Provider and course closures

What happens when a PTE closes or a PTE or institution closes a course with current students

This information is for learners at a:

  • Private training establishment that closes (PTE closure) or
  • PTE or institution that stops offering a programme or micro-credential (course closure).

Providers include PTEs and institutions.

What is an institution?

In the context of this webpage, an institution is:

  • Te Pūkenga
  • Wānanga and
  • Government Training Establishments.

They can be accredited to deliver programmes or micro-credentials.

They are publicly funded so are unlikely to close as an institution, but can still close programmes or micro-credentials.

NZQA can withdraw an institution’s accreditation for a specific programme. Institutions will still operate except for that programme.

What is a PTE?

PTEs are private businesses. They must be registered with NZQA before they are accredited to deliver approved training.

PTEs must meet ongoing requirements in various NZQA rules to:

  • maintain registration with NZQA and
  • maintain accreditation to provide approved training.

NZQA can withdraw a PTE’s accreditation for training or cancel its registration if the PTE doesn’t meet the ongoing requirements.

Types of closure events

Course closure

A course closure may happen when a provider:

  • stops delivering a programme or micro-credential
  • stops delivering a particular programme or micro-credential from a particular delivery site
  • stops being a signatory to the Education (Pastoral Care of International Learners) Code of Practice 2021 and can no longer deliver to international learners, or
  • NZQA removes its accreditation or consent to assess.

A course closure will affect only the learners who haven’t completed that programme or micro-credential.

A course closure does not automatically mean that the provider will close.

PTE closure

A PTE might close if it:

  • no longer delivers or can no longer deliver any of its programmes or micro-credentials
  • can’t pay its debts on time and becomes insolvent
  • stops operating or loses its body corporate status, or
  • NZQA closes it.

If a PTE closes, all their programmes or micro-credentials will close too.

This will affect all current learners at a PTE if it can’t stay open until all learners complete their studies.

When a PTE suddenly closes

PTEs can close suddenly. The reason might be issues that learners wouldn’t notice or know about.

Sometimes it isn’t possible for the PTE to stay open. This is nearly always something that NZQA can't control.

Liquidations and receiverships are triggered by:

  • the PTE itself or
  • secured or unsecured creditors who the PTE owes money to.

If a liquidator or receiver is appointed, they get all control over the PTE.

The PTE may immediately stop delivering training if they have no money for day-to-day costs.

If a PTE closes and it cannot support its learners, NZQA and other public sector agencies will work together to ensure learners get support during the process.

What learners can do if a PTE closes

Step 1

Get a transcript of the training you've completed

PTEs should give learners an official transcript or statement confirming what courses they have successfully completed.

Step 2

Collect evidence of assessments you've started but haven't completed

It’s important that learners keep copies of their assessments and any feedback they’ve received.

If this information is held on an online learning platform (such as Moodle) we recommend that learners download and save these documents on their personal device.

This information is useful if you want to apply for Credit recognition and transfer (CRT) with a new PTE.

Step 3

Choose a new provider if you want to continue training

In most cases, the PTE that is closing will help learners transfer to another provider if they want to continue their training.

NZQA may also tell learners about alternative providers who offer similar programmes or micro-credentials.

If there are no alternative providers offering the exact programme or micro-credential NZQA can help learners identify the closest match.

Step 4

Get your prior learning recognised

If learners want to enrol with a new provider, they can ask the new provider if they can recognise their prior learning. Each provider has its own processes for this, so learners should ask the provider how to apply.

The provider will assess a learner’s previous studies and experience against the programme or micro-credential they provide to see how well it matches. If there is a good match, they will recognise the credits.

It’s important that learners keep any documentation from their current PTE so they can show the new provider.

Find out more about recognition of prior learning
Step 5

Transfer or get a refund of your remaining fees

If a learner has paid more than $500 including GST in fees to a PTE, those fees should be held in a trust. The PTE can only use those fees as they deliver the programme or micro-credential. What isn't used remains in the trust.

The remaining fees go to the new provider when the learner transfers there, or learners get a refund of the remaining fees if they don't enrol anywhere else.

