Internet Equity and Education Act of 2001

Internet Equity and Education Act of 2001 - Amends the Higher Education Act of 1965 (HEA) to exempt courses offered through telecommunications from certain limitations on student financial assistance with respect to correspondence courses. Allows such exemption if the institution offering such course through telecommunications: (1) is participating in the guaranteed or the direct student loan program; and (2) has a cohort default rate of less than ten percent for each of the most recent fiscal years for which data are available.

Defines a week of instruction as one in which at least one day of instruction, examination preparation, or examination occurs, for purposes of determining an academic year for HEA student aid programs.

Prohibits higher education institutions participating in HEA student assistance programs from making any incentive, non-salary payment, based directly on success in securing enrollments or financial aid, to any person or entity directly engaged in student recruiting or admission activities, or making decisions regarding the award of student financial assistance. Exempts from such prohibition recruitment of foreign students not eligible to receive Federal student assistance.