This bill establishes a Private Career School Student Tuition Protection Fund within the Department of Labor and Workforce Development in New Jersey, aimed at providing equitable refunds to students in the event of a private career school's closure. Private career schools operating in the state are required to register with the Commissioner of Labor and Workforce Development, obtain a performance bond, and contribute to the fund based on the number of enrolled students. Contributions will cease when the fund balance reaches $2,500,000 but will resume if it falls below $2,000,000. The bill outlines the procedures for refund payments to students who are unable to complete their courses due to the school's insolvency or closure.

Additionally, the bill mandates that students who receive refunds must assign their rights to the State for any legal actions against the school or its owner regarding the reimbursed tuition. The State may then pursue recovery of funds from the school or its owner. The bill also stipulates that refunds for students who used state grants or scholarships will be directed to the Higher Education Student Assistance Authority, with any excess amount going directly to the student. Overall, the legislation aims to protect students' financial interests and ensure they receive refunds in a timely manner if their educational institution fails.