The relationship between the U.S. Department of Education's eligibility system and accreditation is discussed by the Secretary of Education, T. H. Bell. Because of the link between eligibility for federal funds and peer evaluation through accreditation, the Department has developed criteria and procedures to determine which national, regional, and specialized accrediting agencies are suitable for inclusion on the Secretary's list of recognized agencies. "Threshold" eligibility refers to the first stage of the Department's two-tier eligibility procedure, wherein institutions or programs are determined to meet statutory requirements concerning eligibility to apply for participation in the assistance programs. Provision is made in the law for special qualifying steps that may be taken as alternatives to accreditation, including the Three Institutional Certification Process. The Secretary is advised by the Advisory Committee on Accreditation and Institutional Eligibility. A program of periodic evaluation of the recognized agencies is also conducted to determine if they continue to comply with the criteria for recognition. (SW)