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(1) Principal criteria - According to 20 USCS § 1002 (Title 20, Education; Chapter 28, Higher Education Resources and Student Assistance; General Provisions; Definitions), for the purpose of this section, the term "proprietary institution of higher education" means “a school that--
(A) provides an eligible program of training to prepare students for gainful employment in a recognized occupation;
(B) meets the requirements of paragraphs (1) and (2) of section 101(a) [20 USCS § 1001(a)];
(C) does not meet the requirement of paragraph (4) of section 101(a) [20 USCS § 1001(a)];
(D) is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part H of title IV [20 USCS §§ 1099a et seq.]; and
(E) has been in existence for at least 2 years.
(2) Additional institutions - The term "proprietary institution of higher education" also includes a proprietary educational institution in any State that, in lieu of the requirement in paragraph (1) of section 101(a) [20 USCS § 1001(a)], admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located.”