2006 Minnesota Statutes

141.28 PROHIBITIONS.
    Subdivision 1. Not to advertise state approval. Schools, agents of schools, and solicitors
may not advertise or represent in writing or orally that such school is approved or accredited by
the state of Minnesota, except that any school, agent, or solicitor may advertise that the school
and solicitor have been duly licensed by the state using the following language:
"(Name of school) is licensed as a private career school with the Minnesota Office of Higher
Education. Licensure is not an endorsement of the institution. Credits earned at the institution
may not transfer to all other institutions. The educational programs may not meet the needs of
every student or employer."
    Subd. 2. Unlawful designation. No school organized after November 15, 1969, shall apply
to itself either as a part of its name or in any other manner the designation of "college" or
"university" unless such school applies for and receives certification from the office that it meets
appropriate standards and is entitled to such designation. Operating schools now using such
designation may continue use thereof.
    Subd. 3. False statements. A school, agent, or solicitor shall not make, or cause to be
made, any statement or representation, oral, written or visual, in connection with the offering or
publicizing of a program, if the school, agent, or solicitor knows or reasonably should have
known the statement or representation to be false, fraudulent, deceptive, substantially inaccurate,
or misleading.
    Subd. 4. Acceptance of contracts. No school shall accept contracts, enrollment agreements
or enrollment applications from an agent or solicitor who does not have a current permit.
    Subd. 5. Improbable program completion or employment. A school, agent, or solicitor
shall not enroll a prospective student when it is obvious that the prospective student is unlikely to
successfully complete a program or is unlikely to qualify for employment in the vocation or field
for which the preparation is designed unless this fact is affirmatively disclosed to the prospective
student. If a prospective student expresses a desire to enroll after such disclosure, a disclaimer
may be obtained by the school. The disclaimer shall be signed by the student and shall state
substantially one or both of the following: "I am fully aware that it is unlikely I will be able to
successfully complete the program" and "I am fully aware of the improbability or impossibility
that I will qualify for employment in the vocation or field for which the program was designed."
    Subd. 6. Financial aid payments. (a) All schools must collect, assess, and distribute funds
received from loans or other financial aid as provided in this subdivision.
(b) Student loans or other financial aid funds received from federal, state, or local
governments or administered in accordance with federal student financial assistance programs
under title IV of the Higher Education Act of 1965, as amended, United States Code, title 20,
chapter 28, must be collected and applied as provided by applicable federal, state, or local law or
regulation.
(c) Student loans or other financial aid assistance received from a bank, finance or credit
card company, or other private lender must be collected or disbursed as provided in paragraphs
(d) and (e).
(d) Loans or other financial aid payments for amounts greater than $3,000 must be disbursed:
(1) in two equal disbursements, if the term length is more than four months. The loan or
payment amounts may be disbursed no earlier than the first day the student attends class with the
remainder to be disbursed halfway through the term; or
(2) in three equal disbursements, if the term length is more than six months. The loan or
payment amounts may be disbursed no earlier than the first day the student attends class, one-third
of the way through the term, and two-thirds of the way through the term.
(e) Loans or other financial aid payments for amounts less than $3,000 may be disbursed as a
single disbursement on the first day a student attends class, regardless of term length.
(f) No school may enter into a contract or agreement with, or receive any money from, a
bank, finance or credit card company, or other private lender, unless the private lender follows the
requirements for disbursements provided in paragraphs (d) and (e).
History: 1969 c 866 s 8; 1973 c 714 s 13-15; 1Sp1985 c 11 s 73; 1986 c 444; 1992 c 513 art
1 s 27; 1995 c 212 art 3 s 59; 1999 c 214 art 3 s 29,30; 2005 c 107 art 2 s 60; art 3 s 15,16