New York Laws
Article 101 - Licensed Private Career Schools and Certified English as a Second Language Schools
5002 - Standards for Licensed Private Career Schools.

(1) criteria for admission, which shall provide that students at least
possess a high school diploma or its equivalent or demonstrate the
ability to benefit from the instruction, except that in the case of
students who do not possess a high school diploma or its equivalent,
certification of the students' ability to benefit from instruction shall
be provided to the commissioner as provided in paragraph c of this
subdivision;
(2) the standards and the methods of instruction;
(3) the equipment available for instruction with the maximum
enrollment that such equipment and physical plant will accommodate;
(4) the qualifications and experience of teaching and management
personnel;
(5) the form and content of the student enrollment agreement or
contract, provided that such agreement or contract shall be written in
the same language as that principally used in the sales presentation;
(6) the methods of collecting tuition;
(7) eligibility criteria for programs that will require licensure;
(8) the sufficiency and suitability of the resources available for the
support of such school; and
(9) counseling provided to students.
b-1. (1) Student loans or other financial aid funds received from
federal, state, or local governments or administered under the federal
student financial assistance programs governed by Title IV of the Higher
Education Act of nineteen hundred sixty-five, 20 U.S.C. section 1070 et
seq., as amended, must be collected and applied in the manner as
controlled by the applicable federal, state or local regulations.
(2) Student loans or other financial aid funds received from private
entities, including, but not limited to, banks, financing companies, and
other lending sources must be collected or disbursed in the following
manner:
(A) Loans or other financial aid payments for amounts of five thousand
dollars or less may be disbursed as a single disbursement, regardless of
course length.
(B) Loans or other financial aid payments for amounts greater than
five thousand dollars that reflect a class term of less than six months
shall have two equal disbursements. The disbursement schedule for such
loans or payments shall be as follows: one-half of the tuition amount
released initially, and the remainder released halfway through the
course term.
(C) Loans or other financial aid payments for amounts greater than
five thousand dollars that reflect a class term of greater than six
months, but less than twelve months must have three equal disbursements.
The disbursement schedule for such loans or payments shall be as
follows: one-third of the tuition amount released initially, the second
disbursement shall be released one-third of the way through the length

of the training, and the remainder released two-thirds of the way
through the course term.
(D) Loans of other financial aid payments for amounts greater than
five thousand dollars that reflect a class term greater than twelve
months shall have four equal disbursements. The disbursement schedule
for such loans or payments shall be as follows: one-quarter of the
tuition amount released initially, the second disbursement shall be
released one quarter of the way through the length of the training; the
third disbursement shall be released halfway through the length of the
training, and the remainder shall be released three-quarters of the way
through the training.
(3) No school may enter into any contract or agreement with or receive
any students loan or financial aid funds from private entities,
including, but not limited to, banks, financing companies, and any other
private lending sources unless the private entity has a disbursement
policy that, at a minimum, meets the requirements of subparagraph two of
this paragraph.
(4) The term private entity referenced in subparagraphs two and three
of this paragraph shall not be construed to include a friend or family
member of the student who is not in the routine business of providing
student loans or financial aid funds. The provision of such a loan or
fund by a private entity shall also not include the payment of the
student's tuition or fees by use of a credit card.
c. Notwithstanding any other provisions of this article to the
contrary, the commissioner shall define alternative educational and
curriculum standards for any program of less than forty hours designed
exclusively for non-occupational, personal enrichment purposes.
d. Admission of students under the ability to benefit provision.
