§ 1103a — Waiver Authority And Reporting Requirement

(a) The Secretary may waive the requirements set forth in section 1101a(a)(2)(A)(i) of this title in the case of an institution— (1) that is extensively subsidized by the State in which the institution is located and charges low or no tuition; (2) that serves a substantial number of low-income students as a percentage of the institution’s total student population; (3) that is contributing substantially to increasing higher education opportunities for educationally disadvantaged, underrepresented, or minority students, who are low-income individuals; (4) which is substantially increasing higher educational opportunities for individuals in rural or other isolated areas which are unserved by postsecondary institutions; or (5) wherever located, if the Secretary determines that the waiver will substantially increase higher education opportunities appropriate to the needs of Hispanic Americans. (1) The Secretary may waive the requirements set forth in section 1101a(a)(2)(A)(ii) of this title if the Secretary determines, based on persuasive evidence submitted by the institution, that the institution’s failure to meet the requirements is due to factors which, when used in the determination of compliance with the requirements, distort such determination, and that the institution’s designation as an eligible institution under part A is otherwise consistent with the purposes of this subchapter. (2) The Secretary shall submit to Congress every other year a report concerning the institutions that, although not satisfying the requirements of section 1101a(a)(2)(A)(ii) of this title, have been determined to be eligible institutions under part A. Such report shall— (A) identify the factors referred to in paragraph (1) that were considered by the Secretary as factors that distorted the determination of compliance with clauses (i) and (ii) of section 1101a(a)(2)(A) of this title; and (B) contain a list of each institution determined to be an eligible institution under part A including a statement of the reasons for each such determination.