New York Codes, Rules and Regulations
Title 8 - EDUCATION DEPARTMENT
Chapter II - Regulations of the Commissioner
Subchapter F - Private Schools
Part 126 - Licensed Private Career Schools Or Licensed Private Schools
Section 126.18 - Online education marketplaces

(a) If a prospective student pays all or part of his/her tuition and/or fees to an online education marketplace in connection with such student's enrollment at a school, the prospective student and the school shall execute an enrollment agreement in accordance with section 126 .7 of this Part within 30 calendar days of receipt of such monies by the online education marketplace. If an enrollment agreement is not execute d within 30 calendar days, then the online education marketplace shall refund all monies received to such prospective student within 40 calendar days of receipt of such monies.

(b) If an enrollment agreement is executed within 30 calendar days of receipt of such monies, as described in subdivision (a) of this section, then the online education marketplace shall pay all monies it has received to the school with 10 calendar days of receipt of notification that an enrollment agreement has been executed. If the enrollment agreement is canceled pursuant to section 126.7(d)(9) of this Part, then the online education marketplace or school shall refund such monies to the student within 20 days of the cancellation of the agreement.

(c) An online education marketplace shall not receive from a prospective student an amount greater than the tuition or fees to be charged by the school to the student.

(d) An online education marketplace shall separately account for monies received from a prospective student for the payment of tuition or fees, and any remuneration and/or compensation received by the online education marketplace from a school in payment for services rendered to such school by the online education marketplace.

(e) A school shall also separately account for tuition or fees transferred to the school by an online education marketplace on behalf of a student in payment of tuition or fees, and any payments made by the school to an online education marketplace for services rendered to the school by the online education marketplace.

(f) Pursuant to section 5004(3)(b)(i)(5) of the Education Law, the Commissioner may take disciplinary action against an online education marketplace pursuant to section 5003 of the Education Law in accordance with the due process procedures set forth in subdivision (b) of section 126.14 of this Part, except that the Commissioner may impose any of the penalties set forth in section 5003 of the Education Law except those penalties set forth in subdivisions (6)(c)(3) and (6)(e) thereof.

(g) An online education marketplace is prohibited from offering advertising/marketing services to an unlicensed private career school or uncertified ESL school.