(1) Certification. Each school admitting students who do not possess
at least a high school diploma or its equivalent shall certify to the
satisfaction of the commissioner that such prospective students have
been administered and passed an examination which has been approved by
the commissioner to determine their ability to benefit from the chosen
curriculum prior to admission to the curriculum or course of study. Such
examination shall, whenever possible, be a nationally recognized test
appropriate for the course of instruction which has been approved by the
commissioner. The examination results of each such student who is
admitted shall be made available to the commissioner at a time
prescribed by the commissioner and, together with the student's original
answer sheet, shall be maintained by the school in the student's
permanent record. For any student failing to achieve the necessary score
on such examination for enrollment, the school shall be required to
provide such student with a listing of appropriate counseling and
educational opportunities available to the student at no cost, as
determined by the commissioner. Where appropriate, the commissioner may
accept such other entrance requirement documentation such as
prerequisite coursework, professional or vendor certifications, personal
interviews, and/or attestations of equivalent knowledge in lieu of the
examination requirement.
(2) Counseling. Each school offering curricula which admit students
who do not possess a high school diploma or its equivalent shall develop
a plan to be approved by the commissioner for the counseling of such
students on an individual basis on matters including but not limited to
the student's ability to progress in the curriculum, the student's
financial aid rights and responsibilities, the availability of programs
to earn a high school equivalency diploma, including programs provided
at no cost to the student, and the potential of the training to prepare
the student for available employment opportunities within the region.
(3) Compliance. (A) The commissioner shall monitor compliance with
this paragraph and verify the examination and counseling process and
student examination scores. Such procedures may include but not be
limited to an annual, statistically significant, random sampling of the
examinations taken by prospective students of each school administering
such examinations.
(B) In the event that the commissioner determines that the school is
out of compliance with the examination process and counseling, the
commissioner shall require that examinations and counseling for students
admitted under the ability to benefit provision and the counseling
required by subparagraph two of this paragraph be conducted off the
premises of the school by an entity approved by the commissioner for
such period of time as the commissioner deems appropriate, the cost of
which shall be incurred by the school.
2. Inspections. a. Every school licensed pursuant to this article
shall maintain adequate and accurate records for a period of not less
than seven years at its principal place of business within this state.
Such records shall be maintained in a manner and form prescribed by the
commissioner and shall be made available to the department and the
higher education services corporation upon request.
b. In addition to other requirements in this article, the information
to be made a part of the record shall include, but not be limited to:
(1) names and addresses of each enrolled student;
(2) the course of study offered by the institution;
(3) the name and address of its faculty, together with a record of the
educational qualifications of each;
(4) the graduation date of each student; and
(5) for each student who fails to complete his or her program, the
student's last date of attendance and, if applicable, the amount of any
refund paid to, or on behalf of, the student and the date the refund was
made.
c. The commissioner shall conduct periodic unscheduled inspections of
licensed private career schools to monitor compliance with the
provisions of this article or the rules or regulations promulgated
thereunder or any final order or decision of the commissioner made
pursuant to this article. The department shall conduct an inspection of
each school at least once every licensure period. All schools shall
provide upon request of the department, any and all records necessary to
review compliance with the provisions of this article.
d. Student permanent records, as defined in the regulations of the
commissioner, shall be maintained for a period of twenty years.
3. Tuition liability. a. The tuition charge for programs approved for
participation in student financial aid general award programs pursuant
to articles thirteen and fourteen of this chapter shall be apportioned
on the basis of terms, quarters or semesters. For the purposes of this
section, the terms "term", "quarter" and "semester" shall be defined in
regulations by the commissioner.
b. The tuition refund policy for the first term or quarter of any
program at schools licensed pursuant to section five thousand one of
this article shall be as follows:
(1) For programs which are divided into quarters of up to fourteen
weeks, the school shall evenly divide the total tuition charges among
the number of quarters. After instruction is begun in a school, if a
student withdraws or is discontinued, the school may retain no more
than:
(i) zero percent of the quarter's tuition if the termination is during
the first week of instruction; or
(ii) twenty-five percent of the quarter's tuition if the termination
is during the second week of instruction; or
(iii) fifty percent of the quarter's tuition if the termination is
during the third week of instruction; or
(iv) seventy-five percent of the quarter's tuition if the termination
is during the fourth week of instruction; or
(v) one hundred percent of the quarter's tuition if the termination
occurs after the fourth week of instruction.
