UNITED STATES DEPARTMENT OF EDUCATION
WASHINGTON, D.C. 20202
In the Matter of Docket No. 97-11-ST
LA NEWTON SCHOOL OF BEAUTY Student Financial
CULTURE, Assistance Proceeding
On January 2, 1997, the Office of Student Financial Assistance Programs (SFAP) of the U.S. Department of Education (Department) issued a notice of intent to terminate the eligibility of La Newton School of Beauty Culture (La Newton) to participate in the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965, as amended (Title IV). 20 U.S.C. § 1070 et seq. and 42 U.S.C. § 2751 et seq. La Newton filed a request for review, and both parties submitted briefs.
SFAP contends that La Newton is no longer eligible to participate in the Title IV
programs because La Newton does not meet the requirement that it be accredited by a nationally
recognized accrediting agency. In response, La Newton admits that its accreditation was
revoked, but argues that its eligibility should not be terminated because it has not exhausted its
remedies with its accrediting agency regarding its accreditation.
La Newton concedes that accreditation is a requirement for participation in Title IV
programs. §§ 600.5(a)(6), 600.2; 20 U.S.C. §§ 1088 and 1141.See footnote 11 La Newton further admits that
the Commission denied the school's appeal for renewal of accreditation and removed the school
from the Commission's list of accredited schools. Finally, La Newton acknowledges that the
Commission is recognized by the Department as a nationally recognized accrediting agency.
Nonetheless, La Newton argues that it has not exhausted all of its remedies with the Commission
regarding its accreditation because it could petition for a variance and have its accreditation
reinstated "in a very short time." This outcome, however, is merely speculative; even were I not
bound by the regulations discussed infra, I could not rely upon such speculation for a finding that
La Newton's eligibility should not be terminated. La Newton also argues that the Department
would not be harmed or prejudiced if the Secretary did not terminate the school, and that the
Secretary should exercise his discretion under § 600.41 not to terminate. La Newton's arguments
as to whether the Secretary should exercise his discretion in termination decisions are irrelevant
before this tribunal, because while the Secretary may have such discretion, the tribunal does not.
Specifically, § 600.41(e)(1) states as follows:
Since La Newton admits that it is no longer accredited by the Commission and, thus, no
longer meets applicable requirements with regard to accreditation, I find that, pursuant to §
600.41(e)(1), termination is warranted.
Judge Richard F. O'Hair
Dated: April 10, 1997
A copy of the attached initial decision was sent by certified mail, return receipt requested to the
Vesper Gibbs Barnes, Esq.
Attorney at Law
1750 Washington Street
Boston, MA 02118
Kelly J. Andrews, Esq.
Office of the General Counsel
U.S. Department of Education
600 Independence Avenue, S.W.
Washington, D.C. 20202-2110