Oregon Administrative Rules › Chapter 715 - HIGHER EDUCATION COORDINATING COMMISSION › Division 45 - PRIVATE CAREER SCHOOLS › Section 715-045-0029 - Tuition Protection Fund

Current through Register Vol. 63, No. 7, July 1, 2024
(1) There shall
			 be a fund known as the Private Career School Tuition Protection Fund (as
			 described in ORS 345.110). The Tuition Protection
			 Fund is hereby established in the custody of the State Treasurer. The Executive
			 Director of the Higher Education Coordinating Commission shall deposit in the
			 fund all monies received under this rule. Monies from the fund shall be spent
			 only for the purposes under this rule. Disbursements from the fund shall be on
			 authorization from the commission and no appropriation is required for such
			 disbursements. All earnings on investments of the fund shall be credited to the
			 fund. To be and remain licensed, each private career school authorized in
			 accordance with the provisions of ORS Chapter 345 shall pay to the state an
			 initial capitalization deposit and 14 semiannual payments. The fund shall be
			 initially capitalized at a minimum of $200,000 and shall achieve and maintain
			 an operating balance of at least $1 million. Said fund is intended to be a fund
			 of last resort.
(2) Purpose of the
			 fund:
(a) Students attending schools licensed
			 by the State of Oregon, other than students covered by another state's tuition
			 protection, may apply to the commission, when a school ceases to provide
			 educational services, for a refund of tuition from the fund established
			 pursuant to this rule to the extent that such fund exists or has reached the
			 level necessary to pay outstanding approved claims. The liability of the fund
			 for claims against the school shall not exceed the total amount of the
			 liability limit assigned to the school under subsection (3)(a) of this rule.
			 Such limitation on each school's liability remains unchanged by single or
			 cumulative disbursements made on behalf of the school. If the commission's
			 executive director finds that a student is entitled to a refund of tuition, the
			 executive director shall determine the amount of refund based on criteria
			 established by the commission;
(b)
			 The commission shall direct the State Treasurer to pay the refund on behalf of
			 the student to the student and/or the student's financial sponsor(s). If the
			 student is a minor, payment shall be made to the student's financial
			 sponsor(s). Each recipient of a tuition refund shall, as a condition for
			 receiving the claim, assign all rights to the commission of any action against
			 the school or its owner(s) for tuition amounts reimbursed pursuant to this
			 section;
(c) Upon such assignment,
			 the executive director shall take appropriate action against the school or its
			 owner(s) in order to reimburse the Tuition Protection Fund for any expenses or
			 claims that are paid from the fund and to reimburse the commission for the
			 reasonable and necessary expenses in undertaking such action;
(d) The executive director shall attempt to
			 recover from the school all funds disbursed from the Tuition Protection Fund
			 and other costs of recovery;
(e)
			 The Tuition Protection Fund shall not be used to reimburse private party
			 attorney fees;
(f) Under no
			 circumstances will any party, person or entity, other than the commission, be
			 allowed to access funds from the Tuition Protection Fund; and
(g) No liability accrues to the State of
			 Oregon from claims made against the fund.