(2) For programs organized by terms of fifteen, sixteen, seventeen or
eighteen weeks apiece, the school shall evenly divide the total tuition
charges among the number of terms. After instruction is begun in a
school, if a student withdraws or is discontinued, the school may retain
no more than:
(i) zero percent of the term's tuition if the termination is during
the first week of instruction; or
(ii) twenty percent of the term's tuition if the termination is during
the second week of instruction; or
(iii) thirty-five percent of the term's tuition if the termination is
during the third week of instruction; or
(iv) fifty percent of the term's tuition if the termination is during
the fourth week of instruction; or
(v) seventy percent of the term's tuition if the termination is during
the fifth week of instruction; or
(vi) one hundred percent of the term's tuition if the termination
occurs after the completion of the fifth week of instruction.
c. (1) The tuition refund policy for the second term or quarter of any
program at schools licensed pursuant to section five thousand one of
this article shall be as follows:
(A) For programs which are divided into quarters of up to fourteen
weeks, the school shall evenly divide the total tuition charges among
the number of quarters. After instruction is begun in a school, if a
student withdraws or is discontinued, the school may retain no more
than:
(i) twenty-five percent of the quarter's tuition if the termination is
during the first week of instruction; or
(ii) fifty percent of the quarter's tuition if the termination is
during the second week of instruction; or
(iii) seventy-five percent of the quarter's tuition if the termination
is during the third week of instruction; or
(iv) one hundred percent of the quarter's tuition if the termination
occurs after the third week of instruction.
(B) For programs organized by terms of fifteen, sixteen, seventeen or
eighteen weeks apiece, the school shall evenly divide the total tuition
charges among the number of terms. After instruction is begun in a
school, if a student withdraws or is discontinued, the school may retain
no more than:
(i) twenty percent of the term's tuition if the termination is during
the first week of instruction; or
(ii) thirty-five percent of the term's tuition if the termination is
during the second week of instruction; or
(iii) fifty percent of the term's tuition if the termination is during
the third week of instruction; or
(iv) seventy percent of the term's tuition if the termination is
during the fourth week of instruction; or
(v) one hundred percent of the term's tuition if the termination
occurs after the completion of the fourth week of instruction.
(2) Notwithstanding the provisions of subparagraph one of this
paragraph, the tuition refund policy set forth in paragraph b of this

subdivision shall apply unless the school demonstrates that there are no
significant educational changes in the educational program of the
student, such changes as defined in regulations of the commissioner.
d. The tuition refund policy for the third and any subsequent term or
quarter of any program licensed pursuant to section five thousand one of
this article shall be the policy set forth in subparagraph one of
paragraph c of this subdivision.
e. No program shall have a term in excess of eighteen weeks.
f. The amount of the refund shall be calculated based on the last day
of student attendance.
g. (1) Any refund due to a student shall be paid by the school within
forty-five days of the date on which the student withdraws from the
program. For the purposes of this article, such date shall be the
earliest of (i) the date on which the student gives written notice to
the school or (ii) the date on which the student is deemed to have
withdrawn pursuant to subparagraph two of this paragraph.
(2) If a student has failed to attend classes for a period of thirty
calendar days, the school shall send by regular mail a notice to the
student that the student shall be deemed to have withdrawn from the
program if the student does not notify the school to the contrary within
twelve days from the date on which the letter is sent. If the student
fails to respond within such twelve-day period, the student shall be
deemed to have withdrawn and the school shall notify the higher
education services corporation that the student has withdrawn and the
date of the withdrawal.
h. Schools shall submit, for approval by the commissioner, the school
catalog with a weekly tuition liability chart for each program that
indicates the amount of refund due the student in the event of
withdrawal.
i. Upon payment of a refund to a lender, the school shall forthwith
send a notice to a person designated by the president of the higher
education services corporation upon a form approved by the president
that such refund was made.
j. If the higher education services corporation fails to receive the
notice required by paragraph i of this subdivision, it shall forthwith
notify the student of his or her right to a refund and the commissioner
of such failure. Upon receipt of such notification, the commissioner
shall take appropriate action against the school.
