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Chapter 6. Student Tuition Recovery Fund. General Provisions. Student Tuition Recovery Fund (STRF).   

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(a) The fund exists to relieve or mitigate economic losses suffered by a student in an educational program as defined in section 94837 of the Code at a qualifying institution, who is or was a California resident or was enrolled in a residency program, if the student enrolled in the institution, prepaid tuition, paid the assessment, and suffered loss as a result of any of the following:

(1) The closure of the institution;

(2) The institution's failure to pay refunds or charges on behalf of a student to a third party for license fees or any other purposes, or to provide equipment or materials for which a charge was collected within 180 days before the closure of the institution;

(3) The institution's failure to pay or reimburse loan proceeds under a federally guaranteed student loan program as required by law or to pay or reimburse proceeds received by the institution prior to closure in excess of tuition and other costs;

(4) A significant decline in the quality or value of the educational program within the 30-day period before the closure of the institution or, if the decline began before that period, the period of decline determined by the Bureau, to a degree that results in the institution's failure to meet minimum operating or academic standards; and

(5) The student's inability to collect a judgment entered against a qualifying institution for a violation of the Act, subject to all of the following:

(A) The student has reasonably tried, and failed, to collect on the judgment. The Bureau will determine the reasonableness of the effort on a case-by-case basis;

(B) The Bureau receives the student's application within 4 years from the school's closure;

(C) The student has not received reimbursement or forgiveness from any other source.

(b) A student whose total charges were paid by a third-party payer is not eligible to make a claim.

Authority cited:

Education Code 94803

Education Code 94877

Education Code 94923

Reference:

Education Code 94874.1

Education Code 94923

Education Code 94926

Education Code 94927

Education Code 94927.5

(Amended by Register 2011, No. 15.)