H.R. 4054: Accreditation Choice and Innovation Act

The "Accreditation Choice and Innovation Act" seeks to modernize the Higher Education Act of 1965 with several key objectives aimed at enhancing the accreditation process for higher education institutions.

Reforming Accreditation Standards

The bill proposes changes to how accrediting agencies are recognized and evaluated, focusing on:

• Successful Student Outcomes: Accrediting bodies must align their standards with measurable outcomes that reflect student success post-graduation.
• Diverse Educational Methods: The approach encourages recognition of various educational delivery methods, such as online learning, hybrid models, and other innovative teaching practices.
• Religious Mission Respect: Institutions that operate with a specific religious mission will have their unique goals and values acknowledged in the accreditation process.

Defining Financial Assistance Terms

The bill provides clear definitions related to student financial assistance that includes the following:

• Total Price: This term includes all costs associated with attendance, encompassing tuition, fees, and other expenses, post any financial aid received.
• Value-Added Earnings: This concept refers to the additional income students can expect to earn by completing their education, factoring in financial aid.
• Geographic Adjustments: The bill allows for calculations to consider the geographic location of institutions, facilitating a fair evaluation of costs and earnings across different regions.
• Distance Education Exceptions: Special eligibility conditions for distance education programs are outlined to ensure that off-campus learners are recognized in financial assistance structures.

Overall Goals

By implementing these reforms, the legislation aims to create a more equitable and effective higher education system, ensuring that the accreditation process is transparent and aligned with contemporary educational needs and outcomes.

Relevant Companies

• EDU - New Oriental Education & Technology Group Inc.: This company, which offers educational services and operates learning centers in China, could be affected by the reforms related to distance education and accreditation standards.
• PRDO - Perdoceo Education Corporation: As a provider of online learning programs, changes to accreditation standards may directly influence its operational processes and its ability to attract students.