Senate Bill 631 aims to enhance student financial protection at private for-profit colleges in Wisconsin by increasing the student protection fee and establishing a reserve account requirement for these institutions. The bill sets the student protection fee at $3 per $1,000 of adjusted gross annual school revenue and raises the threshold for discontinuing the collection of these fees from $1,000,000 to $5,000,000. Additionally, it mandates that the Department of Safety and Professional Services (DSPS) cannot approve a proprietary school unless it maintains a reserve account to indemnify students who suffer losses due to fraud, false representation, or the school's failure to fulfill its contractual obligations, including closure.

The legislation also specifies that the reserve account must hold at least 25% of the school's highest annual revenue from the previous five years, with a provision for new schools to base this on projected first-year revenue. The bill amends existing statutes to reflect these changes, including the language regarding the student protection fee and the fund balance threshold for fee collection. Overall, the bill seeks to provide greater financial security for students attending private postsecondary institutions in Wisconsin.

Statutes affected:
Bill Text: 440.52(10)(c)4, 440.52, 440.52(10)(cm)