(b) Make such material available through appropriate publications and mailings to

(1) All currently enrolled students, and

(2) Any prospective student upon request of that student.

(20 U.S.C. 1092)

§ 668.34 Financial assistance information.

(a)(1) The information on financial assistance that the institution must publish and make readily available to current and prospective students shall include, but is not limited to, a description of all the Federal, State, local, private and institutional student financial assistance programs available to students who enroll at that institution.

(2) These programs include both need-based and non-need-based programs.

(3) The institution may describe its own financial assistance programs by listing them in general categories.

(b) For each program discussed in paragraph (a) of this section, the information provided by the institution shall describe—

(1) The procedures and forms by which students apply for assistance,

(2) The student eligibility requirements,

(3) The criteria for selecting recipients from the group of eligible applicants, and

(4) The criteria for determining the amount of a student's award;

(c) The institution shall describe the rights and responsibilities of students receiving financial assistance and specifically assistance under the Pell Grant, Supplemental Educational Opportunity Grant, State Student Incentive Grant, College Work-Study, National Direct Student Loan, Guaranteed Student Loan, and Parent Loans for Undergraduate Students Programs. This description shall include specific information regarding—

(1) Criteria for continued student eligibility under each program;

(2)(i) Standards which the student must maintain in order to be considered to be making satisfactory academic progress in his or her course of study for the purpose of receiving financial assistance payments, and

(ii) Criteria by which the student who has failed to maintain satisfactory academic progress may re-establish his or her eligibility for financial assistance payments;

(3) The method by which financial assistance payments will be made to the student and the frequency of such payments;

(4) The terms of any loan received by a student as part of the student's financial assistance package, a sample loan repayment schedule for sample loans and the necessity for repaying loans; and

(5) The general conditions and terms applicable to any employment provided to a student as part of the student's financial assistance package.

(20 U.S.C. 1092)

§ 668.35 Institutional information.

(a) The institutional information that the institution must publish and make readily available to current and prospective students shall include, but is not limited to information on the following subjects:

(1) The cost of attending the institution, including—

(i) Tuition and fees charged to fulltime and part-time students;

(ii) Estimates of necessary books and supplies;

(iii) Estimates of typical charges for room and board;

(iv) Transportation costs for commuting students or for students living on or off-campus, and

(v) Any additional cost of a program in which the student is enrolled or expresses a specific interest;

(2) A statement of the refund policy of the institution for the return of unearned tuition and fees or other refundable portion of costs paid to the institution;

(3) A statement of the institution's policies regarding any refund due to the title IV student assistance programs as required by § 668.21;

(4) The academic program of the institution, including—

(i) The current degree programs and other educational and training programs,

80-113 0-82--24"

(ii) The instructional, laboratory, and other physical facilities which relate to the academic program; and

(iii) The institution's faculty and other instructional personnel;

(5) The names of associations, agencies or governmental bodies which accredit, approve or license the institution and its programs and the procedures by which the documents describing that activity may be reviewed under paragraph (b) of this section.

(6) A description of any special facilities and services available to handicapped students;

(7) A discussion of whether instructional or other physical facilities are readily accessible by handicapped students; and

(8) The titles of persons designated under § 668.36 and information regarding how and where such persons may be contacted.

(b) The institution shall make available for review to any current or prospective student, upon request, a copy of the documents describing the institution's accreditation, approval or licensing.

(20 U.S.C. 1092)

§ 668.36 Availability of employees for information dissemination purposes.

(a) Availability. (1) Except as provided in paragraph (b) of this section, each institution shall designate an employee or group of employees who shall be available on a full-time basis to assist current students or prospective students in obtaining the information specified in § 668.34 and § 668.35.

(2) If the institution designates one person, that person shall be available, upon reasonable notice, to any current or prospective students throughout the normal working hours of that institution,

(3) If more than one person is designated, their combined work schedules shall be arranged so that at least one of them is available, upon reasonable notice, throughout the normal administrative working hours of that institution.

(b) Waiver. (1) The Secretary may waive the requirement that the employee or group of employees designated under paragraph (a) of this section be available on a full-time basis if the

institution's total enrollment, or the portion of the enrollment participating in any title IV student assistance program, is too small to necessitate an employee or group of employees being available on a full-time basis.

(2) In determining whether an institution's total enrollment or the number of title IV recipients is too small, the Secretary will consider whether there will be an insufficient demand for information dissemination services among its current students or prospective students to necessitate the full-time availability of an employee or group of employees.

(3) To receive a waiver, the institution must apply to the Secretary at the time and in the manner prescribed by the Secretary.

§ 668.63 Nature of educational program.

Misrepresentation by an institution of the nature of its educational program includes, but is not limited to, false, erroneous, or misleading statements concerning

(a) The particular type(s), specific source(s), nature, and extent of its accreditation;

(b) Whether a student may transfer course credits earned at the institution to any other institution;

(c) Whether successful completion of a course of instruction qualifies a student for

(1) Acceptance into a labor union or similar organization, or

(2) Receipt of a local, State, or Federal license or nongovernmental certification required as a precondition for employment or to perform certain functions;

(d) Whether its courses are recommended

(1) By vocational counselors, high schools, or employment agencies, or

(2) By government for government employment;

(e) Its size, location, facilities, or equipment;

(f) The availability, frequency, and appropriateness of its courses and programs to the employment objectives that it states its programs are designed to meet;

(g) The nature, age, and availability of its training devices or equipment and their appropriateness to the employment objectives that it states its programs and courses are designed to meet;

(h) The number, availability, and qualifications, including the training and experience, of its faculty and other personnel;

(i) The availability of part-time employment or other forms of financial assistance;

(j) The nature and availability of any tutorial or specialized instruction, guidance, and counseling, or other supplementary assistance it will provide its students before, during, or after the completion of a course; or

(k) The nature or extent of any prerequisities established for enrollment in any course.

