Section 602.16 - Accreditation and preaccreditation standards(a) The agency must demonstrate that it has standards for accreditation, and preaccreditation, if offered, that are sufficiently rigorous to ensure that the agency is a reliable authority regarding the quality of the education or training provided by the institutions or programs it accredits. The agency meets this requirement if the following conditions are met:(1) The agency's accreditation standards must set forth clear expectations for the institutions or programs it accredits in the following areas: (i) Success with respect to student achievement in relation to the institution's mission, which may include different standards for different institutions or programs, as established by the institution, including, as appropriate, consideration of State licensing examinations, course completion, and job placement rates.(iv) Facilities, equipment, and supplies.(v) Fiscal and administrative capacity as appropriate to the specified scale of operations.(vi) Student support services.(vii) Recruiting and admissions practices, academic calendars, catalogs, publications, grading, and advertising.(viii) Measures of program length and the objectives of the degrees or credentials offered.(ix) Record of student complaints received by, or available to, the agency.(x) Record of compliance with the institution's program responsibilities under title IV of the Act, based on the most recent student loan default rate data provided by the Secretary, the results of financial or compliance audits, program reviews, and any other information that the Secretary may provide to the agency; and(2) The agency's preaccreditation standards, if offered, must- (i) Be appropriately related to the agency's accreditation standards; and(ii) Not permit the institution or program to hold preaccreditation status for more than five years before a final accrediting action is made.(b) Agencies are not required to apply the standards described in paragraph (a)(1)(x) of this section to institutions that do not participate in title IV, HEA programs. Under such circumstance, the agency's grant of accreditation or preaccreditation must specify that the grant, by request of the institution, does not include participation by the institution in title IV, HEA programs.(c) If the agency only accredits programs and does not serve as an institutional accrediting agency for any of those programs, its accreditation standards must address the areas in paragraph (a)(1) of this section in terms of the type and level of the program rather than in terms of the institution.(d)(1) If the agency has or seeks to include within its scope of recognition the evaluation of the quality of institutions or programs offering distance education, correspondence courses, or direct assessment education, the agency's standards must effectively address the quality of an institution's distance education, correspondence courses, or direct assessment education in the areas identified in paragraph (a)(1) of this section.(2) The agency is not required to have separate standards, procedures, or policies for the evaluation of distance education or correspondence courses.(e) If none of the institutions an agency accredits participates in any title IV, HEA program, or if the agency only accredits programs within institutions that are accredited by a nationally recognized institutional accrediting agency, the agency is not required to have the accreditation standards described in paragraphs (a)(1)(viii) and (a)(1)(x) of this section.(f) An agency that has established and applies the standards in paragraph (a) of this section may establish any additional accreditation standards it deems appropriate.(g) Nothing in paragraph (a) of this section restricts-(1) An accrediting agency from setting, with the involvement of its members, and applying accreditation standards for or to institutions or programs that seek review by the agency;(2) An institution from developing and using institutional standards to show its success with respect to student achievement, which achievement may be considered as part of any accreditation review; or(3) Agencies from having separate standards regarding an institution's or a program's process for approving curriculum to enable programs to more effectively meet the recommendations of- (i) Industry advisory boards that include employers who hire program graduates;(ii) Widely recognized industry standards and organizations;(iii) Credentialing or other occupational registration or licensure; or(iv) Employers in a given field or occupation, in making hiring decisions.(4) Agencies from having separate faculty standards for instructors teaching courses within a dual or concurrent enrollment program, as defined in 20 U.S.C. 7801 , or career and technical education courses, as long as the instructors, in the agency's judgment, are qualified by education or work experience for that role.84 FR 58919, Nov. 1, 2019 Authority: 20 U.S.C. 1099b