Administrative Code

Virginia Administrative Code
5/6/2021

Part IX. Additional Regulations

8VAC40-31-250. Virginia law to apply to agreements.

The laws of Virginia shall govern any agreement, contract, or instrument of indebtedness executed between a postsecondary school and any person enrolling in any course or program offered or to be offered by a postsecondary school in Virginia and also between that postsecondary school and any person employed or offered employment by that postsecondary school in Virginia.

Statutory Authority

§ 23-276.3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006.

8VAC40-31-260. Fees.

A. All fees collected by council staff will be deposited in the State Treasury.

B. All fees are nonrefundable with the exception of withdrawal of an application in which case all fees will be refunded minus a nonrefundable administrative fee noted in subsection D of this section.

C. Fees must be paid with a company check and made payable to the Treasurer of Virginia.

D. The annual fee is based on the annual gross tuition received by each administrative branch of institutions certified to operate in Virginia. For out-of-state institutions certified to operate in Virginia, annual gross tuition means income generated from students enrolled at Virginia locations. The flat fee schedule is as follows:

New school orientation session, per person

$150

Initial fee for all new institutions of higher education

$6,000

Initial fee for all new career-technical schools

$2,500

Annual fee for all unaccredited institutions of higher education

$6,000

Renewal fee for all postsecondary schools with an annual gross tuition collected less than $50,000, as recorded on most recent financial statement

$250

Renewal fee for all postsecondary schools with an annual gross tuition collected greater than or equal to $50,000 but less than $100,000, as recorded on most recent financial statement

$1,000

Renewal fee for all postsecondary schools with an annual gross tuition collected greater than or equal to $100,000 but less than $500,000, as recorded on most recent financial statement

$2,500

Renewal fee for all postsecondary schools with an annual gross tuition collected greater than or equal to $500,000 but less than $1,000,000, as recorded on most recent financial statement

$4,000

Renewal fee for all postsecondary schools with an annual gross tuition collected greater than or equal to $1,000,000, as recorded on most recent financial statement

$5,000

Returned check fee

$35

Initial or renewed exemption application/request for name acknowledgement/agent registration

$300

Nonrefundable administrative fee (withdrawal of application)

$500 career-technical, $1000 institutions of higher education

Request duplicate certificate to operate due to school name or address change

$100

Request duplicate agent permit, to replace lost/stolen/misplaced permit

$100

Application fee for each additional site

$100

Application fee for each additional program or modification to an existing program

$100

E. A school that submits a payment that is returned for any reason must resubmit the required payment, any applicable late fee, and the assessed returned check fee of $35 via a money order or certified bank check only.

Statutory Authority

§§ 23-9.6:1 and 23-276.3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006; amended, Virginia Register Volume 30, Issue 8, eff. February 3, 2014; Volume 32, Issue 17, eff. June 3, 2016.

8VAC40-31-270. Receipt of applications, correspondence and other materials.

A. All applications, forms, letters or other materials relating to, or required by this chapter should be sent to:

State Council of Higher Education for Virginia

ATTN: Private and Out-of-State Postsecondary School Certification

James Monroe Building, 9th Floor

101 North Fourteenth Street

Richmond, Virginia 23219

B. The mail of items specified in subsection A of this section shall not constitute receipt of them by the council unless sent by registered or certified mail, return receipt requested.

Statutory Authority

§ 23-276.3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006.

8VAC40-31-280. Closure of a postsecondary school.

A. The council, on its own motion, may authorize a postsecondary school whose application for certification to operate is denied in accordance with 8VAC40-31-200 to continue to offer instruction to all currently enrolled students until the end of the semester, quarter, or other academic term during which certification is denied.

B. The council, on its own motion, may authorize a school whose certification is revoked in accordance with 8VAC40-31-200 to offer the coursework necessary for all currently enrolled students to complete their programs and to award degrees, certificates or diplomas to those students, provided that the school:

1. Offers coursework only to those students who were enrolled at the time the school's certification was revoked; and

2. Offers all necessary coursework on a schedule that permits all currently enrolled students to complete their programs in a reasonable period of time.

C. When a school decides to voluntarily cease operations, it must immediately inform the council of the following:

1. The planned date for the termination of operations.

2. The planned date and location for the transfer of student records.

3. The name and address of the organization to receive and manage the student records and the name of the official who is designated to manage transcript requests. The organization designated for the preservation of the student records may not be corporately connected to the closing school. The council may receive student records, subject to subsection D of this section, if an appropriate depository has not been established.

4. Arrangements for the continued education of currently enrolled students via teach-out agreement or other practical solution. The teach-out plan shall consist of, but not be limited to, the following:

a. Identification of the school's official date of closure;

b. A listing by program of students enrolled at the time of the school's closure including addresses, telephone numbers, and estimated graduation dates for each student;

c. The status of all current refunds due and balances owed;

d. A listing of those students who had prepaid for any portion of their training and a calculation of the total amount that was prepaid by each student;

e. Signed agreement with one or more local educational institutions able to provide adequate education to all students in all programs; and

f. Procedures for awarding graduates their certificates, diplomas, or degrees.

