34 C.F.R. § 668.71

Scope and special definitions

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(a) If the Secretary determines that an eligible institution has engaged in substantial misrepresentation, the Secretary may—

(1) Revoke the eligible institution's program participation agreement, if the institution is provisionally certified under § 668.13(c);

(2) Impose limitations on the institution's participation in the title IV, HEA programs, if the institution is provisionally certified under § 668.13(c);

(3) Deny participation applications made on behalf of the institution; or

(4) Initiate a proceeding against the eligible institution under subpart G of this part.

(b) This subpart establishes the types of activities that constitute substantial misrepresentation by an eligible institution. An eligible institution is deemed to have engaged in substantial misrepresentation when the institution itself, one of its representatives, or any ineligible institution, organization, or person with whom the eligible institution has an agreement to provide educational programs, marketing, advertising, recruiting or admissions services, makes a substantial misrepresentation about the nature of its educational program, its financial charges, or the employability of its graduates. Substantial misrepresentations are prohibited in all forms, including those made in any advertising, promotional materials, or in the marketing or sale of courses or programs of instruction offered by the institution.

Misrepresentation. Any false, erroneous or misleading statement an eligible institution, one of its representatives, or any ineligible institution, organization, or person with whom the eligible institution has an agreement to provide educational programs, or to provide marketing, advertising, recruiting or admissions services makes directly or indirectly to a student, prospective student or any member of the public, or to an accrediting agency, to a State agency, or to the Secretary. A misleading statement includes any statement that has the likelihood or tendency to mislead under the circumstances. A misleading statement may be included in the institution's marketing materials, website, or any other communication to students or prospective students. A statement is any communication made in writing, visually, orally, or through other means. Misrepresentation includes any statement that omits information in such a way as to make the statement false, erroneous, or misleading. Misrepresentation includes the dissemination of a student endorsement or testimonial that a student gives either under duress or because the institution required such an endorsement or testimonial to participate in a program. Misrepresentation also includes the omission of facts as defined under § 668.75.

Prospective student. Any individual who has contacted an eligible institution for the purpose of requesting information about enrolling at the institution or who has been contacted directly by the institution or indirectly through advertising about enrolling at the institution.

Substantial misrepresentation. Any misrepresentation, including omission of facts as defined under § 668.75, on which the person to whom it was made could reasonably be expected to rely, or has reasonably relied, to that person's detriment.

Notes of Decisions

Cited in 15 cases (3 in the last 5 years), 1985–2024 · leading case: Ass'n of Private Sector Colleges & Universities v. Duncan, 681 F.3d 427 (D.C. Cir. 2012).

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Ass'n of Private Sector Colleges & Universities v. Duncan, 681 F.3d 427 (D.C. Cir. 2012). · cites it 13× “” 34 C.F.R. § 668.71 (b) (2010). The 2002 regulations further defined “substantial misrepresentation ” as “[a]ny misrepresentation on which the person to *439 whom it was made could reasonably be expected to rely, or has reasonably relied, to that person’s detriment.”

Career Coll. Ass'n v. Duncan, 796 F. Supp. 2d 108 (D.D.C. 2011). · cites it 10× “14 (Final Rule at 66950-51 [AR 120-21]); the misrepresentation regulations, 34 C.F.R. § 668.71 (Final Rule at 66958-59 [AR 128-29]); and the State authorization regulations, 34 C.”

Manriquez v. DeVos, 345 F. Supp. 3d 1077 (N.D. Cal. 2018). “) In April 2015, the Secretary determined that Corinthian made false statements about its placement rates and issued a fine against Corinthian in the sum of $30 million for "substantial misrepresentation" under 34 C.F.R.§ 668.71 - 75. (Dkt. 35-5, Exs. 3-4; Dkt.”

Armstrong v. Accrediting Council for Continuing Educ. & Training, Inc., 168 F.3d 1362 (D.C. Cir. 1999). “§ 1094 (c) (1988); 34 C.F.R. §§ 668.71 -.75, 682.700-.710 (1988).”

Jackson v. Culinary Sch. of Washington, 788 F. Supp. 1233 (D.D.C. 1992). “§ 1094 ; 34 C.F.R. §§ 668.71 -.97 (Secretary’s power to enforce HEA requirements imposed upon the participating schools); 20 U.”

Roberts v. Bd. of Trs. of Cmty. Coll. Dist. No. 508, 2019 IL 123594 (Ill. 2019). “§ 1094(c)(3) (2012); 34 C.F.R. § 668.71 (a)-(b) (2013). Misrepresentation is defined as any false, erroneous, or misleading communication made, directly or indirectly, in writing, visually, orally, or through other means, including any statement that has the likelihood or…”

Roberts v. Bd. of Trs. of Cmty. Coll. Dist. No. 508, 2019 IL 123594 (Ill. 2019). “34 C.F.R. § 668.71 (c) (2012). -9- ¶ 32 Plaintiff contends that defendant misrepresented the nature of its educational program.”

Harrisburg Area Cmty. Coll. v. Pac. Employers Ins., 682 F. Supp. 805 (M.D. Penn. 1988). “§ 1094 (b) then in effect referring to civil penalties, and the enforcing regulations at 34 C.F.R. § 668.71 et seq., applied to HACC’s situation and that certain administrative remedies set forth in the regulations were not pursued.”

Chauffeur's Training Sch., Inc. v. Spellings, 478 F.3d 117 (2d Cir. 2007). · cites it 2× “610 (1987), misrepresentations in student enrollment contracts about arrangements with third party credit companies, see 34 C.F.R. §§ 668.71 , 668.72, 668.73 (1987), misrepresentations about eligibility for deferment of loan repayment, see 34 C.”

Career Coll. Ass'n v. Duncan (D.D.C. 2011). · cites it 10× “14 (Final Rule at 66950–51 [AR 120–21]); the misrepresentation regulations, 34 C.F.R. § 668.71 (Final Rule at 66958–59 [AR 128–29]); and the State authorization regulations, 34 C.”

Beth Rochel Seminary v. Bennett, 624 F. Supp. 911 (D.D.C. 1985). “The determination that plaintiff failed to satisfy the definition of the term “institution of higher education” is not a “termination” requiring a “hearing on the record” as called for in section 1094(b)(1)(D); see also 34 C.F.R. § 668.71 (e)(1) (no right to notice and hearing…”

Career Colleges & Schs. of Texas v. United States Dep't of Educ. (W.D. Tex. 2023). · cites it 2× “34 C.F.R. §§ 668.71 (c), 668.222(d) (2016).”

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