(a) The Distance Education Program is established in the agency to approve distance education programs and to provide grants to students who enroll in approved distance education programs.

(b) The agency shall administer and establish guidelines for the distance education program. The agency may collect student and school data to assess the performance of the distance education program, provided that such collection complies with the rights and responsibilities certification document of the Pennsylvania State Grant Program as administered by the agency.

(c) An institution of higher education may submit an application to the agency for approval to participate in the distance education program. The application must be submitted in such form and manner as prescribed by the agency.

(d) The agency shall review requests submitted under subsection (c) and, if the institution meets the criteria specified in the definitions of “institution of higher education” and “approved distance education program,” shall approve the request. The agency shall approve requests related to all academic majors that are eligible under the State grant program.

(e) The agency may award, from funds appropriated, allocated or otherwise made available to it, grants to students who are enrolled in approved distance education programs at participating institutions of higher education. The agency shall establish a policy to ensure that awards are made in a consistent manner throughout the award year.

(f) A student enrolled in an approved distance education program shall submit an application for a State grant from the agency. The application must be submitted in such form and in a manner as prescribed by the agency.

(g) The agency shall review an application submitted under subsection (f) and, based on available resources, if the agency concludes that the applicant has financial need, may award a State grant to the applicant to cover the cost of full-time or at least half-time study in the approved distance education program at an institution of higher education approved for participation in the distance education program.

(h) A grant awarded to a student under subsection (g) may not exceed per award year the amount the student would receive under the State grant program for the same award year.

(i) This section shall apply to academic years 2013-2014 through 2017-2018.

(j) This section shall expire June 30, 2018.

(k) The following words and phrases shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Agency.” The Pennsylvania Higher Education Assistance Agency.

“Approved distance education program.” A program of study offered by an institution of higher education that is approved by the agency and meets the following criteria:

(i) The program is at least two academic years in length.

(ii) Completion of the program leads to the attainment of a recognized academic credential.

(iii) The program of study shall allow an eligible student to take more than fifty percent (50%) of credits or clock hours through distance education for each payment period in which the eligible student is enrolled.

(iv) The program must be pursued by students on a full-time basis or at least a half-time basis.

“Distance education program.” The Distance Education Program established by this section.

“Eligible student.” A student who is otherwise eligible for the State grant program, notwithstanding the distance education requirements of the State grant program.

“Institution of higher education.” A postsecondary institution that participated in the State grant program as of June 30, 2012, and is domiciled and headquartered with its principal physical location in this Commonwealth.

“Physical location.” A location with qualified on-site administrative staff responsible for the overall administrative operation of all educational activities, including, but not limited to, instructional oversight, counseling, advising, library services and maintenance of academic records.

“State grant.” A grant or scholarship awarded under the act of January 25, 1966 (1965 P.L. 1546, No. 541),¹ referred to as the Higher Education Scholarship Law.