Student Tuition Recovery Fund

Student Tuition Recovery Fund

Student Tuition Recovery Fund

California law requires that, upon enrollment, a fee be assessed to the cost of tuition (educational Code Section 94343). These fees support the Student Recovery Fund (STRF), a special fund established by the California Legislature to reimburse students who might other wise experience a financial loss as a result of school closure, the institution s breach or anticipatory breach of the agreement for the course of instruction, or a decline in the quality of the courser of instruction with a 30 day period before the instruction closure. The fund protects only California students. Institutional participation is mandatory.

It is important that enrollees keep a copy of any enrollment agreement, contract, or application to document the total amount of tuition paid. Such records will substantiate a claim for reimbursement from the STRF, which, to be considered, must be filed within one year of the Bureau s service on the students of their rights under the STRF, or if no notice of rights are served to the students, within four years of the institutions closure. For further information or instruction contact:

The Bureau For Private Postsecondary and Vocational Education
400 R Street, Suite 5000
Sacramento, CA 95814

Effective January 1, 2002, AB 201 amends various statutes relating to the Student Tuition Recovery Fund (STRF) programs, including, but not limited to the following:

Excludes from assessment each institution that receives all of its student's total charges from third party payer. A third party payer+means an employer, government program, or other payer that pays a student s total charges directly to the institution when no separate agreement for the repayment of that payment exists between the third-party and the student. (New Education Code §94545(a)):

  • Requires institutions not otherwise exempt to collect the amount to be assessed by the bureau from it new students in the form of a Student Tuition Recovery Funds Fee (New Education Code §94945).
  • Requires institutions to include a statement in all agreements for educational services that (a) if a student is the recipient of third party payer tuition and course cost that the student is NOT eligible for protection under the STRF, and (b) the student is responsible for paying the state assessment amount for the student Tuition Recovery Fund (New Education §94810(a)(10), (11))
  • Requires institutions to amend their schedules of student charges to include notice to the student assessment for the STRF. (New Education Code §94825).

There is one major change to be aware of before January 1, 2002: the new method
for calculating STRF regular assessments. Currently, Education section §94945 (a)(1) requires collection of a STRF regular assessment from institutions for all eligible students if the institution collects any moneys in advance of rendering services The assessment ranges from $2.50 to $5.50 per student, depending upon total course cost Effective January 1, 2002 to December 31, 2002, AB201 amends the aforementioned regular assessment provision and, instead requires that institutions collect from each newly enrolled student a STRF fee in the amount of $3.00 per thousand dollars of tuition paid, regardless of the
portion that is prepaid. On January 1, 2003 the rate will be reduced to $2.50 per thousand of tuition paid per student. The STRF fees collected must then be remitted to the Bureau of Private Postsecondary and Vocational Education during the quarter immediately following the quarter in which the fees were collected from the students (New Education code §94945(a)(1).

If you have any questions on these January 1, 2002 changes to the Student Recovery Fund assessments, call the STRF Unit at (916) 445-3428, extension 3027.