4. Curriculum approval. a. An application and fee shall be made for
the initial approval of a curriculum or course and shall include such
information as the commissioner may require by regulation. Approval
shall be valid for a period not to exceed four years. The application
fee for any curriculum of one hundred clock hours or more shall be two
hundred fifty dollars. The application fee for any course of less than
one hundred clock hours shall be one hundred dollars. Such application
fees shall accrue to the credit of the proprietary vocational school
supervision account.
b. In approving curriculum, the commissioner shall take into
consideration the following:
(1) that the entrance requirements demonstrate that students possess
the skills, competencies and prerequisite knowledge needed to progress
in the curriculum;
(2) that the content will enable the student to develop those skills
and competencies required for employment in the occupational area for
which the curriculum was developed;
(3) that the school will utilize appropriate instructional methods;
(4) that the instructional equipment used within the curriculum is
comparable to the equipment currently used by business or industry in
the occupational area for which the curriculum was developed; and
(5) that a curriculum may include instruction in English as a second
language at a beginning or basic level, provided such instruction shall
not constitute more than fifty percent of such program.
c. (1) If the evaluation of a particular course or facility requires
the services of an expert not employed by the department, the department
shall retain such expert at the school's expense in addition to the
application fees prescribed in paragraph a of this subdivision.
(2) If, in the interest of expediting the approvals, a school requests
the department to employ an outside consultant, the school shall pay the
cost of such services in addition to the application fees prescribed in
paragraph a of this subdivision.
d. The commissioner shall act on applications for approval of a course
or curriculum within one hundred twenty days of receipt of a complete
application and, in the case of a denial, shall set forth in writing the
reasons for such denial.
e. Notwithstanding paragraphs b, c and d of this subdivision,
curriculum certified by a nationally recognized vendor as defined in
commissioner's regulations shall be recognized by the department in lieu
of an expert evaluation when such curriculum is adopted by a school in
the original format provided by the vendor as long as the proposed
curriculum is a stand alone program and not part of a larger
comprehensive course.
f. Notwithstanding any other provision of the law, a not-for-profit
licensed career school, that is eligible for participation in the
tuition assistance program and which has national accreditation, may,
for the purpose of calculation of federal financial aid amounts only,
measure students' academic progress in an approved curriculum in
non-degree granting credit hours, based upon a national accrediting
agency's conversion and approval of clock hours to non-degree credit
hours. For the purposes of this paragraph, "national accreditation"
shall mean accreditation by a national accrediting agency as defined in
the commissioner's regulations.
5. Application for reapproval. a. An application and fee shall be made
for reapproval of a curriculum or course. Such application shall be
considered timely if submitted at least one hundred twenty days prior to
the expiration of the current approval. The application fee for any
curriculum of one hundred clock hours or more shall be two hundred fifty
dollars. The application fee for any course of less than one hundred
clock hours shall be one hundred dollars, provided that no fee shall be
assessed for the submission of a reapproval application without change.
Such application fee shall accrue to the credit of the proprietary
vocational school supervision account.
b. Curriculum reapproval standards. (1) The commissioner shall pre-
scribe by regulation, standards for reapproval after the first year of
licensure, of any curriculum or course based upon factors including but
not limited to the following, as appropriate:
(i) for each curriculum or course, the percentage of students who have
dropped out;
(ii) the acquisition of a specified minimum level of skills by the
students; and
(iii) for each curriculum or course, the percentage of students placed
in occupations related to the instruction, where applicable.
(2) Such standards shall be consistent with those applied to all
non-degree career education programs.

c. Reapproval contingency. Reapproval of a curriculum or course shall
be contingent upon a demonstration by the applicant that the curriculum
or course has met the curriculum reapproval standards set forth in this
subdivision. Except as otherwise provided in paragraph d of this
subdivision, no such curriculum or course or substantially similar
curriculum or course may be given without reapproval by the
commissioner.
d. When timely and complete application is made for the reapproval of
a curriculum or course, and no written denial is made thirty days prior
to the date of expiration of the existing approval, the curriculum or
course shall be deemed to be approved for the period of the curriculum.
