HLC Approval of Teach-Out Arrangements

HLC approval of various aspects of an institution’s teach-out arrangements shall be required when an institution must teach-out one or more students, or when a provisional plan is otherwise required.

When a Provisional Plan Is Required, With or Without Teach-Out Agreements

In some circumstances, an institution shall be required to submit a written provisional plan to HLC for review and approval. In some circumstances, an institution shall also be required to submit at least one teach-out agreement in conjunction with that provisional plan to HLC for review and approval.

An institution is required to promptly contact HLC through its HLC staff liaison if it becomes aware of or anticipates any of the circumstances listed in this policy that would require a provisional plan, with or without teach-out agreements.

Circumstances Requiring a Provisional Plan

An institution is required to submit a provisional plan for review and approval in any of the following circumstances:

1. The U.S. Department of Education notifies HLC of a determination by a non-profit or proprietary institution’s independent auditor expressing doubt regarding the institution’s ability to operate as a going concern or indicating an adverse opinion or a finding of material weakness related to the institution’s financial stability.
2. The U.S. Department of Education determines that the institution is required to participate in Title IV, HEA programs under a provisional program participation agreement and is required to have a teach-out plan (provisional plan) as a condition of participation.
3. HLC grants candidacy to an institution.
4. HLC places an institution on Probation or issues a Show-Cause Order to the institution.
5. HLC staff determines in its sole discretion that closure or suspension of one or more educational programs at an institution raises concerns that students in the program(s) will not be able to complete their program of study.
6. HLC staff determines that the institution is at risk for a sudden closure or suspension of its operations.
7. HLC staff determines in its sole discretion that a provisional plan is otherwise necessary to protect students based on a risk that students will not be able to complete their program of study.

Circumstances Requiring a Provisional Plan and Teach-Out Agreements

In general, it is necessary for an institution to enter into teach-out agreements if: (a) it is anticipated that the institution will need to rely on the assistance of one or more institutions (each then referred to as a teach-out receiving institution) to teach-out students prior to its closure as an academic institution, closure of a branch campus, or closure of an additional location at which 100% of an educational program is offered (if not within a reasonable distance from the institution’s other branch campuses or additional locations), or the discontinuation of an educational program(s); (b) it is anticipated that the institution’s planned closure date for any branch campus or any additional location at which 100% of an educational program is offered, predates the anticipated graduation date for any number of students pursuing their program(s) of study at that branch campus or additional location; or (c) it is anticipated that the institution’s loss of eligibility for Title IV funds will result in some students being unable to complete their program(s) at that institution even if the institution itself will continue to operate.

An institution shall be required to submit a written provisional plan and, if practicable, at least one teach-out agreement in conjunction with that provisional plan, to HLC for review and approval in any of the following circumstances:

(list continued from above)

8. Any of the circumstances described in (1)-(7) above, if HLC staff determines in its sole discretion that teach-out agreements are necessary to protect students based on a risk that students will not be able to complete their program of study as described above.
9. The U.S. Department of Education initiates an emergency action, limitation, suspension, termination or similar action against the institution.
10. The U.S. Department of Education places the institution on the Reimbursement payment method or Heightened Cash Monitoring 2 payment method.
11. HLC acts to withdraw the institution’s accreditation or candidacy.
12. The institution notifies HLC that it intends to close or otherwise suspend, cease or remove operations entirely.
13. The institution notifies HLC that it intends to permanently close a branch campus or an additional location where it offers 100% of at least one certificate or degree program before all students have completed their program of study, including if the branch campus or additional location is being moved and is considered by the U.S. Department of Education to be a closed institution.
14. The institution notifies HLC that it intends to permanently close an additional location where it offers one or more Pell-eligible prison education programs, or another site where it offers 100% of any educational program designed for students who are incarcerated (even if not Pell-eligible). 
15. A state licensing or authorizing agency revokes or indicates that it will revoke an institution’s license or legal authorization to provide an educational program in that state.

HLC Requirements for Provisional Plans

A provisional plan submitted to HLC for review and approval must meet the following minimum requirements. Additional information is available in “Provisional Plans and Teach-Out Agreements: Overview of HLC’s Teach-Out Requirements.”

1. The provisional plan provides for equitable treatment of students by ensuring that they are able to complete, within a reasonable period of time, the educational program in which they were enrolled immediately prior to the situation requiring submission of a provisional plan.
2. The provisional plan includes a complete list of the educational programs offered by the institution.
3. The provisional plan includes a complete list of currently enrolled students (with personally identifiable information redacted) in each affected educational program at the institution.
4. The provisional plan includes a complete list of all recognized programmatic accreditors and state licensing agencies with which the institution has a relationship, as well as the status of any educational program with such entities.
5. The provisional plan includes the name of at least one other institution that could potentially enter into a teach-out agreement with the institution because the other institution offers educational programs that are reasonably similar in content, delivery modality and scheduling to affected educational programs at the institution.
6. The provisional plan includes a record retention plan that delineates the final disposition of student records.
7. The provisional plan includes a plan for financial aid advising, academic advising and other appropriate academic assistance (including, as applicable, information for students who transfer).
8. The provisional plan includes a communications plan that, at minimum:
   1. Provides all affected students with a summary of the provisional plan and, if the provisional plan includes teach-out agreements, with a summary of the teach-out agreements, as applicable to the affected students.
   2. Provides all potentially eligible students with information about how to obtain a closed school discharge and, if applicable, information on state refund policies. 

