Private for-profit and non-profit postsecondary schools in Oregon, as well as out-of-state private and public schools offering online education in the state, will need to file a surety bond following the passing of House Bill 3516 in June. The bill modifies portions of the Oregon Administrative Rules.
The abrupt closure of several for-profit college campuses in Oregon resulted in hundreds of students left without a complete education and with no way to recover tuition paid. The surety bond requirement will give students the option of recovering funds in the event of a school closure.
The Higher Education Coordinating Commission (HECC) advises Oregon government on postsecondary education policy and ensures institutions are meeting standards in areas such as curriculum, admissions, fees and facilities. The HECC also determines if institutions are financially sound. The surety bond guarantees a school’s good financial state and capability to fulfill obligations to its students.