If the new provider is a PTE, they also need to put any fees greater than $500 including GST in a trust.

Institutions don't need to put fees in a trust. They have other rules to make sure learners get refunds if a course closes or the learner withdraws early.

Choosing a new provider

In most cases, the PTE that is closing will identify other providers with similar programmes or micro-credentials for learners to transfer to.

However, learners can choose any new provider they like and any programme or micro-credential that suits their needs and interests.

NZQA recommends that learners look at registered education providers with a Category 1 or 2 External Evaluation and Review (EER) rating from NZQA.

Find education providers (external link)

Government agencies do not monitor or quality assure unregistered PTEs. It may be riskier to enrol with them.

Switching to a new provider

Once learners have decided on a new provider, they need to contact the provider and discuss a transfer.

The new provider may need to coordinate the learner’s fees and enrolment with TEC, StudyLink and the closing PTE’s trustee.

How providers support learners during a closure event

Providers must:

  • give learners as much information as possible about the closure event, including clear information about what learners’ options are and what documentation they will receive
  • help learners transfer to another provider if they want to continue their training. Transfer the learner’s remaining fees to the new provider
  • if learners don’t want to continue their studies, give them an appropriate refund of fees without unreasonable delays
    Go to learner withdrawals and refunds
  • minimise risk to learners’ welfare, including interruption of accommodation
  • protect New Zealand's reputation as a quality education destination
  • meet all relevant and reasonable costs related to the closure event.  This can include costs for:
    • assessing learners and recognition of prior learning or credit transfer
    • extra education or training that learners may need due to poor teaching or lack of teaching
    • transferring learners to programmes or micro-credentials at other education providers.

When a provider closes suddenly or is placed into liquidation or receivership, it may not be able to support learners in the all the ways listed above.

Learners may need to cover some of the costs themselves.

NZQA's role in closure events

NZQA makes sure that registered providers in New Zealand follow all the relevant rules for the study or training they provide.

If a provider breaches these rules, NZQA will work with them to ensure they follow the rules. Repeated or serious breaches can mean that NZQA closes a programme, micro-credential or the whole PTE. This is to make sure learners get quality study or training and value for money.

A provider may also choose to close a programme or micro-credential for any reason, including financial issues.

When the provider can't support learners

If a provider can’t support its learners, NZQA will help learners:

  • find a new provider to continue their study or training with
  • get in touch with other agencies that can help them.

These agencies may include:

  • Tertiary Education Commission
  • Immigration New Zealand
  • Ministry of Social Development – StudyLink.

NZQA can't be a liaison or advocate, but will direct learners to the best agency to help them with a specific question or issue.

Who to contact if you have further questions

Speak to your provider if you have questions about how the provider is handling a closure event.

Here are some agencies to contact for specific information and support.

Fees Free entitlements

Contact Tertiary Education Commission at:

mco@tec.govt.nz

Subject line: Closure enquiry

Financial support

StudyLink - 0800 88 99 00

Work and Income - 0800 559 009

Learners should have their client number handy.

Refund of fees

The trustee responsible for protecting learner fees.

The name of the trustee and its contact details will be in the learner’s enrolment information.

Questions about visas for international learners

Immigration New Zealand (INZ) - 0800 558 855

Learners should have their INZ client, application or passport number handy.

Independent legal support during a closure event

Community Law

www.communitylaw.org.nz (external link)

Citizens Advice Bureau

www.cab.org.nz (external link)

Contacting NZQA

If you have further questions or are not getting the information needed from your current PTE, please contact NZQA:

closuresupport@nzqa.govt.nz

Getting help with stress

It can be a stressful time when a provider closes. To talk to someone confidentially please contact:

The Samaritans

0800 726 666

www.samaritans.org.nz/contact (external link)

Lifeline

0800 543 354 (or free text HELP to 4357)

www.lifeline.org.nz/contact (external link)

Depression Helpline

0800 111 757

www.depression.org.nz/get-help (external link)

Get more information or give us feedback