Accreditation Oversight Act of 1991

Accreditation Oversight Act of 1991 - Amends the Higher Education Act of 1965 (HEA) to establish accreditation oversight and review requirements.

Makes such requirements applicable to the identification by the Secretary of Education, under specified HEA provisions, of nationally recognized agencies and associations that accredit institutions of higher education.

Requires the head of the bureau or office of the Department of Education responsible for identifying and approving such accrediting agencies and organizations to: (1) report directly to the Assistant Secretary for Postsecondary Education; and (2) not report or be subject to any subordinate of such Assistant Secretary.

Requires, as a condition of such identification or approval, such accrediting agencies and organizations to review the retention of accreditation by institutions of higher education with: (1) high cohort default rates on student loans; (2) low rates of study completion; or (3) low job placement rates (in the case of vocational and proprietary schools).

Directs the Secretary to order a special review of the operations of any accrediting agency or organization if the cohort default rate of more than 35 percent of the institutions accredited by it exceeds 25 percent.

Directs the Secretary, within one year, to study and report to the Congress, with recommendations for remedial action, on the extent to which conflicts of interest impair the proper functioning of accrediting agencies and organizations for purposes of HEA programs.