Rules & Regulations of the State of Tennessee
Title 1540 - Higher Education Commission
Chapter 1540-01-02 - Authorization and Regulation Of Regularly Authorized Postsecondary Educational Institutions
Section 1540-01-02-.03 - DEFINITIONS

(1) "Ability-to-benefit" or "ATB" as an adjective describes:

(2) "Academic" as an adjective describing a degree means a degree that is organized primarily for academic or professional training or transfer. Academic degrees include: Associate of Arts, Associate of Science, Bachelor of Arts, Bachelor of Business Administration, Bachelor of Science, Bachelor of Fine Arts, Master of Arts, Master of Divinity, Master of Science, Master of Fine Arts, Master of Business Administration, Doctor of Philosophy, Doctor of Psychology, and Doctor of Education.

(3) "Accreditation" is a non-governmental, peer evaluation of postsecondary educational institutions and programs by private educational associations that have adopted criteria for educational programs and have developed procedures for evaluating institutions or programs. The date of accreditation is the date applicable to a location and includes approval, recognition, or similar designation of a branch, satellite, instructional or other location descriptor used by an accreditor. These criteria determine whether or not institutions or programs are operating at basic levels of quality. The Commission only recognizes accrediting agencies that are recognized by the U.S. Department of Education.

(4) "Activities and operations" mean to operate, to grant, to offer, and the prohibited actions described in 49-7-2007.

(5) "Act" means the Tennessee Higher Education Authorization Act of 2016, T.C.A. §§ 49- 7 2001, et seq., as amended.

(6) "Adverse action" means action taken by the Executive Director or Commission to fine, limit, change, suspend, or cause to cease activity that is not compliant with the Act and these rules. Such adverse action includes fines of five hundred dollars ($500) per violation per day, suspension of activity, conditional authorization or program registration, or revocation of authorization or program registration.

(7) "Agent" means any person representing a postsecondary educational institution for payment, who solicits in any form and enrolls, or seeks to enroll, a student for education offered by an authorized institution, or offers to award educational credentials, for remuneration, on behalf of any such institution. Persons owning an interest in an institution and the institution's fulltime employees and directors shall not be considered agents under the Act.

(8) "Articulation and transfer of credit agreement" means an arrangement between two (2) higher education institutions that is approved and signed by authorized institutional representatives and constructed by faculty in the discipline that (1) equates for transfer of a defined set or block of academic credits that will meet requirements of a specified program at a degreeawarding institution or (2) provides that a specific credential from one (1) institution will meet the admission education requirement for a program leading to a higher credential at a second institution.

(9) "Associate degree" means a credential issued to students who complete a vocational or academic program or curriculum consisting of at least sixty (60) semester credit hours, ninety (90) quarter credit hours, or the equivalent.

(10) "Authorization" means approval of a postsecondary educational institution by the Commission for the institution to engage in activities or operations otherwise prohibited by T.C.A. § 49-72007. Authorization is for a specified time at a specified location. Institutions shall not use authorization to connote greater approval than simple permission to engage in allowed activities or operations. Terms which may not be used include, but are not limited to, "accredited by," "supervised by," "endorsed by," and "recommended."

(11) "Authorization site visit" means visit to a location by Commission staff or other industry representatives or subject matter experts to verify, review, inspect, or investigate as necessary to ensure a location or program is compliant with the Act and these rules.

(12) "Bachelor's degree" means a credential issued to students who complete a vocational or academic program or curriculum consisting of at least one hundred and twenty (120) semester credit hours, one hundred and eighty (180) quarter hours, or the equivalent.

(13) "Certificate program" generally means one (1) or more technical courses usually completed in one (1) to twenty-six (26) weeks, or up to and including five hundred (500) contact hours normally with a single skill objective. A program name or certificate credential should not include terms such as "certified," "registered," or "licensed" unless the postsecondary educational institution is recognized by a subject matter expert state or federal agency, board, or commission to award such a credential or recognized by a private company where the curriculum or product of the company is being taught, for example, Microsoft certifications.

(14) "Clock hour" has the same meaning as contact hour.

(15) "Closed enrollment" means instruction provided to a group or business by a postsecondary educational institution, whereby public solicitation does not occur and the institution is given a list of enrollees to train at no cost to the students.

(16) "College" means

(17) "Commission" means the Tennessee Higher Education Commission.

