California Residents

The State of California established the Student Tuition Recovery Fund (STRF) to relieve or mitigate economic loss suffered by a student in an educational program at a qualifying institution, who is or was a California resident while enrolled, or was enrolled in a residency program, if the student enrolled in the institution, prepaid tuition, and suffered an economic loss.

Unless relieved of the obligation to do so, a student must pay the state-imposed assessment for the STRF, or it must be paid on their behalf, if they are a student in an educational program who is a California resident or is enrolled in a residency program, and the student prepaid all or part of their tuition.

A student is not eligible for protection from the STRF and is not required to pay the STRF assessment if they are not a California resident, or are not enrolled in a residency program.

The STRF assessment is non-refundable and occurs at the time the first payment is made with respect to a student's enrollment. The current assessment is calculated at the rate of $0.50 per $1,000 of institutional charges for a student's enrollment and educational program. The actual STRF assessment will appear on a student's ledger. If a student has previously enrolled in the University, any STRF assessment previously paid will be reviewed for adjustments and, if necessary, credited to their current assessment and will appear on a student's ledger.

It is important that students keep copies of their enrollment agreement, financial aid documents, receipts, or any other information that documents the amount paid to the school. Questions regarding the STRF may be directed to the Bureau for Private Postsecondary Education, 1747 North Market Blvd., Suite 225, Sacramento, CA 95833, (916) 574-8900 or (888) 370-7589.

To be eligible for STRF, a student must be a California resident or enrolled in a residency program, prepaid tuition, paid or deemed to have paid the STRF assessment, and suffered an economic loss as a result of any of the following:

1. The institution, a location of the institution, or an educational program offered by the institution was closed or discontinued, and a student did not choose to participate in a teach-out plan approved by the Bureau or did not complete a chosen teach-out plan approved by the Bureau.
2. A student was enrolled at an institution or a location of the institution within the 120 day period before the closure of the institution or location of the institution or was enrolled in an educational program within the 120 day period before the program was discontinued.
3. A student was enrolled at an institution or a location of the institution more than 120 days before the closure of the institution or location of the institution, in an educational program offered by the institution as to which the Bureau determined there was a significant decline in the quality or value of the program more than 120 days before closure.
4. The institution has been ordered to pay a refund by the Bureau but has failed to do so.
5. The institution has failed to pay or reimburse loan proceeds under a federal student loan program as required by law or has failed to pay or reimburse proceeds received by the institution in excess of tuition and other costs.
6. A student has been awarded restitution, a refund, or other monetary award by an arbitrator or court, based on a violation of this chapter by an institution or representative of an institution, but has been unable to collect the award from the institution.
7. A student sought legal counsel that resulted in the cancellation of one or more of their student loans and has an invoice for services rendered and evidence of the cancellation of the student loan or loans.

To qualify for STRF reimbursement, the application must be received within four (4) years from the date of the action or event that made the student eligible for recovery from STRF.

A student whose loan is revived by a loan holder or debt collector after a period of non-collection may, at any time, file a written application for recovery from STRF for the debt that would have otherwise been eligible for recovery. If it has been more than four (4) years since the action or event that made the student eligible, the student must have filed a written application for recovery within the original four (4) year period, unless the period has been extended by another act of law.

However, no claim can be paid to any student without a social security number or a taxpayer identification number.