To amend the Higher Education Act of 1965 to prohibit classifying certain courses of instruction as correspondence courses.

Amends the Higher Education Act of 1965 (HEA) to provide that students enrolled in courses of instruction at eligible institutions of higher education that are offered in whole or part through visual telecommunications devices or mediums and lead to recognized associate, bachelor, or graduate degrees shall not: (1) be considered to be enrolled in correspondence courses (which are not eligible for student assistance); and (2) have their eligibility to participate in HEA title IV student assistance programs restricted or reduced solely on the basis of their enrollment in such courses offered through visual telecommunications.

Prohibits the Secretary of Education, for award years prior to enactment of this Act, to take any action against a student or eligible institution arising out of a prior award of student assistance if the institution demonstrates that its course of instruction would have been in conformance with this Act.