(18) "Completion rate" shall have the same meaning as "graduation rate," and shall mean the number of completions as a percentage of the number of students not currently enrolled minus the number of withdrawals due to special circumstances, that is, Completion Rate = Number of Completions/(Number Not Currently Enrolled - Special Circumstance Withdrawals) × 100.

(19) "Contact hour" means a sixty (60) minute period of time that contains at least fifty (50) minutes of actual directed or supervised instructional time.

(20) "Degree" means an educational credential from a postsecondary educational institution with the term associate, bachelor's, master's, specialist, or doctor in the credential designation.

(21) "Diploma program" means a program of instruction offering technical and some basic course work. General education courses may be included. Program requirements generally range from more than five hundred (500) contact hours to less than the requirements for an associate degree.

(22) "Distance learning" means a system and process that connects learners with distributed learning resources through delivery systems at a distance such as correspondence, video tape, audio tape, telecommunications, computer resources, computer network system or an electronic delivery system, where there is physical separation of the instructor and student.

(23) "Division of Postsecondary State Authorization" or "DPSA" means the office and Commission staff responsible for oversight of the Act and Rule Chapters 1540-01-02 and 1540-01-10.

(24) "Doctoral degree" means a credential issued to students who complete a program consisting of a bachelor's degree plus at least ninety (90) semester hours of graduate credit, one hundred and thirty-five (135) quarter hours of graduate credit, or the equivalent.

(25) "Enrollment" or "Enrolled" refers to those students who have attended one (1) session of class, turned in one (1) assignment, or received one (1) distance learning lesson.

(26) "Educational credentials" means degrees, diplomas, certificates, transcripts, reports, documents, or letters of designation, marks, appellations, series of letters, numbers or words which signify, purport or are generally taken to signify enrollment, attendance, progress or satisfactory completion of the requirements or prerequisites for education at a postsecondary educational institution.

(27) "Educational service" means any class, course or program of training, instruction or study.

(28) "Federal student financial aid programs" means any of the various loans or grants offered to students, parents, or institutions through Title IV of the Higher Education Opportunity Act, as amended.

(29) "Field Trip" means a congregation of students and instructors at a location in Tennessee for instruction in the subject of enrollment for not more than three (3) calendar days. Such field trips may not occur more than three (3) times a year in the same program.

(30) "General education courses" means a category of academic subjects that students are required to take prior to graduation outside of their major area of study or vocational concentration. These subjects are intended to broaden students' intellectual growth and cover topics including humanities, communication/language skills, social science, science, and quantitative and ethical reasoning.

(31) "Independent certified public accountant" means a certified public accountant not associated with the institution, its owners, or its affiliated businesses.

(32) "In-field placement rate" means the Number Placed In-Field as a percentage of number placeable, that is, In-Field Placement Rate = Number Placed In-Field/Number Placeable × 100.

(33) "Institutional director" means the individual designated by the institution to assume responsibility for ensuring that the conduct of the institution and its agents are within the Act and these rules.

(34) "License" or "Licensure" includes similar terms, such as registration and certification, and means a designation from a subject matter expert state agency, board, or commission indicating that the recipient has met certain requirements for obtaining the designation, for example, a licensed massage therapist or educator.

(35) "Location" means an address that may be used for purposes of a postsecondary educational institution in compliance with all pertinent ordinances and laws, including any rules and regulations adopted pursuant to the ordinances and laws, relative to zoning and the safety and health of persons at the address. When physical presence activities or operations are not the result of instruction at a postsecondary educational institution location as determined by the Commission staff, such as supervised field experiences or similar activities or operations, then the postsecondary educational institution location from which the educational credential is awarded must be the authorized location.

(36) "Master's degree" means a credential issued to students who complete a program consisting of a bachelor's degree plus at least thirty (30) semester credit hours, forty-five (45) quarter credit hours, or the equivalent.

(37) "Other fees" means fees, other than tuition, paid to the institution for housing, meals, or transportation or fees paid to the institution or third parties for products or services, including, but not limited to, fees paid for tangible goods, laboratory fees, technology fees, student activity fees, or graduation fees. Other fees may include, at the institution's discretion, optional fees, including post-program completion testing fees, if collected by the institution on behalf of a student.

(38) "Out-of-state institution" means an authorized postsecondary educational institution that maintains its primary campus in another state, but has a physical presence in Tennessee.

