You are on page 1of 3

Home FSA Portal Contacts What's

New Feedback Site Map
IFAP
FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)667.21
AsOfDate: 12/31/95

From the Compilation of Regulations through 12/31/95.

Sec. 667.21 State review standards.

(a) Each State participating under this part must
develop standards, in consultation with institutions in the State,
under which the SPRE reviews referred institutions. The State-
developed review standards must evaluate, with regard to a
referred institution--

(1) The extent to which the institution makes available
to its students and prospective students its catalogs, admission
requirements, course outlines, tuition-and-fee schedules, refund
policy, course cancellation policy, rules and regulations, and
enrollment agreement, if appropriate;

(2) Whether the institution's descriptions of its courses
and educational programs are accurate;

(3) Whether the institution has a method to assess that
a student has the ability to complete successfully the educational
program for which he or she applies;

(4) Whether the institution maintains and enforces
standards relating to satisfactory academic progress;

(5) Whether the institution maintains adequate student
and other records;

(6) Whether the institution complies with relevant
safety, and health standards, such as fire, building, and sanitation
codes;

(7) The extent to which the institution's financial and
administrative capacity is appropriate to its scale of operations,
and whether the institution maintains adequate financial and other
information to determine the adequacy of its financial and
administrative capacity;

(8) For an institution that the SPRE determines is at
financial risk, the adequacy of the institution's plans to provide for,
if the institution closes--

(i) Instruction to enrolled students; and

(ii) Retention of and access to academic and financial
aid records;

(9) If an institution provides a vocational program--

(i) Whether the tuition and fees charged for that
vocational program are excessive given the amount of money that
a student who successfully completes the program may
reasonably be expected to earn; and

(ii) Whether the vocational program provides students
with quality training that leads to useful employment in an
occupation recognized in that State. In making this evaluation,
one of the factors the SPRE shall consider is the appropriateness
of the length of the vocational program in terms of both the
number of days of instruction and the number of credit or clock
hours the program offers;

(10) The extent to which the institution provides to its
students relevant information regarding--

(i) Market and job availability for students in its
occupational, professional, and vocational programs; and

(ii) The relationship between the institution's educational
programs and State licensing standards for specific occupations;

(11) The appropriateness of the number of semester,
trimester, or quarter credit or clock hours required for the
completion of an educational program;

(12) The appropriateness of the length of 600-clock-hour
educational programs;

(13) Whether, and the extent to which, the actions of
any owner or shareholder of the institution, or any person
exercising control over the institution may adversely affect its
participation in a title IV, HEA program;

(14) The extent to which the institution's procedures for
investigating and resolving student complaints are adequate;

(15) The extent to which the institution's advertising
promotion, and student recruiting practices are appropriate;

(16) Whether the institution has a fair and equitable
refund policy; and

(17) The extent to which the institution's educational
programs are successful as measured by--

(i) The completion and graduation rates of the students
enrolled in those programs, taking into account the length of the
programs and the selectivity of the institution's admission policy
(for the purpose of this provision, a completion rate is the same
as a graduation rate);

(ii) The institution's withdrawal rate;

(iii) With respect to the institution's vocational and
professional programs, the placement rate of the institution's
graduates in occupations related to their educational programs,
with related programs and occupations determined by reference
to the NOICC Master Crosswalk;

(iv) Where appropriate, the rate at which the institution's
graduates pass licensure examinations; and

(v) The success of the institution's students who
express other completion goals, such as transferring to another
institution, obtaining full-time employment in their field of study, or
qualifying for military service, in meeting those goals.

(b) In developing the review standards in paragraph (a)
of this section, a State--

(1) May establish different standards for different types
or categories of institutions or educational programs;

(2)(i) Shall specify the records and information that a
referred institution would need to maintain to demonstrate to a
SPRE the institution's compliance with those standards; and

(ii) If a referred institution was not, before the institution
was referred, otherwise required to keep records relating to its
compliance with State review standards, and did not keep those
records, must allow the institution a reasonable period of time to
obtain those records to enable the institution to demonstrate its
compliance with the State standards;

(3) Except for standards regarding prospective students
in paragraph (a)(1) of this section, shall establish standards that
apply at least to all regular students;

(4) Shall quantify the standards described in paragraph
(a)(9)(i) and (a)(17)(i), (ii), (iii), and (iv) of this section by
establishing--

(i) Criteria under which a SPRE determines if the tuition
and fees charged by an institution for a vocational program are
excessive compared to the amount of money that a student who
successfully completes that program may reasonably be expected
to earn;

(ii) Acceptable completion and graduation rates of
students enrolled in educational programs offered by an
institution;

(iii) An acceptable withdrawal rate of students at an
institution;

(iv) With respect to an institution's vocational and
professional programs, an acceptable placement rate of the
institution's graduates in occupations related to their educational
programs; and

(v) An acceptable rate or rates at which the institution's
graduates pass licensure examinations; and

(5) Shall determine the extent to which it is appropriate
to base a State review standard on a related title IV, HEA
program standard or requirement or establish as the State's
review standard the comparable title IV, HEA program standard
or requirement.

(Authority: 20 U.S.C. 1099a-3)

(Approved by the Office of Management and Budget under the
control number 1840-0659)