5. A listing of all former students, including full name, last known mailing address, email address, program of study, dates of enrollment, date of completion, and credential awarded, if applicable.

D. In the event of school closure or revocation of certification, the school shall make provisions for transferring all official records of students to the council office, or secure a location that will maintain the records permanently, notify all students of this location and how they may obtain official copies. The records transferred to the council office, or other depository, shall include the academic records of each student, which should include:

1. Academic transcripts showing the basis of admissions, transfer credits, courses, credits, grades, graduation authorization, and student name changes for each student;

2. Transcripts of financial aid for each student, if maintained;

3. Foreign student forms for foreign students;

4. Veterans Administration records for veterans;

5. Copies of degrees, diplomas, and certificates awarded, if maintained;

6. One set of course descriptions for all courses offered by the school; and

7. Evidence of accreditation, if any, during the years covered by transcripts.

E. The school shall notify all enrolled students of the pending closure immediately, describing their financial obligations as well as their rights to a refund or adjustment, and provisions made for assistance toward completion of their academic programs, whether in the institution that is closing, or by contract with another institution or organization to teach out the educational programs. Such agreements must be approved by the council.

F. The council shall seek the advice of the Career College Advisory Board on matters relating to closures of its member schools.

Statutory Authority

§ 23-276.3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006; amended, Virginia Register Volume 30, Issue 8, eff. February 3, 2014.

8VAC40-31-290. Waiver by council.

The council may waive or modify the certification requirements for an accredited school if the council finds that such waiver or modification will not conflict with the intent of the regulations and that in light of the school's mission, literal application of such requirement(s) creates an unreasonable hardship on the school.

Statutory Authority

§ 23-276.3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006.

8VAC40-31-300. (Repealed.)

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006; repealed, Virginia Register Volume 30, Issue 8, eff. February 3, 2014.

8VAC40-31-310. Student Tuition Guaranty Fund.

A. The executive director shall appoint in writing a Director of the Student Tuition Guaranty Fund.

B. The purpose of the fund is to reimburse tuition due students at schools certified to operate when the school ceases to operate.

C. Schools seeking initial certification after July 1, 2004, shall not be required to pay into the fund. All other schools that were certified to operate prior to July 1, 2004, under the provisions of § 22.1-321 of the Code of Virginia, shall be subject to the provisions valid at the time of its recertification.

D. A claim shall be made against the fund only if it arises out of the cessation of operation by a school at which the student was enrolled or was on an approved leave of absence at the time of the closure and the closure prevented the student from completing the program of study for which he enrolled on or after July 1, 2004. Claims shall be filed with the director of the fund on forms prescribed by the council within three years after cessation of operation by the school. Claims filed after that period shall not be considered. Claims shall be limited to the unearned tuition paid to the closing institution for which the student received no educational instruction.

E. The director will attempt to secure a teach-out agreement as outlined in 8VAC40-31-280 C 4 prior to issuing a refund of the unearned tuition to a student unable to complete a program of study due to a school closure. If a teach-out agreement cannot be secured, the director shall proceed with a claim against the closed school's surety instrument.

F. The executive director shall administer the fund upon the following basis:

1. The assets of the fund may not be expended for any purpose other than to pay bona fide claims made against the fund;

2. All payments into the fund shall be maintained by the state comptroller who shall deposit and invest the assets of the fund in any savings accounts or funds that are federally or state insured, and all interests or other return on the fund shall be credited to the fund;

3. Payment into the fund shall be made in the form of a company or cashier's check or money order made payable to the "Student Tuition Guaranty Fund."

G. When a claim is allowed by the director, the executive director, as agent for the fund, shall be subrogated in writing to the amount of the claim and the executive director shall thereby be authorized to take all steps necessary to perfect the subrogation rights before payment of the claim. Refunds will be made, first, to the lender issuing student financial aid or the guarantor of the loan, and second, to the student. In the event no financial aid was involved, then refunds will be made to the student.

Statutory Authority

§ 23-276.3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006; amended, Virginia Register Volume 30, Issue 8, eff. February 3, 2014.

8VAC40-31-320. Agent registration.

A. Agents representing one or more noncertified accredited postsecondary schools must:

1. Register with the council prior to soliciting in Virginia; and

2. Pay an annual fee of $300 per school represented.

B. Agents representing noncertified unaccredited postsecondary schools shall not conduct business in Virginia.

C. Agents operating instructional sites in Virginia must seek council certification.

D. Agent permits expire on December 31 of each calendar year. An application for an agent permit renewal must be submitted to council staff at least 60 days prior to the expiration date.

E. Refusal by an agent to display his agent's permit upon request of a prospective student, council staff member, or other interested person may result in the revocation of the agent permit.

Statutory Authority

§ 23-276.3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 22, Issue 23, eff. August 24, 2006; amended, Virginia Register Volume 30, Issue 8, eff. February 3, 2014.

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