This bill makes it possible for American students to use federal financial aid to attend online or hybrid programs offered by colleges and universities in other countries. Right now, federal student aid (like grants and loans) generally can't be used for distance education programs at foreign schools, but this bill changes that.

Here's what the bill actually allows: A foreign college can offer a program that includes some online classes, as long as most of the program still requires students to be in the classroom in person. Specifically, no more than 12.5% of the program can be purely online courses. The foreign school also has to be evaluated and approved by an outside organization (like an accrediting agency) to make sure it can actually deliver online education effectively. Additionally, students using federal aid must physically be in the country where the foreign school is located while taking the online portions of their program—they can't be studying from the United States.

This opens up new options for American students who want to study abroad but might benefit from some flexibility through online coursework. It also gives foreign universities access to American federal student aid funding. The changes take effect three months after the bill becomes law and apply to semesters starting after that date.