Protecting students when providers are at risk of closing
Provider closure: What we expect providers to do
Institutional closures can sometimes be unforeseen, escalate quickly and require a lot of work to manage. We have seen that universities and colleges are not always aware of the scale of the challenges involved, or what a route to closure looks like.
Risk management and contingency planning can help prepare for potential closure, and increases the likelihood of achieving an orderly exit should the situation arise.
We encourage institutions to think in advance about how they would put student protection measures in place so that their students are supported to complete their studies.
There are steps that all providers can take to plan for the risk of closure.
Monitor financial risks
As part of good management and governance, a provider’s governing body should be regularly considering and managing any financial risks it might be exposed to that could give rise to a risk of closure.
Governing bodies should be aware of their responsibilities in this area and engage in scenario-based discussions on what would happen in the event of insolvency.
Engage with the OfS early
Providers are required to report to us if they identify any factors that might lead to a risk of closure, for example a significant change in finances, concerns over under recruitment of students, or the ending of partnership with its validator.
We encourage providers in this situation to engage with us openly and early. This is to enable conversations that can ensure effective plans are in place to protect students if the risk of closure materialises. It can help find solutions to problems, align aims, and understand expectations.
Develop contingency plans
Providers’ business as usual processes should incorporate contingency planning to ensure that all affected students would be protected in the event of closure.
Providers should think in advance about how they could implement student protection measures quickly, so that students are supported to complete their studies. Aspects to consider include:
- plans to teach out students, or if this is not possible, map courses to identify providers students could transfer to
- ensuring their student records are kept up to date and that data sharing agreements are in place to enable their transfer to other providers
- establishing plans to provide support to students throughout the process which take into account circumstances of different student groups, such as those with protected characteristics
- drafting communications plans to inform students of the news so they understand what it means for them and can make informed choices on their next steps.
Providers who are planning to receive students should think about modelling the impact on their own finances. They should also think about course mapping and what support to provide students who are transferring, including reviewing how smoothly the process has gone for students.
Our experience has shown that where contingency planning is done in advance, it can reduce the pressure on providers facing a potential crisis. It also may allow us to impose fewer regulatory requirements.
Our insight brief on protecting the interests of students when universities and colleges close has more detailed examples of things universities and colleges could consider in their contingency plans.
Be aware of validating partner responsibilities
Where a provider with degree awarding powers validates a course delivered at another, the validating provider is responsible for the quality of the course and the standards of the awards.
If the validated provider closes, the validating provider has responsibility for the affected students. They should have arrangements in place to offer support for students if their delivery partners are at risk of closure.
Such plans might include ensuring that data sharing agreements allow for transfer of student records.
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