§ 5002. Standards for licensed private career schools. Any school\nlicensed pursuant to section five thousand one of this article shall be\norganized and conducted only as a school and shall be subject to the\njurisdiction of the department exclusively, or in conjunction with such\nother state agency or department or district attorney upon which\njurisdiction has also been conferred by law. Such schools shall be\nsubject to and comply with the provisions of this section.\n 1. Standards. a. No program of such schools shall be conducted in a\nfactory or commercial establishment, except where the use of facilities\nor equipment of such factory or commercial establishment is permitted\nfor necessary or desirable educational purposes and objectives.\n b. For every such school, the commissioner shall set forth in\nregulation standards governing all of the following:\n (1) criteria for admission, which shall provide that students at least\npossess a high school diploma or its equivalent or demonstrate the\nability to benefit from the instruction, except that in the case of\nstudents who do not possess a high school diploma or its equivalent,\ncertification of the students' ability to benefit from instruction shall\nbe provided to the commissioner as provided in paragraph c of this\nsubdivision;\n (2) the standards and the methods of instruction;\n (3) the equipment available for instruction with the maximum\nenrollment that such equipment and physical plant will accommodate;\n (4) the qualifications and experience of teaching and management\npersonnel;\n (5) the form and content of the student enrollment agreement or\ncontract, provided that such agreement or contract shall be written in\nthe same language as that principally used in the sales presentation;\n (6) the methods of collecting tuition;\n (7) eligibility criteria for programs that will require licensure;\n (8) the sufficiency and suitability of the resources available for the\nsupport of such school; and\n (9) counseling provided to students.\n b-1. (1) Student loans or other financial aid funds received from\nfederal, state, or local governments or administered under the federal\nstudent financial assistance programs governed by Title IV of the Higher\nEducation Act of nineteen hundred sixty-five, 20 U.S.C. section 1070 et\nseq., as amended, must be collected and applied in the manner as\ncontrolled by the applicable federal, state or local regulations.\n (2) Student loans or other financial aid funds received from private\nentities, including, but not limited to, banks, financing companies, and\nother lending sources must be collected or disbursed in the following\nmanner:\n (A) Loans or other financial aid payments for amounts of five thousand\ndollars or less may be disbursed as a single disbursement, regardless of\ncourse length.\n (B) Loans or other financial aid payments for amounts greater than\nfive thousand dollars that reflect a class term of less than six months\nshall have two equal disbursements. The disbursement schedule for such\nloans or payments shall be as follows: one-half of the tuition amount\nreleased initially, and the remainder released halfway through the\ncourse term.\n (C) Loans or other financial aid payments for amounts greater than\nfive thousand dollars that reflect a class term of greater than six\nmonths, but less than twelve months must have three equal disbursements.\nThe disbursement schedule for such loans or payments shall be as\nfollows: one-third of the tuition amount released initially, the second\ndisbursement shall be released one-third of the way through the length\nof the training, and the remainder released two-thirds of the way\nthrough the course term.\n (D) Loans of other financial aid payments for amounts greater than\nfive thousand dollars that reflect a class term greater than twelve\nmonths shall have four equal disbursements. The disbursement schedule\nfor such loans or payments shall be as follows: o
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