Office of Postsecondary Education - U.S. Department of Education

Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Rules and Regulations66959WReier-Aviles on DSKGBLS3C1PROD with RULES2Misrepresentation: Any false,erroneous or misleading statement aneligible institution, one of itsrepresentatives, or any ineligibleinstitution, organization, or person withwhom the eligible institution has anagreement to provide educationalprograms, or to provide marketing,advertising, recruiting or admissionsservices makes directly or indirectly toa student, prospective student or anymember of the public, or to anaccrediting agency, to a State agency, orto the Secretary. A misleading statementincludes any statement that has thelikelihood or tendency to deceive orconfuse. A statement is anycommunication made in writing,visually, orally, or through other means.Misrepresentation includes thedissemination of a student endorsementor testimonial that a student gives eitherunder duress or because the institutionrequired the student to make such anendorsement or testimonial toparticipate in a program.Prospective student: Any individualwho has contacted an eligibleinstitution for the purpose of requestinginformation about enrolling at theinstitution or who has been contacteddirectly by the institution or indirectlythrough advertising about enrolling atthe institution.Substantial misrepresentation: Anymisrepresentation on which the personto whom it was made could reasonablybe expected to rely, or has reasonablyrelied, to that person’s detriment.(Authority: 20 U.S.C. 1094)§ 668.72 Nature of educational program.Misrepresentation concerning thenature of an eligible institution’seducational program includes, but is notlimited to, false, erroneous ormisleading statements concerning—(a) The particular type(s), specificsource(s), nature and extent of itsinstitutional, programmatic, orspecialized accreditation;(b)(1) Whether a student may transfercourse credits earned at the institutionto any other institution;(2) Conditions under which theinstitution will accept transfer creditsearned at another institution;(c) Whether successful completion ofa course of instruction qualifies astudent—(1) For acceptance to a labor union orsimilar organization; or(2) To receive, to apply to take or totake the examination required toreceive, a local, State, or Federal license,or a nongovernmental certificationrequired as a precondition foremployment, or to perform certainfunctions in the States in which theeducational program is offered, or tomeet additional conditions that theinstitution knows or reasonably shouldknow are generally needed to secureemployment in a recognized occupationfor which the program is represented toprepare students;(d) The requirements for successfullycompleting the course of study orprogram and the circumstances thatwould constitute grounds forterminating the student’s enrollment;(e) Whether its courses arerecommended or have been the subjectof unsolicited testimonials orendorsements by—(1) Vocational counselors, highschools, colleges, educationalorganizations, employment agencies,members of a particular industry,students, former students, or others; or(2) Governmental officials forgovernmental employment;(f) Its size, location, facilities, orequipment;(g) The availability, frequency, andappropriateness of its courses andprograms to the employment objectivesthat it states its programs are designedto meet;(h) The nature, age, and availability ofits training devices or equipment andtheir appropriateness to theemployment objectives that it states itsprograms and courses are designed tomeet;(i) The number, availability, andqualifications, including the trainingand experience, of its faculty and otherpersonnel;(j) The availability of part-timeemployment or other forms of financialassistance;(k) The nature and availability of anytutorial or specialized instruction,guidance and counseling, or othersupplementary assistance it will provideits students before, during or after thecompletion of a course;(l) The nature or extent of anyprerequisites established for enrollmentin any course;(m) The subject matter, content of thecourse of study, or any other fact relatedto the degree, diploma, certificate ofcompletion, or any similar documentthat the student is to be, or is, awardedupon completion of the course of study;(n) Whether the academic,professional, or occupational degree thatthe institution will confer uponcompletion of the course of study hasbeen authorized by the appropriate Stateeducational agency. This type ofmisrepresentation includes, in the caseof a degree that has not been authorizedby the appropriate State educationalagency or that requires specializedaccreditation, any failure by an eligibleVerDate Mar2010 14:10 Oct 28, 2010 Jkt 223001 PO 00000 Frm 00129 Fmt 4701 Sfmt 4700 E:\FR\FM\29OCR2.SGM 29OCR2institution to disclose these facts in anyadvertising or promotional materialsthat reference such degree; or(o) Any matters required to bedisclosed to prospective students under§§ 668.42 and 668.43 of this part.(Authority: 20 U.S.C. 1094)§ 668.73 Nature of financial charges.Misrepresentation concerning thenature of an eligible institution’sfinancial charges includes, but is notlimited to, false, erroneous, ormisleading statements concerning—(a) Offers of scholarships to pay all orpart of a course charge;(b) Whether a particular charge is thecustomary charge at the institution for acourse;(c) The cost of the program and theinstitution’s refund policy if the studentdoes not complete the program;(d) The availability or nature of anyfinancial assistance offered to students,including a student’s responsibility torepay any loans, regardless of whetherthe student is successful in completingthe program and obtaining employment;or(e) The student’s right to reject anyparticular type of financial aid or otherassistance, or whether the student mustapply for a particular type of financialaid, such as financing offered by theinstitution.(Authority: 20 U.S.C. 1094)§ 668.74 Employability of graduates.Misrepresentation regarding theemployability of an eligible institution’sgraduates includes, but is not limited to,false, erroneous, or misleadingstatements concerning—(a) The institution’s relationship withany organization, employment agency,or other agency providing authorizedtraining leading directly to employment;(b) The institution’s plans to maintaina placement service for graduates orotherwise assist its graduates to obtainemployment;(c) The institution’s knowledge aboutthe current or likely future conditions,compensation, or employmentopportunities in the industry oroccupation for which the students arebeing prepared;(d) Whether employment is beingoffered by the institution or that a talenthunt or contest is being conducted,including, but not limited to, throughthe use of phrases such as ‘‘Men/womenwanted to train for * * *,’’ ‘‘HelpWanted,’’ ‘‘Employment,’’ or ‘‘BusinessOpportunities’’;(e) Government job market statisticsin relation to the potential placement ofits graduates; or