32-3072. Student tuition recovery fund

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

B. Except as provided in subsection D of this section, each private postsecondary education institution which 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 per cent of the total course cost for each newly enrolled student. A private postsecondary institution shall not be required to pay assessments for newly enrolled students who are not residents of this state 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 institution shall not be required to pay assessments for students who are not residents of this state and who are enrolled in distance learning instruction.

C. The total assessment for each newly enrolled student shall not be more than ten dollars. If on June 30 of any year the balance in the fund exceeds five hundred thousand dollars, 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.

D. Institutions accredited by a regional or specialized accrediting agency recognized by the United States department of education are exempt from this section.