New Jersey Assembly Bill A3744

New Jersey 2022-2023 Regular Session

• Introduced: 5/2/22
• Refer: 5/2/22

Caption

Establishes tuition reimbursement program for students enrolled in certain private postsecondary educational schools.

Impact

The bill mandates that each private career school contribute an amount, as determined by the commissioner, for every student enrolled, which will be deposited into the Tuition Protection Fund. Once the fund reaches $2,500,000, contributions will pause until the fund dips below $2,000,000. This initiative is expected to provide a safety net for students, particularly crucial in light of the risks associated with for-profit educational institutions closing unexpectedly, which has been a concern for both students and regulators alike.

Summary

Assembly Bill A3744 aims to establish a Proprietary Institutions Student Tuition Protection Fund within the Department of Labor and Workforce Development. This fund is designed to ensure equitable refunds for students enrolled in private career schools in the event that such schools close or cease operations. All private career schools operating within the state will be required to register and obtain a certificate of approval from the commissioner, as well as secure a performance bond to bolster financial accountability.

Conclusion

Overall, A3744 represents a legislative effort to safeguard students in postsecondary education from financial losses associated with the closure of private career schools, establishing a system that mandates accountability from educational institutions. Nevertheless, debate surrounding the balance between regulatory oversight and the operational flexibility of private schools will likely characterize discussions as the bill progresses.

Contention

Despite its protective intentions, A3744 could face controversy related to the regulatory burden it places on private career schools. Proponents are likely to argue that the bill enhances consumer protection, but critics may contend that it adds additional layers of bureaucracy that could stifle the operation of these educational institutions. The requirement for performance bonds may also be viewed as a financial strain for some schools, particularly smaller institutions that may struggle to meet the new financial requirements.