283—21.6(261B,261G) Postsecondary school closures.

1. 21.6(1)  Eligible students. The provisions of this rule apply to Iowa resident students who were enrolled in a postsecondary educational program that leads to a recognized educational credential or were on an approved leave of absence at the time of a postsecondary school closure.

2. 21.6(2)  Assistance to impacted eligible students. The commission may provide the following forms of assistance to eligible students impacted by a postsecondary school closure:

   1. a. Procure, evaluate, and store records needed to establish the validity of claims against a postsecondary school for failure to faithfully perform all contracts and agreements.
   2. b. Pay institutional charges on behalf of Iowans who enrolled at the school.
   3. c. Support an arrangement in which the postsecondary school provides its current students with the opportunity to complete the students’ courses of study after the postsecondary school closes, including any activities designed to facilitate the transition of such students to another postsecondary educational institution.
   4. d. Pay private educational loan debt incurred by Iowans for attendance at the postsecondary school during the enrollment term that the college closes.
   5. e. Reimburse Iowans who enrolled at the postsecondary school for other financial loss, as determined by the commission.

3. 21.6(3)  Claims process. An eligible student making a claim for reimbursement under paragraph 21.16(2)“b,” “d,” or “e” must contact the commission within six months of the postsecondary school closure for a claim form and provide the following supporting information and documentation:

   1. a. Proof of enrollment at the time of postsecondary school closing.
   2. b. Proof of attendance at the time of postsecondary school closing.
   3. c. Proof of Iowa residency at the time of postsecondary school closing.
   4. d. Proof of payment of private educational loan debt, tuition, fees, or other financial loss as determined by the commission.
   5. e. Any other documentation to support a student’s claim of enrollment, attendance, or payment.
4. 21.6(4)  Approval process. The commission will review a claim and the supporting information and documentation submitted by each eligible student seeking reimbursement under this rule. The commission may delay approval of claims for a period not to exceed one year from the date of the postsecondary school closure to ensure all claims related to a postsecondary school closure are received.

5. 21.6(5)  Awarding of approved claims.

   1. a. All claims for reimbursement shall be submitted and approved within one year of the date of the postsecondary school closure.
   2. b. Claims for reimbursement will first be made against the postsecondary school’s surety bond.

   3. c. If the postsecondary school’s surety bond is insufficient to provide reimbursement to all approved claims, the postsecondary registration fund, pursuant to Iowa Code section 261B.8, may be used to reimburse any remaining approved claims.

      In no case will the total approved claims related to a single postsecondary school closure exceed one‑half of the unobligated balance in the postsecondary registration fund pursuant to Iowa Code section 261B.8. If the postsecondary registration fund is insufficient to cover the full amount of all approved claims, the commission shall develop a method of allocating the funds to eligible students.

6. 21.6(6)  Appeal process. The procedures set forth in 283—Chapter 4 will be followed in the event of an appeal to a decision by the commission.

In the event of a postsecondary school closure, the commission may use unobligated funds from the postsecondary registration fund, pursuant to Iowa Code section 261B.8, to assist impacted eligible students.

[ARC 0052D, IAB 2/4/26, effective 3/11/26]