If the application is denied, the commissioner shall set forth in
writing the reasons for such denial.
e. The commissioner may provide in regulations for reapproval
procedures, consistent with this subdivision, for applications submitted
less than one hundred twenty days from the expiration date.
f. The commissioner shall act upon enrollment agreements and catalogs
within ninety days of receipt, and, in the case of denial, shall set
forth in writing the reasons for such denial. If the commissioner fails
to act within ninety days, a catalog shall be deemed approved for one
year and an enrollment agreement shall be deemed approved until the
commissioner acts upon it.
6. a. Teachers and directors. No person shall be employed by a private
career school as a director or teacher who is not licensed in such
capacity by the department pursuant to regulations of the commissioner,
which shall take into consideration such factors as moral character,
educational qualifications and practical experience. The application
shall include a statement, signed by the president or chief executive
officer of the school, certifying that to the best of his or her
knowledge, the applicant is able to meet the educational qualifications
and practical experience set forth in the commissioner's regulations.
Such application shall be considered timely if mailed to the
commissioner and postmarked four days prior to employment at the school
and must be completed within twenty days thereafter; provided, however,
that the commissioner may, for good cause shown, extend the time within
which to complete the application. When a complete application is made,
the commissioner shall act upon such application within thirty days. If
no written denial is made within the thirty days, the application shall
be deemed to be approved until the commissioner acts upon it or until
the end of the term or semester, whichever occurs first. If a written
denial is made after the thirty day period, the commissioner may allow
the applicant to teach at the school for the remainder of the term or
semester if the commissioner determines that the removal of the teacher
would not be in the best educational interest of the students. This
subdivision shall not apply to directors or teachers employed on or
before July first, nineteen hundred seventy-two. Teachers' licenses
issued on or after the effective date of the chapter of the laws of two
thousand twelve which amended this paragraph shall be valid at all
licensed private career schools for the courses, curricula, or
occupations indicated on the license. Teachers holding valid private
school teacher licenses valid at only one school location shall have
them replaced, at no cost, with licenses valid at any licensed school in
the same subject or subjects and with the same expiration date as was
listed on the previous teaching license.
b. A school director shall have access to all student and school
records which shall be maintained in accordance with this article and
the regulations of the commissioner and shall make such records

available to the commissioner or the commissioner's designee upon
request during an on-site school inspection.
c. Notwithstanding paragraph a of this subdivision, a teacher who has
been certified as an instructor by a nationally recognized vendor as
defined in commissioner's regulations may be deemed qualified as an
instructor by the department, provided such teacher shall only provide
instruction in the course or courses for which he or she holds vendor's
certification. A teacher authorized by this paragraph will be subject to
all licensing fees required by the department for licensed teachers.
7. Advertising. a. The commissioner is authorized to commence a
disciplinary proceeding pursuant to this article for false, misleading,
deceptive or fraudulent advertising pursuant to regulations promulgated
by the commissioner which shall be consistent with article twenty-two-A
of the general business law. The department shall issue guidelines as to
appropriate advertising content. In developing such guidelines, the
department shall consider advertising for similar programs offered by
various educational institutions. In a disciplinary action or other
proceeding, such guidelines shall not be presumptive evidence that
particular advertising is appropriate.
b. Beginning on January first, two thousand, all schools shall include
in their advertising, promotional material, or letterhead the statement
"Licensed by the State of New York", and an accompanying symbol to
indicate such status, issued by the commissioner pursuant to section
five thousand nine of this article.
8. The higher education services corporation shall adopt rules and
regulations to effectuate the cessation of collection activities by
lenders or by the corporation in cases in which a licensed private
career school at which the student enrolled has closed or ceased its
teaching activities during the academic period for which the loan was
made or guaranteed.