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Proprietary Schools
Frequently Asked Questions
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What is postsecondary education?
Postsecondary education means education or educational services offered primarily to persons who have completed or terminated their secondary or high school education or who are beyond the age of compulsory school attendance.

Are schools that are located out of state required to register before advertising, soliciting or recruiting students in Utah?
Yes, unless the institution is exempt from the registration requirements and has submitted an exempt registration on file with the Division.

Operate means to have a significant presence within the state, to conduct significant educational activities within the state, or to offer postsecondary instruction leading to a postsecondary degree or certificate to any number of Utah residents assembled at a receiving site in Utah from a location outside the state by correspondence or any telecommunications or electronic media technology.

How many schools are registered with the Division?
You may review the list of registered and exempt institutions.

Does the state accredit or recommend an institution?
No. Acceptance of registration statements and the issuing of a certificate of registration to operate a school signifies that the legal requirements prescribed by statute and regulations have been satisfied. It does not mean the Division supervises, recommends nor accredits institutions statements on file and who have been issued a Certificate of Registration to operate.

It is the student's responsibility to determine whether credits, degrees or certificates from the institution will transfer to other institutions or meet employers hiring requirements. This may be done by contacting the prospective school and employer. The registered institutions are not accredited by a regional or national accrediting body recognized by the United States Department of Education.

Are there penalties for operating a proprietary school without a certificate of registration?
Yes. In addition to other penalties and remedies in the Act and in addition to its other enforcement powers under Section 13-2-6 of the Utah Postsecondary Proprietary School Act, the division director may: issue a cease and desist order; and impose an administrative fine of up to $5,000.

Can the Division deny, suspend or revoke a certificate of registration.
Yes. If the school submits information that is misleading or incomplete and it is in the public interest the Division may take action to deny, suspend or revoke a certificate of registration. For further information and additional reasons, refer to the Utah Postsecondary Proprietary School Act.

Are registered schools required to submit financial statements to the Division?
Yes. Depending on the registration year, the registered institution is required to submit its financial statements pursuant to the requirements of the Utah Postsecondary Proprietary School Act. The Division can request financial information at any time from a school to determine the school’s financial viability. A proprietary school shall demonstrate fiscal responsibility at the time the proprietary school files its registration statement as prescribed by rules of the division and provide evidence to the division that the proprietary school is financially sound and can reasonably fulfill commitments and obligations the proprietary school has incurred with students and creditors.

Are schools required to maintain surety?
Yes. Unless the institution is exempt from the surety requirements which are that the program length is less than one month or the total cost of the program is less than $500. The Division will accept surety in the form of a surety bond, certificate of deposit or an irrevocable letter of credit. The bond, certificate of deposit or letter of credit shall be used as a protection against loss of advanced tuition, book fees, supply fees, or equipment fees. After the first year of operation, the surety amount is calculated as 25% of the gross tuition income with the minimum amount of $12,500 and the maximum amount of $187,500. The initial registration surety is based on the number of students the school expects to enroll.

If a school decides to discontinue its operations, must it notify the Division?
Yes. If a proprietary school elects to discontinue its operations in this state, the proprietor or administrator of the school shall file with the division a copy of each student’s grade transcript in either written or microfilm form, relating to all courses of instruction and all students enrolled in the school. In addition, the school shall prepare a written plan for access to and preservation of permanent records in the event of the closure. A school is required to maintain surety for one year after discontinuance of its operation.

Is the Division’s written consent required for use in a business name of educational terms such as "college", "university", or "institution".
Yes. The Division shall consent to the use of an educational term in a business name if the person seeking to file the name is a registered proprietary school, is exempt from the registration requirements of a proprietary school or is not engaged in educational activities and does not represent that it is engaged in educational activities. No institution shall use the designation of ‘college’ nor ‘university’ in its title nor in conjunction with its operation unless it actually confers a standard college degree as one of its credentials.

Is there an annual registration?
Yes. Schools are required to submit a renewal registration application every two years. In addition, schools are required to file a review registration application on the one year anniversary of the current registration period. An application fee is due with each filing. The fee is calculated as one half of one percent with a minimum amount of $100 and the maximum amount of $2,000. If a school is required to maintain surety, it must be renewed annually.

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