 602.24 defines theprocedures institutional accreditorsmust have if the institutions theyaccredit participate in title IV, HEAprograms.Changes: None.Comment: Several commenters didnot support the addition <strong>of</strong> § 602.24(f)because they believed the proposedprovisions would allow the <strong>Department</strong>to indirectly regulate academic matters.A few <strong>of</strong> these commenters requestedthat the <strong>Department</strong> add language to theregulations making it clear that noprovision in § 602.24 would permit theSecretary to establish any criteria thatspecifies, defines, or prescribes theprocedures that accrediting agenciesshall use to assess any institution’scredit-hour policies or procedures.One commenter believed that byrequiring accrediting agencies to ensureinstitutions’ compliance with theproposed credit-hour definition in§ 600.2, the <strong>Department</strong> would beplacing accrediting agencies into aquasi-regulatory role for which they areneither designed nor intended. Thiscommenter believed that over timeaccrediting agencies’ regulatory role willbe seen as their most important role andaccrediting agencies will in effectbecome government agents. Anothercommenter believed that proposed§ 602.24(f) would cause accreditingagencies to focus on institutions’assignment <strong>of</strong> credit hours instead <strong>of</strong>other valuable areas <strong>of</strong> review.One commenter requestedclarification <strong>of</strong> whether § 602.24(f)would allow the <strong>Department</strong> to relyexclusively on an accrediting agency’sdetermination <strong>of</strong> an institution’sdefinition and assignment <strong>of</strong> credit, orwhether the <strong>Department</strong> would haveseparate authority under the regulationsto evaluate and regulate an institution’sdefinition or assignment <strong>of</strong> credit fortitle IV, HEA program eligibilitypurposes.One commenter believed that anaccrediting agency found to bepermitting inappropriate creditassignment activities at institutionsshould be cited and forced to addressthe identified issues. Anothercommenter believed that institutions’policies for assigning credit areextremely diverse, and that the<strong>Department</strong> is not capable <strong>of</strong> properlydetermining whether an accreditingagency has appropriately evaluated thevariety <strong>of</strong> institutional policies.One commenter believed theprovisions in § 602.24(f) areunnecessary because section496(a)(5)(H) <strong>of</strong> the HEA requiresaccrediting agencies to assessinstitutions’ measures <strong>of</strong> program lengthbut does not mandate any quantitativerequirements establishing thecomponents necessary for the measure<strong>of</strong> credit.Discussion: The provisions in§ 602.24(f) reflect that accreditingVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00021 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2agencies are the oversight bodiesresponsible for evaluating theappropriateness <strong>of</strong> institutions’ policiesand procedures for assigning credit thatis consistent with Federal programpurposes. This role is in accordancewith the provisions <strong>of</strong> the HEA underwhich accrediting agencies have theprimary responsibility, as part <strong>of</strong> theoversight triad with the FederalGovernment and State agencies, todetermine whether institutionsparticipating in Federal programs suchas the title IV, HEA programs, meetminimum standards <strong>of</strong> educationalquality. The provisions in § 602.24(f)further support accrediting agencies infulfilling these responsibilities but donot prescribe the methods by whichaccrediting agencies must perform theseevaluations.If the Secretary determines that arecognized accrediting agency does notcomply with the provisions in§ 602.24(f) for purposes <strong>of</strong> Federalprograms, or is not effective in itsperformance with respect to theseprovisions, then the Secretary mayrestrict or remove the agency’srecognition in accordance with 34 CFRpart 602, subpart C.We do not agree that the provisions in§ 602.24(f) are unnecessary. Whilesection 496(a)(5)(H) <strong>of</strong> the HEA requiresaccrediting agencies to assessinstitutions’ measures <strong>of</strong> programlength, we believe the provisions in§ 602.24(f) provide necessaryclarification regarding the means <strong>of</strong>evaluating an institution’s assignment <strong>of</strong>credit hours.Changes: None.Comment: A few commentersbelieved that the provisions in§ 602.24(f) were not specific enoughwith regard to the requirements foraccrediting agencies.One commenter proposed that the<strong>Department</strong> require accrediting agenciesto base their evaluations <strong>of</strong> the validity<strong>of</strong> institutions’ credit-hour assignmentson the manner in which otherinstitutions <strong>of</strong>fering similar programsassess and accept credits for purposes <strong>of</strong>evaluating credit for transfer.One commenter asked the <strong>Department</strong>to revise proposed § 602.24(f)(1)(ii) tospecify that accrediting agencies mustmake a determination <strong>of</strong> whether aninstitution’s assignment <strong>of</strong> credit hoursconforms to the provisions in proposed§ 600.2.One commenter recommended thatthe <strong>Department</strong> require accreditingagencies to prescribe clearly themethodologies and equivalencies thatwill be utilized by institutions todetermine the amount <strong>of</strong> work specifiedby the credit assigned to courses as
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