Current through Register Vol. 48, No. 38, September 20, 2024
a) Notice Required
A school that is closing, either voluntarily or
involuntarily, shall send to the Board the following:
1) Notice of the closure immediately by
certified mail;
2) The name,
address and telephone number of the person who will be responsible for closing
arrangements;
3) The name, address
and telephone number and the name of the course of instruction for each student
who has not completed his or her course of instruction;
4) Information on the amount of class time
left for each student, to complete the course, with the amount of refund, if
any, for which each student is eligible;
5) Copies of the written notice being mailed
to all enrolled students, explaining the procedures they are to follow to
secure refunds or to continue their education; and
6) Its permit of approval, returned
immediately by mail upon cessation of instruction or termination of approved
status.
b) Teach-Out
Plan
When a postsecondary educational institution now or
hereafter operating in this State proposes to discontinue its
operation, that institution shall cause to be created a
teach-out plan acceptable to the Board, which shall fulfill the school's
educational obligations to its students. Should the school fail to deliver or
act on the teach-out plan, the Board is in no way responsible for providing the
teach-out. (Section 70 of the Act)
1) A school shall have written plans designed
to protect the contractual rights of its students and graduates in the event
the school closes or undergoes a change of status (e.g., if the school changes
location or if its permit of approval is revoked), including the right to
complete the course of instruction in which the students or graduates
enrolled.
2) If students are
receiving instruction prior to the school's closing, the school shall file a
plan including the information described in subsection (b)(2)(A) with the Board
to ensure that the school's students will continue to receive training of the
same quality and content as that for which they contracted, as indicated in
subsection (b)(2)(B).
A) Arrangements for
transferring students to a public or another approved private school shall be
filed with the Board prior to any student transfer.
B) Prior to approving the school's
arrangements for completing its teaching obligations to students, the Board
shall verify that students transferring will receive the same kind of program
and instructional services as those for which they contracted.
c) Academic Records
In the event a school proposes to discontinue its
operations, the chief administrative officer of the school shall cause to be
filed with the Board the original or legible true copies of all such academic
records of the institution as may be specified by the Board. (Section
70 of the Act)
1) Academic records
include applications for enrollment and supporting documents, enrollment
agreements, transcripts and attendance records.
2)
These records shall include, at a
minimum, the academic records of each former student that is traditionally
provided on an academic transcript, such as, but not limited to, courses taken,
terms, grades, and other such information. (Section 70 of the
Act)
3)
In the event it
appears to the Board that any such records of an institution discontinuing its
operations is in danger of being lost, hidden, destroyed, or otherwise made
unavailable to the Board, the Board may seize and take possession of the
records, on its own motion and without order of court. (Section 70 of
the Act)
4)
The Board shall
maintain or cause to be maintained a permanent file of records coming into its
possession. (Section 70 of the Act)
5)
As an alternative to the deposit
of records with the Board, the institution may propose to the Board a plan for
permanent retention of the records that may include the transfer of
records to a similar institution. The plan must be put into effect only
with the approval of the Board. (Section 70 of the Act)
6) If the institution is in possession of any
record or material, paper or electronic, that is not an academic record but
contains personal information, a term that is defined by Section 5 of the
Illinois Personal Information Protection Act [ 815 ILCS 530 ], the institution
must retain a document or material destruction company to destroy those
documents or materials, if permitted by the Family Educational Rights and
Privacy Act (
20 USC
1232g) , in accordance with Section 40 of the
Illinois Personal Information Protection Act.
7) If, pursuant to the federal Family
Educational Rights and Privacy Act, the institution is required to retain any
record or material that is not an academic record but contains personal
information, a term that is defined by the Illinois Personal Information
Protection Act, that institution must retain those records or materials in
accordance with Section 45 of that Act.
8) The institution must send to the Board,
the Illinois Attorney General's Office - Privacy Unit, and the Department of
Education designee a certification that it has complied with its obligations
under the federal Family Educational Rights and Privacy Act and the Illinois
Personal Information Protection Act with respect to both academic records and
non-academic records or materials that contain personal information. The Board
will provide the form for certification after the institution has received a
Permit of Approval.
9) If a State
or federal law requires an institution to provide greater protections to
records or materials that contain personal information, and the institution is
in compliance with the provisions of that State or federal law, the institution
shall be deemed to be in compliance with Section 45 of the Illinois Personal
Information Protection Act.
10) A
violation of the Illinois Personal Information Protection Act constitutes an
unlawful practice under the Illinois Consumer Fraud and Deceptive Practices Act
[ 815 ILCS 505 ].
d)
Refund Requirements
1) The school shall
refund all tuition, fees and other charges if the Board, in any situation in
which students are receiving instruction prior to a school's closing,
determines that:
A) The school has not
fulfilled its contractual obligations; or
B) A student has reasonable objections to
transfer resulting from the closing.
2)
The school and its designated
surety bonding company are responsible for the return to students of all
prepaid, unearned tuition. As identified in Section 55 of the
Act, the surety bond must be a written agreement that provides for
monetary compensation in the event that the school fails to fulfill its
obligations. The surety bonding company shall guarantee the return to the
school's students and their parents, guardians, or sponsors of all prepaid,
unearned tuition in the event of school closure. Should the school or its
surety bonding company fail to deliver or act to fulfill the obligation, the
Board is in no way responsible for the repayment or any related damages or
claims. (Section 70 of the Act) (See Section
1095.210 for
requirements of the surety bond.)
e) Transcript Requests
1) The Board is the custodian of records for
student transcripts from closed private business and vocational schools that
have turned over their student records to the Board.
2) The Board shall maintain a list of the
private business and vocational schools that have closed and will publish the
list on the Board website (www.ibhe.org).
3) A student who attended a Board-approved
school that has since closed shall use the transcript request form and
procedure developed by the Board along with the applicable fees.
4) The fee for a student transcript is $10
per copy and shall be submitted as check, certified check, cashier's check or
money order payable to the Illinois Board of Higher Education.
5) Fees shall be submitted to:
Illinois Board of Higher Education
Division of Private Business and Vocational Schools
1 N. Old State Capitol Plaza, Suite 333
Springfield IL 62701