New JerseyCareer schools would fund student refunds after improper closures
A school-funded program would let eligible students seek tuition and fee refunds after improper closures, with payments limited to available money.
What it does
Students at private, nondegree career schools could seek refunds when closures that break state rules prevent them from finishing paid classes, or if they were enrolled within 90 days of those closures and are owed refunds. Payments would depend on available funds.
Private career schools would fund refunds through per-student charges. With state notice, charges would stop at $7.5 million and restart for new students if closures push the fund below $5 million.
Argument forEligible career school students could recover payments for unfinished training after improper closures, if the fund has enough money.
Argument againstSchools could face recurring per-student charges when closures drain the fund, including schools that remain open and continue teaching.
More detail
Eligible students would be able to apply for tuition and fee refunds. Colleges and schools licensed to offer academic degrees would be excluded. The closure must break the state's school closure rules. Payments would depend on money available in the fund. Refund recipients would transfer to the state their right to sue the school or owner for the amounts reimbursed. The program would take effect 180 days after enactment.
Private career schools would pay state-set charges into the student refund fund. Schools would pay a charge for each enrolled student. The charges would not count as tuition and fees. After state notice, payments would pause at $7.5 million and restart for newly enrolled students if closures bring the balance below $5 million. Restarted payments would continue until the fund reaches $7.5 million. These requirements would take effect 180 days after enactment.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 29Received in the Assembly, Referred to Assembly Higher Education CommitteeLatest
- Oct 22Passed by the Senate (26-13)Passed 1st Chamber
- Oct 5Reported from Senate Committee with Amendments, 2nd ReadingMinor
- Jan 13Introduced in the Senate, Referred to Senate Higher Education CommitteeIntroduced
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