Student refunds
When a school closes and prevents a student from completing their training, they are due a 100% refund from the owner if a teach-out is unavailable. If the owner fails to make the refund the TTA will provide the proportionate funds. Where does the TTA get their available funds?
Jimmy,
Thanks for the question. I researched this on the TWC site. It appears the maximum TTA payout per school is $150,000. The TTA used to be known as the Tuition Protection Fund. Schools were assessed an annual fee payable to this account. The rules were changed in 2003 - the following is from the TWC site: The amendments eliminated the requirement for surety bonds and the tuition protection fund and created the career school or college tuition trust account (tuition trust account) . The tuition trust account is a permanently dedicated trust fund...The remaining balance in the tuition protection fund on August 31, 2003, was transferred to the tuition trust account.
In addition, see rule section 807.194 b)Penalties assessed on late refunds for grants shall be paid to the tuition trust account if the amount is $15 or less...
There may be other instances where a violation could result in a fine or fee to the TTA. Also, if the TTA fund becomes depleted, assessments are a possibility.
JP Mehlmann
