Substantive Change: Teach-Out Arrangements
HLC requires institutions in certain circumstances to develop arrangements for assisting students in the event that the institution may cease operations or discontinue programs before all students complete their program of study. Such an arrangement is called a teach-out arrangement, and it may involve the institution teaching out its own students or entering into agreements with other colleges or universities that will enroll and teach out the institution’s students.
Teach-out arrangements may include provisional plans and/or teach-out agreements. The circumstances that require an institution to submit a teach-out arrangement for HLC approval are detailed in HLC policy.
HLC’s teach-out requirements, as detailed below, apply to institutions that:
- Are required to submit a provisional plan and, if applicable, at least one teach-out agreement to HLC.
- Enter into teach-out agreements to receive students from another institution (known as teach-out receiving institutions).
Resources and Forms
HLC policy: Approval of Institutional Teach-Out Arrangements (FDCR.B.10.010)
Federal regulations include definitions and requirements related to teach-out arrangements. See:
HLC has established its own terms and definitions to incorporate the scope of HLC’s membership more comprehensively. See the following definitions in HLC’s Glossary:
Note: Institutions should follow HLC’s Personally Identifiable Information Guidelines when submitting provisional plans or teach-out agreements to HLC.
When Provisional Plans and Teach-Out Agreements Are Required
Whenever an institution experiences any circumstances that require it to submit a provisional plan, it must, to the extent that HLC is not already aware of the circumstances, notify HLC as soon as possible.
Even if an institution is not yet ready to submit a provisional plan or teach-out agreements, prompt notification to HLC of the underlying circumstances is encouraged.
The format of this notification will depend on the circumstances. For example, in some situations the institution will first notify HLC through its HLC staff liaison. In other circumstances, an institution may submit an FSA Status Notification to HLC. If an institution is unsure about how to notify HLC about a particular circumstance, it should contact its HLC staff liaison.
Circumstances Related to the U.S. Department of Education (USDE) or State Agencies
Circumstances Related to HLC
Institutional Circumstances
Requirements for Teach-Out Receiving Institutions Accredited by HLC
Determining If an Institution Is a Transfer Option or a Teach-Out Receiving Institution
An institution that enrolls students from a college or university that ceases operations or discontinues a program must meet specific requirements, detailed in HLC policy, to be considered a teach-out receiving institution. If an institution wishes to evaluate the credits that individual students have earned through its established transfer policies or through a modified version of those policies, then the institution is a transfer option, not a teach-out receiving institution. HLC does not approve transfer options. No documentation is required about or from institutions serving as transfer options.
Decision Making
Provisional Plans
Institutions are invited to share drafts of their provisional plans with their HLC staff liaison for feedback in advance of submission. When an institution submits a provisional plan, its HLC staff liaison will review the provisional plan in accordance with HLC’s substantive change procedures and determine preliminarily whether it meets HLC requirements. If so, the provisional plan will be considered by HLC’s Institutional Actions Council (IAC) for approval.
HLC will expedite IAC’s review of a provisional plan, and any associated teach-out agreements, when necessary to provide the best information to students.
IAC may approve a provisional plan, approve with modifications (for example, one or more proposed teach-out agreements may not be approved), or deny approval.
If a provisional plan is not approved, the institution may resubmit the provisional plan addressing the issues that led to the denial as soon as possible.
A provisional plan must be approved by IAC before it can be implemented.
Teach-Out Agreements
Between HLC Member Institutions
When an HLC member institution serves as a teach-out receiving institution for another HLC member institution, the teach-out agreement may be reviewed by IAC or HLC staff depending on whether the teach-out agreement is submitted with the provisional plan or after the provisional plan has been approved.
If the IAC or HLC staff does not approve a teach-out agreement, the proposed teach-out receiving institution may still serve as a transfer option. (HLC does not review transfer options.)
Approval of Teach-Out Agreement(s) Submitted With Provisional Plan
IAC will consider the teach-out agreements for approval as part of the provisional plan.
Approval of Teach-Out Agreement(s) Submitted After Initial Approval of Provisional Plan
If HLC has approved the initial provisional plan with one teach-out agreement, subsequent teach-out agreements may be approved by HLC staff.
Between an HLC Member Institution and a Non-member Institution
When an HLC member institution serves as a teach-out receiving institution for an institution that is not an HLC member, the teach-out agreement may be approved by HLC staff.
Communications About Teach-Out Arrangements
By the Institution
HLC’s Obligations of Membership require an institution to notify applicable constituents whenever HLC requires the institution to submit a provisional plan, and to provide an accurate explanation as to the rationale for the provisional plan.
Regarding the details of a provisional plan, once the HLC staff liaison has reviewed an institution’s provisional plan and initially determined that it meets HLC requirements, the institution may begin to convey its plans to students and other parties provided that it makes clear that it is still pending approval by HLC. (The institution is encouraged to preview drafts of such communications with its HLC staff liaison.)
By HLC
HLC publishes information about approved provisional plans and teach-out agreements within 30 days after the action is taken. Actions are posted on HLC’s website under Accreditation Actions.
If an approved teach-out agreement is related to an institution that voluntarily resigns its accreditation with HLC, information about the teach-out agreement also will be published in the Public Disclosure Notice announcing the institution’s voluntary resignation. The Public Disclosure Notice is available on the institution’s Statement of Accreditation Status in HLC’s Directory of Institutions.

Questions?
Contact [email protected] or the institution’s HLC staff liaison