Section 16 of chapter 15A of the General Laws is hereby amended by adding at the end thereof the following paragraph:- 

No state scholarship funds under this section, any other section of this chapter, or other state student financial aid however provided, shall be made available to, or on behalf, of any student enrolled in any postsecondary educational institution which the board of higher education determines does not meet the requirements of this paragraph.   To meet the requirements of this paragraph, a postsecondary educational institution shall demonstrate to the board that it has: (a) graduation rates of not less than 30% for undergraduate students taking 150% or less of the expected time to complete degree requirements, as most recently reported by the U.S. Department of Higher Education, provided, that graduation rates shall include students who transfer; or (b) an average 3 year cohort default rate that is not more than 20%, as most recently reported by the U.S. Department of Education.  The board of higher education shall promulgate rules and regulations to implement this paragraph including, but not limited to, procedures and processes for annually determining which postsecondary educational institutions meet the requirements of this paragraph, and a process for an institution to appeal a determination that they do not meet the necessary requirements.  The board of higher education shall annually post a list of institutions that meet the requirements of this paragraph on the department of higher education’s website.