Seven Steps to a Successful School Closure

The following 7 Steps will assist you in properly closing your school (Main, branch or satellite). If you have any questions about the steps please contact the Bureau for Private Postsecondary Education 916-431-6959, option 5.

1. Notify the Bureau of your school's planned closure date
[CEC §94926] [Title 5, CCR §76240]
All institutions, including those exempt from Bureau regulation pursuant to the Code, shall do the following prior to closing:
(a) At least 30 days prior to closing, the institution shall notify the Bureau in writing of its intention to close and provide a closure plan. The closure plan shall include:
(1) The exact date and reason for the closure.
(2) The last date of instruction for each educational service or program.
(3) A list of students who were enrolled at any time during the 60 days prior to closure.
2. Teach-Out or Transfer of students [CEC §94926] [Title 5, CCR §76240]
The notice shall be accompanied by a closure plan, which shall include, but not necessarily be limited to, all of the following:
(a) A plan for providing teach-outs of educational programs, including any agreements with any other postsecondary educational institutions to provide teach-outs.
The Bureau must be notified within 30 days of your proposed Teach-Out to allow time for Bureau approval of the plan.
If a Teach-Out is not viable, the school should provide a list of transfer schools to the students and to the Bureau 30 days prior to any actual transfers. The list should provide the name and address of the school, including the contact person and telephone number.
3. Refunds to Students [CEC §94926, §94919, §94920, §94921, and §94927]
CEC §94926
(b) If no teach-out plan is contemplated, or for students who do not wish to participate in a teach-out, arrangements for making refunds within 45 days from the date of closure, or for institutions that participate in federal student financial aid programs arrangements for making refunds and returning federal student financial aid program funds.
4. Provide the Bureau the names and Addresses of students who were enrolled within 60 days prior to the school's closure
[Title 5, CCR 76240] Required Notices and Teach-Out Plan.
(3) A list of students who were enrolled at any time during the 60 days prior to closure.
The institution must also provide an accounting of how many students are enrolled at the time of the closure, as well as the number of programs in which they are enrolled and the number of students records that will be maintained.
5. Custodian of Records [CEC §94927.5] [Title 5, CCR §71310, §71920 and §71930]:
Institutions are required to maintain records for students enrolled in vocational (non-degree) educational programs and degree programs permanently.
The institution must provide to the Bureau, within 30 days prior to the school's closure, the name, address, and telephone number of its designated Custodian of Records.
6. If your institution receives Title IV funding, instruct your students to contact the lender for instructions on how to handle their financial aid under Title IV.
[CEC §94926]
(c) If the institution is a participant in federal student financial aid programs, it shall provide students information concerning these programs and institutional closures.
7. Copy of Letter to Students
[Title 5, CCR §76240]
To ensure compliance with the notification and refund requirements, please send a copy of the letter that you provide to students and a list of the students that received the letter to the attention of the Bureau's Closed School Unit at least 30 days prior to the school's closure date. The Bureau will review the content on the letter and recommend any changes necessary to remain in compliance.

6) A plan to notify students of their rights and options under the Act and this chapter.
(b) The institution shall notify the students of the following:
(1) If the institution is a participant in federal student financial aid programs, it shall provide students information concerning those programs and institutional closures.
(2) If any student will not be provided complete educational services or the educational program, information regarding the Student Tuition Recovery Fund and the Bureau's physical and Internet addresses

Note: Authority cited: Sections 94803 and 94877, Education Code. Reference: Sections 94874.5, 94909, 94911, 94926, 94927 and 94927.5, Education Code.

At any time during the Closure process, staff from the Bureau's Closed Schools Unit can meet with you and/or the school's students. The Bureau's participation and assistance can answer questions or alleviate any concerns you or the students may have about the closure process. The Bureau needs a minimum of 7 Days notification for this service.

For your convenience a voluntary Closed School form is provided.