### Question
Can you define what applicable educational institution means?


### Answer
**Applicable educational institution** is defined as the following in *26 U.S.C. § 4968*:

> an eligible educational institution (as defined in section 25A(f)(2))—


(A) which had at least 500 tuition-paying students during the preceding taxable year,


(B) more than 50 percent of the tuition-paying students of which are located in the United States,


(C) which is not described in the first sentence of section 511(a)(2)(B) (relating to State colleges and universities), and


(D) the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $500,000 per student of the institution

#### Citation:
  - *26 U.S.C. § 4968*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter H-Excise Tax Based on Investment Income of Private Colleges and Universities**

