Congress is beginning work on extending the Higher Education Act and is considering easing a provision in the current law that prohibits colleges from receiving federal aid if they offer more than 50% of their courses via distance education. The Clinton Administration has proposed eliminating the "50%" rule, initially introduced to prevent fraud following a 1992 scandal involving several correspondence schools and has asked accrediting agencies to develop standards for distance learning programs. At the same time, the Department of Education has urged officials to limit any changes to include only programs at two-yr. and four-yr. colleges that offer accredited associate, bachelor's or graduate degrees. "The accrediting agencies are perfectly capable of addressing those standards. We don't want the department regulating more than is absolutely necessary," says a senior VP at the American Council on Education. (Chronicle of Higher Education 13 Mar 98)