(39) "Ownership" and "Owner" mean:

(40) "Physical presence" means presence within the state of Tennessee for the purpose of conducting activity related to a postsecondary educational institution as given in T.C.A. § 497-2007. Physical presence as further outlined for purposes of authorization shall include but not be limited to:

(41) "Placement rate" means the number placed as a percentage of the number placeable, that is, Placement Rate = Number Placed/Number Placeable × 100.

(42) "Postsecondary educational institution" includes, but is not limited to, a school, college, university, or other type of entity offering educational credentials, instruction, educational services, or other activities as described in T.C.A. § 49-7-2007, primarily to persons who have completed or terminated their secondary education, or who are beyond the age of compulsory high school attendance, for the attainment of educational, professional, or vocational objectives. The terms "campus," "location," "postsecondary educational institution," and "institution" may be used interchangeably such that determinations made pursuant to the Act and these rules are made in regard to the specific location.

(43) "Primarily located" means:

(44) "Principal party" means an owner, executive board member, or institutional director.

(45) "Prospective student" means a student who has been accepted for attendance at an institution but who is not enrolled as defined in subparagraph (25) of this rule.

(46) "Quarter" is a period of instruction into which the academic year is divided. A quarter must consist of at least ten (10) weeks.

(47) "Quarter credit hour" means a measurement of scholastic attainment earned by receipt of instruction for one (1) quarter of one (1) classroom lecture hour per week, two (2) hours of laboratory experience per week, or three (3) hours of intern/externship experience per week, or the equivalent number of hours.

(48) "Refundable fees" means any fees charged by an institution to the student for a period of enrollment but excluding fees paid for (1) tangible goods retained by the student or (2) services provided in full to the student.

(49) "Residential course" means a course in which the student comes to an authorized location as opposed to a course where the student and the instructor are in different locations.

(50) "Semester" is a period of instruction into which the academic year is divided. A semester must consist of at least fifteen (15) weeks.

(51) "Semester credit hour" means a measurement of scholastic attainment earned by receipt of instruction during one (1) semester of one (1) classroom lecture hour per week, two (2) hours of laboratory experience per week, or three (3) hours of intern/externship experience per week or the equivalent number of hours.

(52) "Solicitation" means contact, written or verbal, on behalf of an institution for the purpose of supplying information in an attempt to enroll Tennessee residents.

(53) "Specialist degree" means an advanced master's degree or post-master's degree with requirements less than those required for a doctoral degree.

(54) "Supervised field experiences" means a student learning experience comprised primarily of the practical application of previously studied theories and skills, under the oversight of a supervisor, mentor, faculty member or other qualified professional who has a direct or indirect reporting responsibility to the institution where the student is enrolled, whether or not credit is granted. The supervised field experience is part of a program of study offered by the enrolling institution. Examples include, but are not limited to, practica, student teaching, clinical placements, or internships.

(55) "These rules" means all rules contained in Rule Chapter 1540-01-02.

(56) "Time to completion" means the total number of days from a student's start date until the completion date.

(57) "Tuition" means any fee involving the student, actually charged or tracked as a bookkeeping item for instruction provided. Pursuant to Rule .15(4) of these rules, all tuition charges must clearly indicate the period of enrollment for which the student is being charged, for example, if the program is a four (4) month program but the tuition charged is for one (1) month, the account statement might read "Tuition Charged for Month 1."

(58) "Tuition guaranty fund" means the tuition guaranty fund created by T.C.A. § 49-7-2018 and the related rules in Rule Chapter 1710-01-02.

(59) "Unearned tuition" means the dollar amount calculated pursuant to T.C.A. § 49-7-2018 and the related rules in Rule Chapter 1710-01-02.

(60) "University" means a postsecondary educational institution that provides facilities for teaching and research, offers academic undergraduate and graduate degrees at the baccalaureate and higher level, and is organized into largely independent colleges or schools offering undergraduate, graduate, and/or professional programs.

(61) "Vocational" in the description of a program or institution means that which is organized primarily for job entry or upgrading of job skills that would result in a new job title or position and is not intended for academic transfer.

(62) "Withdrawal rate" means the number of withdrawals minus the number of withdrawals due to special circumstances as a percentage of program enrollment, that is, Withdrawal Rate = (Number of Withdrawals - Special Circumstance Withdrawals)/Program Enrollment × 100.