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<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 awa <br /> <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 />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 contract or <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 /> <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) <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 />committed fraud involving funds under subchapter IV of this chapter and part C of <br />subchapter I of chapter 34 of title 42. <br />(5) <br />higher education in accordance with the requirements of subpart 3 of part G of subchapter <br />IV of this chapter. <br />(6) Loss of eligibility. An institution of higher education shall not be considered to meet the <br />definition of an institution of higher education in paragraph (1) if such institution is <br />removed from eligibility for funds under subchapter IV of this chapter and part C of <br />subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of <br />subchapter IV of this chapter. <br />Page 3-32 <br /> <br />04/01/14 <br /> <br />