A bill to establish criteria to be observed by approving entities for federally assisted postsecondary education programs in order to protect students in such programs.

Postsecondary Education Consumer Protection Act - States that the purpose of this Act is to provide protection for students, consumers, and legitimate postsecondary educational institutions against substandard or fraudulent practices.

Defines the term "federally recognized approving entity" as an entity relied upon by any Federal officer or agency in connection with a program: (1) of Federal assistance to postsecondary educational institutions by way of grants or contracts, loans, or loan insurance or guarantee; (2) of Federal assistance to students at postsecondary educational institutions by way of grants; loans, loan insurance or guarantee, or work programs; or (3) under which continuation of Federal payment is conditioned on attendance at a postsecondary educational institution approved or accredited by an approving entity.

Directs the Secretary of Health, Education, and Welfare, through the Advisory Committee on Accreditation and Institutional Eligibility, to conduct a study of the operation and effectiveness of the various federally recognized approving entities. Requires the Secretary to make such interim reports of his activities, findings, and recommendations as he may deem appropriate and to make a final report to the President and the Congress not later than two years after the date of enactment of this Act.

States that, upon completion of the study conducted under this Act, the Secretary shall revise the criteria to be met by federally recognized approving entities.

Stipulates that whenever an officer or agency of the United States receives notification from the Secretary that a federally recognized approving entity fails to meet the criteria set by the Secretary, he shall discontinue reliance on such entity's approval or accreditation of postsecondary educational institutions or programs.

Directs the Secretary to publish biannually in the Federal Register a list showing the following: (1) the approving entities which currently meet the criteria established by the Secretary pursuant to this Act; (2) the postsecondary educational institutions which are approved or accredited by such approving entities including a particularization of the departments or courses of study which are approved or accredited at the institutions; and (3) the institutions which have lost approval or accreditation and those whose applications for approval or accreditation were not accepted.