§ 32-3072 — Student tuition recovery fund

A. The student tuition recovery fund is established and shall be administered by the board. A person who is injured by a private postsecondary education institution ceasing operations may recover from the fund an amount that does not exceed the actual damages sustained.

B. Each private postsecondary education institution that collects prepaid tuition shall annually pay an assessment to the board for each newly enrolled student in an amount equal to the sum of two-tenths of one percent of the total course cost for each newly enrolled student, not to exceed $10 per student. A private postsecondary education institution is not required to pay more than $25,000 per annual assessment period. A private postsecondary education institution is not required to pay assessments for newly enrolled students who are not residents of this state and for whom the institution has paid a student tuition recovery fund assessment or an assessment to a similar fund in the student's state of residence. A private postsecondary education institution is not required to pay assessments for students who are not residents of this state and who are enrolled in distance learning instruction.

C. If on June 30 of any year the balance in the fund exceeds $500,000, and on notice by the board to institutions, only institutions and schools that are newly or provisionally licensed during or after that fiscal year then ended shall pay the assessment.