10. a. The Secretary of Higher Education shall approve an institution of higher education or a proprietary institution licensed to offer academic degrees to act as an eligible transfer institution if the institution:

(1) is in good standing with its accreditor and, if applicable, its licensing body;

(2) if applicable, has not been sanctioned by the United States Department of Education due to having a high cohort loan default rate;

(3) has not been placed on Heightened Cash Monitoring Payment Method Level 2 by the United States Department of Education;

(4) within the previous five years has not had any judgments related to a consumer protection law entered against it in favor of a law enforcement agency; and

(5) meets the requirements provided in section 9 of P.L.2021, c.27 (C. 18A:3B-93), and any additional standards provided pursuant to subsection b. of this section.

b. The secretary may establish additional standards on a case-by-case basis for approving an eligible transfer institution.

L.2021, c.27, s.10.