Compliance advisory opinion as to whether three affiiated sellers of correspondence courses have properly…

90 F.

Compliance advisory opinion as to whether three affiiated sellers of correspondence courses have properly determined which former students are eligible for partial tuition refunds under a consent order issued against the firms (88 F. C. 683 Docket No. 8963).

Advisory Opinion Letter

September 2, 1977 Gentlemen:

This is to advise you that the Commission has given consideration to your submission under cover of your letters of May 17, and June 29 1977, of questionnaires which you have sent out pursuant to the order in the above referenced matter and the determinations you have made with respect thereto regarding eligibilty for tuition refund as prescribed by said order. In accordance with said order you have submitted said questionnaires for review by the Commission and an advisory opinion as prescribed in Section 3. 61(d) of the Commission s Rules of Practice.

Except as noted below, the Commission has determined that your submission represents compliance with the applicable order provisions regarding eligibility of former Lafayette Academy students for partial tuition refunds.

Four completed questionnaires (Appendices 1-4) which you determined to be not payable contained, in response to Question 7 , a multiple answer by the student as to why he or she failed to complete the course or failed to seek employment. In these circumstances, where one answer would qualify the former student for eligibility under the Commission s order even though non-qualifying answers were also provided, the Commission is of the opinion that these claims should be honored.

Fourteen questionnaires (Appendices 5-18) which you determined to be not payable contained narrative responses to Question 7 which suggest that the students' failure to complete or to job-search was reasonably related to the suffciency or quality of the training or job demand as provided for in subparagraphs 5(b)(2) or 5(c) of Part II. The Commission believes that these claims should also be honored. ADVJSORY OPINIONS 989

988 DeciBion and Order A group of six questionnaires (Appendices 19-24) were from students who had completed their respective courses, had sought employment but had not obtained employment in the relevant occupations. The Commission is of the opinion that these responses meet the criteria for eligibilty contained in the Commission s order and these former students are therefore eligible for refund. In addition, four former students (Appendices 25-28) by their questionnaires advised that they did not complete their courses because they did not receive necessary study materials or tests from your organization. The Commission s view is that failure to receive such course materials fairly relates to the suffciency or quality of the training, and that these former students are eligible for refund. Finally, three former students which you have determined to be not eligible (Appendices 29-31) stated that they had failed to complete their particular courses for the reason indicated in item 7j of the questionnaire: "I decided that the course would not help me get a job." This response, in the Commission s view, relates to the suffciency or quality of the training and/or job demand. Therefore, these students should be determined to be in the eligible class.

It is the opinion of the Commission, based upon the information furnished that with the exceptions noted hereinabove, your eligibilty determinations under Part III, paragraph 5 of the Commission order represent compliance with that provision to the extent that your obligations under other order provisions have been fulfilled. This opinion is not intended to apply to any other duties or obligations imposed upon you by the order other than your responsibilty under Part III to make initial determinations as to who constitutes eligible class members for purposes of the required tuition refunds.

The student questionnaires are being returned to you under separate cover.

By direction of the Commission.