Learn more about private occupational school oversight

The Office of the State Auditor evaluates the ownership, organization, and financial condition of these schools.

The Office of the State Auditor works with the Division of Occupational Licensure (formerly the Division Professional Licensure (DPL)) to ensure that private occupational schools are financially responsible and qualified for licensure within the Commonwealth.

In accordance with Chapter 112, Section 263 (d) of the General Laws, the OSA, in collaboration with the Division of Occupational Licensure (DOL), evaluates and monitors the ownership, organization, and financial condition of private occupational schools licensed to offer non-degree-granting career-oriented training programs within the Commonwealth.

Financial certification by the OSA is a composite evaluation of a variety of measures of financial health, taking into consideration differences in curriculum, length of programs offered, tuition per student, and organizational structure, with currently licensed schools ranging in size from small sole proprietorships to partnerships, limited liability companies, nonprofit charitable organizations and multi-national publicly-traded corporations.

Once the overall solvency of the applicant has been established, the OSA annually calculates the level of indemnification needed by each school to cover potential refunds to students in the event of bankruptcy, liquidation, or a breach of contract by the school. Such indemnification is conditioned to cover the school’s maximum anticipated level of unearned tuition income, and may take the form of a surety bond, an irrevocable letter of credit, or a term deposit account payable to the Commonwealth.

The OSA has also been continuously represented on the Advisory Council since it was established in 2005. The Advisory Council consists of 12 members who advise the DOL on postsecondary school issues, trends and needs and makes programmatic recommendations for increasing the efficiency and effectiveness of this important consumer protection function. The Advisory Council consists of a diverse cross-section of public and private members intended to draw on the perspectives and experiences of a wide range of constituents in order to strengthen the field of proprietary school education within the Commonwealth.

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