This bill establishes a Student Tuition Recovery Fund within the Office of the Secretary of Higher Education to provide compensation to students affected by the closure or fraudulent practices of proprietary institutions licensed to offer academic degrees. The fund will be financed by an initial deposit of $2,500 from each institution, along with a fee for each academic semester or term, which will be determined by the Secretary of Higher Education but will not be less than $1 per $1,000 in institutional charges. The fund aims to mitigate the economic losses incurred by students due to such institutional failures.

Additionally, the bill outlines a process for students to apply for reimbursement from the fund, requiring proof of residency, proof of payment, and an explanation of the claim's nature. The Secretary of Higher Education is tasked with administering the fund and may reimburse students for their actual economic losses, while also pursuing loan cancellations or discharges for those with outstanding student loan obligations related to the failed institution. Claims against the fund can be submitted for up to six years after a student separates from the institution, and the Office of the Attorney General is authorized to initiate claims on behalf of students.

Statutes affected:
Introduced: 18A:3B-92