Information for Students Affected by a School Closure

The best option for students faced with a school closure is to continue their course of studies and obtain their certificate or degree. In most cases, this is accomplished by taking part in a teach-out. It might also mean a transfer to another school.

If continuing studies is not possible, students may consider other options, including discharge of their student loans, requesting a refund of tuition, or other compensation. However, selecting discharges or refunds will likely result in the loss of credits already earned.

Here are seven essential pieces of information for students faced with a school closure:

1. Teach-Out
Students may be able to complete their studies at the closing school or other schools. The Career Schools and Colleges program will work with the closing school and other schools in the area to explore whether a teach-out can be made available. A teach-out is intended to fulfill the contract between the closing school and the student. The teach-out will provide comparable training for which the students will pay only what remains to be paid on their contract.

2. Transfer
Students may be able to transfer credits to another school offering similar courses. They should contact other schools about transfer eligibility. For a list of schools approved by the Career Schools and Colleges program, students can visit our Web site. Students considering transfer may also want to visit the Texas Higher Education Coordinating Board Web site. Unlike a teach-out, the Career Schools and Colleges program will have no part in any arrangement that the student makes, and the new school will determine what courses the student will need to take and the charges.

3. Discharge of Loan
If students don't complete their studies or transfer and they've received a federally subsidized loan, they may be eligible to have the loan discharged. Students should contact their lender or the U.S. Department of Education at 1-800-4-FEDAID to obtain more information, including a loan-discharge application. If the Texas Guaranteed Student Loan Corporation guaranteed the loan, contact them at 1-800-845-6267 or via e-mail at cust.assist@tgslc.org.

4. School Refund
Students can make a written request for a refund of tuition from the school. The Career Schools and Colleges program investigates whether closing schools may have violated state law. If so, students may be eligible for a refund of all or part of tuition and other costs, such as book charges. More information on the refund policy for a particular school can be found in the school's catalog and/or enrollment agreement.

5. Tuition Trust Account
The Tuition Protection Fund was created by the Texas Legislature in 1989 to protect students of a licensed school from tuition loss if the school closes. As with bonds, the money available from the fund is limited, and may not provide full refunds. Again, students should ensure the Career Schools and Colleges program has the information needed to contact them by mail and/or telephone.

6. Transcripts and Other Records
Students seeking transcripts and other records from previously licensed closed schools should review the closed school list to determine whom to contact.

Additional Information

Closed School Guide - provided by the U.S. Department of Education.

Please contact your school or the Career Schools and Colleges program for more information.
Career Schools and Colleges contact information:

Mail:
Texas Workforce Commission
Career Schools and Colleges
101 East 15th Street
Austin, TX 78778-0001

E-mail:
closedschools@twc.state.tx.us

Phone:
(512) 936-3100

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