Section 20.17.117. Closure of institution or cessation or change of program.

	(a)  A vocational institution shall provide enrolled students at least 60 days' written notice of impending closure of the institution, cessation of a program, or substantial changes in a program of the type listed in (b) of this section. A collegiate institution shall provide enrolled students at least one complete academic year's notice of impending closure of the institution, cessation of a program, or substantial changes in a program of the type listed in (b) of this section. At the same time as it is required to notify students, the vocational or collegiate institution shall provide the commission with a copy of the written notice.  
	(b)  No later than 30 days after an institution closes or ceases offering a program in which a student is enrolled, the institution shall provide full refunds of all tuition and other expenses paid to the institution by the student or other funding source on behalf of the student, unless it is able to provide a student with an alternative program, approved by commission staff, that is substantially equivalent as to  
		(1) program content;  
		(2) quality of instruction and equipment;  
		(3) period of program;  
		(4) accreditation status;  
		(5) credentials;  
		(6) accessibility;  
		(7) placement assistance;  
		(8) facility; and  
		(9) location, as compared to the location of the student's current institution.  
	(c)  The refund requirement of (b) of this section does not apply to that portion of a program that the student has completed and for which the student has received academic credit that is transferable to a like institution with a program that meets the requirements of (b)(1) - (9) of this section for substantial equivalence.  
	(d)  Subsections (a) - (c) of this section apply to an institution even if the closure or cessation of a program occurs without fault of the institution.  
	(e)  An institution may not enroll a student into a program if it reasonably expects that the student will be unable to complete the program because of impending closure of the institution or cessation of the program. In addition to other penalties and requirements that may apply, an institution is subject to a civil fine of $1,000 for each student enrolled in violation of this subsection and to a civil fine of $1,000 for each day that the institution offers enrollment in violation of this subsection.  
	(f)  An institution that does not provide the required 60 days' or one complete academic year's written notice required in (a) of this section shall  
		(1) make the refunds described in (b) of this section, regardless of whether an alternate program is available, if the student chooses to seek a refund rather than enroll in the alternate program;  
		(2) refund student costs incurred to attend the institution that the student documents would not have been incurred had the institution provided the required notice, including student travel and relocation costs;  
		(3) refund the costs of any coursework that is determined not to apply toward a student's same degree at a new institution, if the student  
			(A) elects to complete the program of study at another institution; and  
			(B) begins no later than six months after the closure of the current institution or cessation of the current program; and  
		(4) provide the student's new institution with a financial aid payment equivalent to the amount of any institutional scholarship, aid, or discounts promised to the student in exchange for enrollment at the institution that is closing or ceasing to offer a program, if the student  
			(A) elects to complete the program of study at another institution;  
			(B) begins no later than six months after the closure of the current institution or cessation of the current program; and  
			(C) would otherwise have met the conditions for award.  
	(g)  An institution that has been found by the commission to be financially unsound shall clearly and conspicuously disclose that finding to all students and applicants and provide information on how to contact the commission for more information.  

Authorities

14.48.050;14.48.060;14.48.190

Notes

Authority

AS 14.48.050 AS 14.48.060 AS 14.48.190

History

Eff. 4/24/98, Register 146; am 4/20/2000, Register 154; am 12/29/2010, Register 196