HLC Requirements for Teach-Out Receiving Institutions

An institution that intends to serve as a teach-out receiving institution must meet the following requirements. Additional information is available in “Provisional Plans and Teach-Out Agreements: Overview of HLC’s Teach-Out Requirements.”

1. Be accredited by an accreditor recognized by the U.S. Department of Education and, where appropriate, eligible for Title IV financial aid.
2. Offer the educational programs covered by the teach-out agreement and, as applicable, be approved by the appropriate state higher education agency(ies) to offer the educational programs covered by the teach-out agreement.
3. Have similar programmatic accreditation for educational programs covered by the teach-out agreement, if such accreditation is necessary to serve students enrolled in educational programs for which licensure or certification requirements apply.
4. Have the necessary experience, resources and support services to provide an educational program that is of acceptable quality and reasonably similar in content, delivery modality and scheduling to that provided by the current institution.
5. Be willing to modify, as appropriate, admissions requirements and residency requirements for affected students.
6. Demonstrate that it can provide students access to applicable educational programs and services without requiring them to move or travel substantial distances or durations.
7. Have the capacity to carry out its mission and meet all obligations to its existing students.
8. Not be subject to any of the circumstances that would require it to submit a provisional plan pursuant to this policy or applicable regulations.
9. Not be under investigation, subject to an action, or being prosecuted for an issue related to academic quality, misrepresentation, fraud, or other severe matters by a law enforcement agency.

HLC reserves the right to disqualify any institution as a teach-out receiving institution based on its determination that the institution does not have the capacity to serve as a teach-out receiving institution based on these circumstances or other risk factors.

An HLC institution that intends to serve as a teach-out receiving institution to another institution, regardless of whether the other institution has submitted a provisional plan to HLC, or is itself accredited by HLC, must inform HLC of its intent to serve as a teach-out receiving institution prior to implementation of a teach-out agreement.

HLC Requirements for Teach-Out Agreements

A teach-out agreement that is submitted to HLC for review and approval must meet the following minimum requirements. Additional information is available in “Provisional Plans and Teach-Out Agreements: Overview of HLC’s Teach-Out Requirements.”

1. The teach-out agreement is fair and equitable to students.
2. The teach-out agreement provides students with reasonable opportunities to complete their program of study.
3. The teach-out agreement clearly states the time period for which it is applicable.
4. The teach-out agreement contains an affirmation that it is consistent with all applicable state and federal regulations.
5. The teach-out agreement identifies which educational programs are within the scope of the teach-out agreement.
6. The teach-out agreement identifies which student populations are within the scope of the teach-out agreement.
7. The teach-out agreement includes a complete list of currently enrolled students (with personally identifiable information redacted) in each affected educational programs at the institution, indicating the program requirements each student has completed and the number and type of credits the teach-out receiving institution is willing to accept prior to the student’s enrollment.
8. The teach-out agreement includes information on the tuition and fees of the educational program(s) at the teach-out receiving institution, including any additional charges.
9. The teach-out agreement includes a records retention plan that delineates the final disposition of student records.
10. The teach-out agreement includes a communications plan that, at a minimum:
    1. Provides all affected students with information about the time period for which the teach-out agreement is applicable.
    2. Provides all affected students with information on which students are within the scope of the teach-out agreement, including the number and types of credits the teach-out receiving institution is willing to accept prior to each student’s enrollment.
    3. Provides all affected students with a clear statement of the tuition and fees of the educational program(s), including any additional charges.
    4. Provides all affected students with information regarding the records retention plan.
    5. Provides all potentially eligible students with information about how to obtain a closed school discharge and, if applicable, information on state refund policies.

HLC Approvals Related to Teach Out

HLC staff have the authority to take the following actions related to teach-out arrangements:

1. Approve the participation of additional teach-out agreements in a teach-out arrangement after an HLC decision-making body has approved the provisional plan associated with those teach-out agreements.
2. Approve the participation of an HLC member institution as a teach-out receiving institution in a teach-out arrangement for a non-HLC member institution.

HLC staff may request at any time that an institution submit a new provisional plan based on changes in circumstances.

All other HLC approvals related to teach-out arrangements shall be provided by an HLC decision-making body recognized by the U.S. Department of Education.

If HLC approves a provisional plan or teach-out agreement that includes an educational program accredited by another recognized accreditor, HLC shall notify that accreditor as provided for in HLC policies.

Institutional Closure Without Approved Provisional Plan or Teach-Out Agreement

In the event of an institutional closure without an approved provisional plan or an approved teach-out agreement, HLC shall work with the U.S. Department of Education, the appropriate state agency, if any, and any applicable recognized accreditor, to the extent feasible, to assist students in finding reasonable opportunities to complete their education without additional charges.

Failure to Comply With Teach-Out Policy

An institution that does not comply with this policy as required may be subject to further action in accordance with HLC policy for noncompliance with HLC requirements.

Policy History

Last Revised: February 2025
First Adopted: June 2008
Revision History: revised February 2009, February 2010, November 2010, August 2016, June 2017, June 2020, November 2020, November 2021, February 2022, June 2022, February 2023, November 2023, February 2025
Notes: Policies combined November 2012: 3.9, 3.9(a), 3.9(b), 3.9(c), 3.9(d). In February 2021, references to the Higher Learning Commission as “the Commission” were replaced with the term “HLC.”