Page:United States Statutes at Large Volume 106 Part 1.djvu/670

 106 STAT. 638 PUBLIC LAW 102-325—JULY 23, 1992 Secretary fails to approve or disapprove a State request to review additional institutions within 21 days, the State may proceed to review such additional institutions as if approved by the Secretary. "(b) REVIEW CRITERIA.— The criteria for the initial review of institutions of higher education are as follows: "(1) A cohort default rate (as defined in section 435(m)) equal to or greater than 25 percent. "(2) A cohort default rate (as defined in such section) equal to or greater than 20 percent and either— "(A) more than two-thirds of the institution's total undergraduates who are enrolled on at least a half-time basis receive assistance under this title (except subparts 4 and 6ofpartA);or "(B) two-thirds or more of the institution's education and general expenditures are derived from funds provided to students enrolled at the institution from the programs established under this title (except subparts 4 and 6 of part A and section 428B). "(3) Two-thirds or more of the institution's education and general emenditures are derived from funds provided to students enrolled at the institution pursuant to subpart 1 of part A of this title. "(4) A limitation, suspension, or termination action by the Secretary against the institution pursuant to section 487 during the preceding 5 years. "(5) An audit finding during the 2 most recent audits of an institution of higher education's conduct of the programs established by this title that resulted in the repa3maent by the institution of amounts greater than 5 percent of the funds such institution received from the programs assisted under this title for any one year. "(6) A citation of an institution by the Secretary for failiu'e to submit audits required by this title in a timely fashion. "(7) A year-to-year fluctuation of more than 25 percent in the amounts received by students enrolled at the institution from either Federal Pell Grant, Federal Stafford Loan, or Federal Supplemental Loans to Students programs, which are not accounted for by changes in these programs. "(8) Failure to meet financial responsibility standards pursuant to subpart 3 of this part. "(9) A change of ownership of the institution that results in a change of control which includes (but is not limited to)— "(A) the sale of the institution or the majority of its assets; "(B) the division of 1 or more institutions into 2 or more institutions; "(C) the transfer of the controlling interest in stock of the institution or its parent corporation; the institution to its parent corporation; or "(E) the transfer of the liabilities of the institution to its parent corporation. "(10) Except with regard to any public institution that is affiliated wim a State system of higher education, participation in any of the programs established pursuant to subparts 1 and 3 of part A, part B, part C, and part E of this title for less than 5 years.
 * (D) the transfer of the controlling interest of stock of

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