OAR 583-030-0061: School Closures

(1) Schools must submit to the Commission for approval a closure plan with the submission of an initial or renewal application for degree program authorization outlining their process in the event of an abrupt or planned school closure. (2) If the school plans to discontinue a program and/or site currently available to Oregon residents, it shall notify the Commission immediately and submit alternative plans for program completion that are acceptable and approved by the Commission. (3) In the event that the school plans to close and discontinue all its operations in Oregon, the chief administrative officer of the school shall notify the Commission of the closure per Oregon Administrative Rule (OAR) 583-030-0042(6) by submitting a letter on school letterhead immediately by email. The notification shall include a written statement that all recruitment efforts, marketing, advertisement, and enrollment of new students will cease at the time of the closure announcement. (4) School staff shall meet with the Commission to review required closure procedures prior to notifying students and staff, and providing the Commission with the school’s communication and teach-out/transfer plans. (5) The school shall develop and submit a communication plan for Commission approval and complete the following tasks within a timeframe approved by the Commission: (a) Notify students who were enrolled at a minimum of 60 calendar days prior to the closure, or attended anytime during the academic year, with a written notice approved by the Commission. That notice must include: (A) The reason for the closure; (B) The last day of instruction for each program; (C) What procedures students are to follow to receive transcripts; (D) How students can submit a surety bond/letter of credit or refund claim; (E) What arrangements have been made for students to continue their education at no additional cost or undue transportation hardships, including agreements with other postsecondary schools. If teach-out options are not viable, the school must provide students with a list of possible transfer schools and contact information; (F) Links to federal financial aid, loan discharge information, and the link to the school’s closure website. If the school is a participant in federal student financial aid programs, it shall provide students with information concerning those programs and school closures. (b) Post closure information on the school’s website prior to student notification. The website shall include the following information: a copy of the closure notification letter; dates and contact information of institutional and programmatic accreditors; details on how to secure copies of official transcripts and diplomas, lists of teach-out partners and copies of articulation agreements or list of possible transfer options; links to catalogs and course syllabi; professional licensure and certification contacts; information on submitting tuition refund or surety bond claims, and links to USDE closed school student loan discharge; (c) Provide the Commission with school data provided in a format determined by the Commission within 14 calendar days, including: (A) Total number of students currently enrolled in each program of study; (B) List of all students currently registered or enrolled in a program of study at the Oregon location. The list shall include student name, contact information, student ID, educational program name, number of credits completed, number of credits remaining for program completion, start dates and estimated completion dates, and anticipated decisions regarding teach out options for each student, including i dentifying students receiving federal financial aid and GI Bill benefits; (C) Account ledgers for each student that includes clear and correct information about student charges, payments, source of each payment, and balance; (D) Procedures for disbursement of refunds and set a date no later than 30 calendar days from the last day of instruction to issue refund checks in the full amount for which students are entitled. (6) The school shall develop and submit a teach-out/transfer plan to the Commission that includes the following: (a) Timeline for the closure and last date of instruction (or close approximation of anticipated closing date); (b) Name and contact information of the person(s) who will be responsible for closing arrangements; (c) School contacts for student advising, records, and staff responsible for refunds and financial aid; (d) Name and contact information of the person(s) who will be responsible after the closure date; (e) Process for distributing transcripts that meets the following minimum requirements: (A) Distribute one unofficial and three official final transcripts to currently enrolled students or those that completed a term in the current academic year at no cost to the student by a date approved by the Commission but no later than 14 calendar days from the last day of instruction. (B) The school must provide all former students with a final official copy of their transcripts before transcripts are sent to the custodian of records. (C) After notification of a school closure, transcripts shall not be withheld for students still owing tuition or fees to the school, and all academic and financial holds shall be removed. (f) Teach-out and transfer plans approved by the Commission must fulfill the school’s educational obligations to its students and the school shall: (A) Maintain authorization until all students have completed the in-house teach-out or have transferred to other schools to complete their programs; (B) Identify transfer of credit issues and develop possible strategies to address type of accreditation, residency requirements, professional licensing skill assessment and remediation processes, and students with few remaining credits needed to complete their programs. Assistance to students that only require a few remaining credits for graduation shall be prioritized; (C) Ensure that the school's students will continue to receive education of the same quality and content as that for which they contracted; (D) Request an exception of OAR 583-030-0035(5)(a)(B) from the Commission reducing the amount of residential credit required for program completion as part of a teach-out/transfer plan or articulation agreement; (E) Submit copies of articulation and transfer agreements; (F) Submit a copy of the school’s institutional accrediting agency approval of the teach-out/transfer plan; (G) Provide student refunds of prepaid, unearned tuition and fees at the time of school closure if a teach-out or transfer of credit is not available. (g) Identification of the permanent custodian of records for transcripts and other student records pursuant to OAR 583-030-0044. (A) Schools and owners are responsible to arrange storage and the safekeeping of records. Pursuant to OAR 583-030-0035(14), transcripts are permanent and cannot be destroyed. (B) As approved by the Commission, the custodian of records will continue to issue transcripts on behalf of former students and may include another authorized school, a third-party credential service, or a corporate headquarters. (C) Institutions shall release academic and financial holds on student accounts before operation is discontinued and the records are transferred to the custodian of records. (D) Academic records shall include licensing and certification training files for verification of clinical sites, hours, and other documentation as needed for professional licensing or certification requirements. (E) If the Commission is designated as the custodian of record, final transcripts shall be submitted within 30 days prior to the school’s closure in an electronic format specified by the Commission. (F) The school shall submit a copy of student transcripts to the Commission when the permanent repository of the transcripts is not the Commission. (G) The school shall provide to the Commission a digital PDF copy of individual student transcripts, with filenames in a format directed by the Commission. (H) Pursuant to OAR 583-030-0044, the Commission may take possession of transcripts from a closing degree granting school, if the transcripts are determined to be in danger of destruction. (7) Schools that fail to comply with the above rules are subject to criminal penalties under ORS 348.992.