(20 U.S.C. 1094)

§ 668.64 Nature of financial charges.

Misrepresentation by an institution of the nature of its financial charges includes, but is not limited to, false, erroneous, or misleading statements concerning

(a) Offers of scholarships to pay all or part of a course charge, unless a scholarship is actually used to reduce tuition charges made known to the student in advance. The charges made known to the student in advance are the charges applied to all students not receiving a scholarship; or

(b) Whether a particular charge is the customary charge at the institution for a course.

(20 U.S.C. 1094)

§ 668.65 Employability of graduates.

Misrepresentation by an institution regarding the employability of its graduates includes, but is not limited to, false, erroneous, or misleading statements

(a) That the institution is connected with any organization or is an employment agency or other agency providing authorized training leading directly to employment;

(b) That the institution maintains a placement service for graduates or will otherwise secure or assist its graduates to obtain employment, unless it provides the student with a clear and accurate description of the extent and nature of this service or assistance; or

(c) Concerning Government job market statistics in relation to the potential placement of its graduates.

(20 U.S.C. 1094)

§ 668.66 Endorsements and testimonials.

The Secretary views as misrepresentation endorsements and testimonials that are not given voluntarily or do not describe current practices and conditions of an institution.

(20 U.S.C. 1094)

§ 668.67 Procedures.

(a) On receipt of a written allegation or complaint from a student, prospective student, the family of a student or prospective student, or a governmental official, the designated ED official, as defined in Subpart G, reviews the allegation or complaint to determine its factual base and seriousness.

(b) If the misrepresentation is minor and can be readily corrected, the designated ED official informs the institution and endeavors to obtain an informal, voluntary correction.

(c) If the designated ED official finds that the complaint or allegation is a substantial misrepresentation as to the nature of the educational programs, the financial charges of the institution, or the employability of its graduates, the official

(i) Initiates action to fine or to limit, suspend, or terminate the institution's eligibility according to the procedure set forth in subpart G, or

(2) Takes other appropriate action. (20 U.S.C. 1094)

(c) This subpart does not apply to a determination that—

(1) An institution of higher education fails to meet the statutory definition set forth in sections 435, 481 or 1201 of the Higher Education Act;

(2) A vocational school fails to meet the statutory definition set forth in Section 435(c) of the Act; or

(3) An institution fails to qualify for certification to participate in the title IV student assistance programs because it does not meet the fiscal and administrative standards set forth in subpart B of this part.

(d) This subpart does not apply to administrative action by the Department of Education based on any alleged violation of

(1) Title VI of the Civil Rights Act of 1964, which is governed by 34 CFR Part 100;

(2) Title IX of the Education Amendments of 1972, (relating to sex discrimination) which is governed by 34 CFR Part 106;

school as defined in section 435(c) of the Higher Education Act (HEA), or (3) with respect to students who are nationals of the United States, an institution outside the United States which is comparable to an institution of higher education or to a vocational school and which has been approved by the Secretary for purposes of participation in title IV student assistance programs covered under this subpart. (20 U.S.C. 1094)

§ 668.73 Informal compliance procedures.

(a) If the Secretary receives a complaint, or has other information which the Secretary believes to be reliable, indicating that an institution is, or may be, in violation of applicable laws, regulations, special arrangements, agreements, or limitations, the Secretary may call the matter to the attention of the institution and may give it a reasonable opportunity

(1) To respond to the complaint or other information;

(2) To show that the matter has been corrected; or

(3) To submit an acceptable plan to correct the violation and prevent its

recurrence.

(b) The procedures provided in this subpart for a fine or for a suspension, limitation, or termination need not be delayed during the informal compliance procedure if the Secretary believes

(1) The delay would have an adverse effect on any or all title IV student assistance programs covered under this subpart, or

(2) The informal compliance procedure will not result in a correction of the alleged violation.

(20 U.S.C. 1094)

§ 668.74 Emergency action.

(a) The Secretary through a designated ED official, may take emergency action to withhold funds from an institution or its students and to withdraw the authority of an institution to obligate funds under the HEAL program or any or all title IV student assistance programs covered under this subpart if the designated ED official

(1) Receives information which the official believes to be reliable that an

institution is in violation of applicable laws, regulations, special arrangements, agreements, or limitations,

(2) Determines that such action is necessary to prevent the likelihood of substantial loss of funds to the Federal Government or to the students at the institution, and

(3) Determines that the likelihood of loss outweighs the importance of following the procedures set forth in this subpart for suspension, limitation, or termination.

(b) The designated ED official begins an emergency action by notifying the institution, by certified mail with return receipt requested, of the action and the basis on which it is taken. The effective date of the action is the date on which the notice is received by the institution.

(c) An emergency action shall not exceed 30 days unless a suspension, limitation, or termination proceeding is begun under this subpart before the expiration of that period. In such case, the period may be extended until the completion of that proceeding, including any appeal to the Secretary.

(d) If a suspension, limitation, or termination proceeding is begun, the Secretary will provide the institution, if it so requests an opportunity to show cause that the emergency action is unwarranted, pending the outcome of that proceeding.

(20 U.S.C. 1094)

§ 668.75 Fine proceedings.

(a) Scope and consequences. The Secretary may impose a fine of up to $25,000 on an institution that

(1) Violates any provision of title IV of the Higher Education Act or any regulation or agreement implementing that title; or

(2) Substantially misrepresents the nature of its educational program, its finance charges, and the employability of its graduates.

(b) Procedures. The designated ED official begins a fine proceeding, whether or not a suspension, limitation or termination proceeding has begun under § 668.76 or § 668.77 by sending the institution a notice, by certified mail with return receipt requested. This notice must