Refunds for a "college" degree?

The New York Times reported today on the closing of Taylor Business Institute, a commercial 2-year business college in New York City. The New York State Education Department ordered the closing of Taylor following a panel report in August who found, among other things, that “In the bulk of its educational activities, the institute operates more as a high school equivalency preparation enterprise than as a college.”

The NY Board of Regents is in the midst of re-writing its regulations for accrediting commercial colleges, a process other states will have to revisit as these institutions continue to grow. This means having to face the difficult task of determining what it means to operate as a “college” in an increasingly diverse arena of institutions, students, and degrees. This is no small matter. Considering the cost (in Taylor’s case, $80,000 - $90,000 per student), it is important that state oversight be able to determine in a timely manner whether an education is sub-par.

State accreditation and monitoring is likely the best method of preventing colleges from selling students a bag of goods, but on a more adventurous note: if the students attending Taylor find that they aren’t qualified to attend another 2-year institution in New York City, should they get a refund?