For-Profit School Disclosures
Note: This for-profit school disclosures policy has been updated to implement the changes to newly enacted Iowa House File 644 (Effective July 1, 2021). All modifications to this disclosures policy are reflected below. The Iowa Legislature’s website will not reflect these changes until later this year.
What is the For-Profit School Disclosures Policy?
Under Iowa Code Section 714.25, certain for-profit schools are required to provide student consumer information disclosures.
What schools must provide disclosures?
A for-profit school that offers at least one program leading to a recognized postsecondary credential, which may include but is not limited to:
- An academic or professional degree, diploma, license, or other certification or designation, regardless of whether the school awards the credential.
- A certificate, badge, or other type of professional credential awarded by a corporation or employer (e.g., “microcredentials” issued by software companies like Microsoft, Adobe, etc).
Which for-profit schools do not have to adopt the 714.25 disclosure policy?
- For-profit schools that are eligible for federal financial student aid
- Personal vehicle driving education schools
- Postsecondary vocational schools that offer solely discrete continuing education courses
- A for-profit school that offers solely programs for which the sum of tuition, fees, instructional materials, technology, and other items required for program completion is less than three thousand dollars
- A newly authorized for-profit school is exempt from data reporting until the school’s first biennial financial responsibility renewal application.
What information must be disclosed?
A for-profit school offering a recognized educational credential shall, prior to the time a student is obligated for payment of any funds, inform the student, and the college student aid commission of all of the following data.
- The current total cost of the postsecondary educational program as charged by the for-profit school.
- An estimate of fees that may be charged to the student by others in order to obtain a recognized educational credential, including but not limited to fees for examination or licensure.
- The percentage of students who successfully complete the postsecondary educational program, and the percentage who terminate prior to completing the postsecondary educational program*.
- If claims are made by the for-profit school as to successful placement of students in jobs upon completion of the for-profit school’s postsecondary educational programs, the for-profit school shall provide the student with all of the following*:
- The percentage of graduating students who were placed in jobs in fields related to the postsecondary educational programs.
- The percentage of graduating students who went on to further education immediately upon graduation. The percentage of students who, ninety days after graduation, were without a job and had not gone on to further education.
- The method by which the for-profit school collected and verified the validity of data.
- If claims are made by the for-profit school as to income levels of students who have graduated and are working in fields related to the for-profit school’s postsecondary educational programs, the for-profit school shall inform the student of the method used to derive such information.
*Schools should include the following information: 1) the applicable program name and the normal length of time required to complete the program; 2) the total number of students in the cohort for which data is reported and the year in which the students began the program; and 3) the percentage of students that met the conditions and the most recent ending date for program completion in each of the school’s programs.
Who receives the disclosures?
- Current and Prospective Students
- Iowa College Student Aid Commission
How does a school demonstrate compliance?
Who do I contact?
For further information, contact the Postsecondary Authorization Team.