New Jersey Senate Bill S1658

New Jersey 2022-2023 Regular Session

• Introduced: 2/14/22
• Refer: 2/14/22

Caption

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

Impact

Under this legislation, private career schools will be required to obtain a performance bond to ensure the availability of refunds. In the event of a school's closure, students who have not received refunds will be allowed to apply for reimbursement. If a student's tuition was paid through State grants or scholarships, any refund will be directed to the respective authority, whereas excess amounts will be returned to the student directly. This aims to protect students' financial interests and provide a safety net against the financial instability of educational institutions.

Summary

Senate Bill 1658 seeks to establish a tuition reimbursement program for students enrolled in certain private postsecondary educational institutions. The bill proposes the creation of a Private Career School Student Tuition Protection Fund, designed to provide equitable refunds to students in the event of a school closure or insolvency. The fund will be managed by the Department of Labor and Workforce Development, and will accept payments from private career schools based on their student enrollment, ensuring that sufficient funds are available to reimburse eligible students.

Contention

The bill has raised some questions regarding the adequacy of funding, as it mandates schools contribute to the fund as long as its balance remains above a certain threshold. Critics might argue that the funding mechanism may not be sufficient in high-demand educational sectors or during economic downturns. Furthermore, the assignment of rights to the State by students for refund claims could lead to complications for individuals seeking personal recourse against non-compliant institutions, raising issues about the feasibility of navigating such legal obligations.