Relates to degree-granting proprietary colleges; creates the proprietary college tuition reimbursement account for the refund of tuition paid by eligible students asserting certain violations; establishes an assessment to be paid by proprietary schools to fund the account.
Summary
Bill A05517, known as the "degree-granting proprietary college supervision and student protection act," aims to amend the education law to establish a proprietary college tuition reimbursement account. This account will be funded by annual fees assessed on proprietary degree-granting colleges based on their gross annual income. The bill outlines a structured fee schedule and mandates that colleges pay these fees quarterly. The funds collected will be used to reimburse students who have been harmed by violations related to their education, particularly in cases where colleges fail to provide refunds for tuition paid by students who assert valid complaints.
Impact
The bill will significantly impact state laws governing proprietary colleges by introducing a new financial accountability mechanism through the tuition reimbursement account. It establishes a formal process for students to claim refunds for tuition based on specific criteria, thereby enhancing consumer protection for students attending proprietary colleges. Additionally, the bill mandates that colleges face penalties, such as enrollment caps, for failing to comply with payment requirements to the reimbursement account, thus enforcing stricter regulations on these institutions.
Sentiment
The general sentiment surrounding Bill A05517 appears to be supportive among advocates for student rights and consumer protection. However, there may be concerns from proprietary colleges regarding the financial implications of the fee assessments and the potential administrative burden of complying with the new regulations. The absence of recorded votes and committee discussions suggests that the bill is still in the early stages of legislative consideration, and further debate may shape its final form.
Contention
Notable points of contention may arise from proprietary colleges regarding the fairness and impact of the fee assessment structure, particularly how it may disproportionately affect smaller institutions. Additionally, there could be disagreements over the adequacy of the complaint process and the criteria for determining eligibility for refunds, with concerns about potential misuse or overreach in refund claims. Stakeholders from both sides may express differing views on the balance between protecting students and ensuring the viability of proprietary colleges.
Phases out State tuition aid grants for students enrolled in proprietary institutions of higher education; redirects State tuition aid grant funding for students enrolled in proprietary institutions to summer tuition aid grant program.
Applies provisions of "New Jersey College Student and Parent Consumer Information Act" to proprietary schools and limits eligibility for State student assistance programs to students enrolled in certain proprietary schools.
Requires colleges, universities, professional, proprietary and graduate schools to provide written notice to all students of the institution's tuition liability policy.
Authorizes the transfer of funds from the tuition reimbursement account to the proprietary vocational school supervision account in the event that the net balance of the tuition reimbursement account is in excess of two million five hundred thousand dollars.
Requires colleges, universities, professional, proprietary and graduate schools to provide written notice to all students of the institution's tuition liability policy.
Requires colleges, universities, professional, proprietary and graduate schools to provide written notice to all students of the institution's tuition liability policy.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain propriety institutions to develop pathway systems to graduation.
Directs Secretary of Higher Education to revoke proprietary school's license to award academic degrees if school fails to achieve certain minimum graduation rates.
Applies provisions of "New Jersey College Student and Parent Consumer Information Act" to proprietary schools and limits eligibility for State student assistance programs to students enrolled in certain proprietary schools.
Establishes provisions for use of applicant and student criminal history at institution of higher education and degree-granting proprietary institution.