What happens when a provider closes or cancels a course

What a private training establishment (PTE) needs to do when they close or cancel a course

Sometimes education providers have to close a course. When this happens the PTE is responsible for ensuring that the fees of its learners are protected.

When a private training establishment (PTE) closes it is referred to as a 'closure event'.

Reasons why a PTE might close

A PTE may close a course because it:

  • is no longer delivering or capable of delivering the programme or training scheme
  • ceases to be a signatory to the Education (Pastoral Care of International Students) Code of Practice 2021
  • is closed following regulatory action by NZQA
  • becomes insolvent or
  • ceases to operate or loses its body corporate status.

If NZQA has serious concerns we may close a course

We do this by:

  • cancelling the PTE’s registration
  • withdrawing the PTE’s programme approval or accreditation
  • withdrawng the PTE’s training scheme approval or
  • withdrawing the PTE’s consent to assess against standards

Our processes allow for a PTE in this position to provide feedback and information before we decide whether to take the action that is being considered.

In most cases, NZQA takes on a coordinating role, to ensure the interests of all parties are represented.

We will liaise with the relevant stakeholders (including affected students) when managing a closure to ensure everyone is aware of the situation and the necessary next steps.

How PTEs must support learners

When a programme or training scheme closes for any reason. PTEs must ensure that:

  • students are kept well informed and understand the options that are available to them
  • students who choose to transfer to an alternative education organisation will continue their tuition with minimal disruption
  • students who discontinue tuition receive the appropriate refund of fees without undue delays.
    Go to student withdrawals and refunds
  • risk to student welfare, including interruption of accommodation, is minimised
  • disruption to other organisations involved is minimised
  • New Zealand's reputation as a quality education destination is protected
  • all relevant and reasonable costs relating to students associated with the cessation of the course are met.

Relevant and reasonable costs

These include costs related to:

  • assessments of students or recognition of prior learning or credit transfer that may be required
  • student education or training needed due to poor lack of teaching provision, and
  • transfer of students to courses at other education providers.

Find out more

Information for PTEs - student fee protection 

Information for students - student fee protection

Fee protection for international learners

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