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attending such institution for the academic year succeeding the academic year in <br />which such loss of eligibility occurred. <br />(3) Limitations based on course of study or enrollment. An institution shall not be considered <br />to meet the definition of an institution of higher education in paragraph (1) if such <br />institution- <br />(A) Offers more than So percent of such institution's courses by correspondence, unless <br />the institution is an institution that meets the definition in section 2471(4)(C) of this <br />title; <br />(B) Enrolls 50 percent or more of the institution's students in correspondence courses, <br />unless the institution is an institution that meets the definition in such section, except <br />that the Secretary, at the request of such institution, may waive the applicability of <br />this subparagraph to such institution for good cause, as determined by the Secretary in <br />the case of an institution of higher education that provides a 2-or 4-year program of <br />instruction (or both) for which the institution awards an associate or baccalaureate <br />degree, respectively; <br />(C) Has a student enrollment in which more than 25 percent of the students are <br />incarcerated, except that the Secretary may waive the limitation contained in this <br />subparagraph for a nonprofit institution that provides a 2-or 4-year program of <br />instruction (or both) for which the institution awards a bachelor's degree, or an <br />associate's degree or a postsecondary diploma, respectively; or <br />(D) Has a student enrollment in which more than 50 percent of the students do not have a <br />secondary school diploma or its recognized equivalent, and does not provide a 2-or 4- <br />yearprogram ofinstruction (or both) for which the institution awards a bachelor's <br />degree or an associate's degree, respectively, except that the Secretary may waive the <br />limitation contained in this subparagraph if a nonprofit institution demonstrates to the <br />satisfaction of the Secretary that the institution exceeds such limitation because the <br />institution serves, through contracts with Federal, State, or local government <br />agencies, significant numbers of students who do not have a secondary school <br />diploma or its recognized equivalent. <br />(4) Limitations based on management. An institution shall not be considered to meet the <br />definition of an institution of higher education in paragraph (1) if- <br />(A) The institution, or an affiliate of the institution that has the power, by contractor <br />ownership interest, to direct or cause the direction of the management or policies of <br />the institution, has filed for bankruptcy, except that this paragraph shall not apply to a <br />nonprofit institution, the primary function of which is to provide health care <br />educational services (or an affiliate of such an institution that has the power, by <br />contract or ownership interest, to direct or cause the direction of the institution's <br />management or policies) that files for bankruptcy under chapter 11 of title 11 between <br />July 1,1998, and December 1,1998; or <br />(B) The institution, the institution's owner, or the institution's chief executive officer has <br />been convicted of, or has pled nolo contendere or guilty to, a crime involving the <br />acquisition, use, or expenditure of funds under subchapter IV of this chapter and part <br />C of subchapter I of chapter 34 of title 42, or has been judicially determined to have <br />Page 3 -27 <br />~~02~2012 <br />