Student Tuition Recovery Fund

The STRF is a fund administered by the Bureau for Private Postsecondary Education (Bureau) that relieves or mitigates economic loss suffered by a student while enrolled in a qualifying institution - generally, one that is approved or registered by the Bureau. At the time of his or her enrollment, the student must have been a California resident or enrolled in a California residency program, prepaid tuition, and suffered economic loss.

Effective April 1, 2024, the Student Tuition Recovery Fund (STRF) assessment rate will change from two dollars and fifty cents ($2.50) per one thousand dollars ($1,000) of institutional charges to zero dollar ($0.00) per one thousand dollars ($1,000) of institutional charges. (5, CCR section 76120). Institutions will still be required to complete and submit all STRF Assessment Reporting Forms on a quarterly basis and maintain specified student information for STRF-eligible students.

STRF Requirements

Institutions approved or registered with the Bureau are required to comply with the following STRF requirements:

• Include STRF disclosures on both its enrollment agreement and school catalog (5 CCR Section 76215)
• Collect STRF assessments (if applicable) from each student in an educational program who is a California resident or is enrolled in a residency program (5, CCR section 76120)
• Collect the STRF assessment from each student in an educational program at the time it collects the first payment from or on behalf of the student at or after enrollment (5, CCR section 76130)
• Complete and submit quarterly STRF Assessment Reporting Form and remit payment (if applicable) to the Bureau no later than the last day of the month following the close of the quarter (5 CCR section 76130).

Frequently Asked Questions

Q: What is the amount of the STRF Assessment Fee?

A: The current STRF Assessment Fee is ($0.00) per one thousand dollars ($1,000) of institutional charges.

STRF Assessment Fee Chart (fee amount depends on date of enrollment)

Q: When should an institution collect the STRF Assessment Fee from a student?

A: 5, CCR section 76130(a)(1) states, "A qualifying institution shall collect the assessment from each student in an educational program at the time it collects the first payment from or on behalf of the student at or after enrollment. The assessment shall be collected for the entire period of enrollment, regardless of whether the student pays the institutional charges in increments."

Q: How should an institution collect and report the STRF Assessment Fee for students who do not prepay?

A: 5, CCR section 76130(a)(1) states, "A qualifying institution shall collect the assessment from each student in an educational program at the time it collects the first payment from or on behalf of the student at or after enrollment. The assessment shall be collected for the entire period of enrollment, regardless of whether the student pays the institutional charges in increments."

Q: How does an institution collect the STRF Assessment from students who leave a program and then re-enroll at a later date? (i.e., military students returning from deployment)

A: 5, CCR section 76130(a)(2), "The assessment to be collected from a re-enrolling student shall be limited to any amount that is due after crediting any prior assessment amount paid by the student. The enrollment agreement shall clearly identify any prior STRF assessment paid by the student."

Q: Does the STRF Assessment Fee apply to students whose tuitions and fees are covered 100% by VA or other state sources? If charges are being paid by a third party, who pays the STRF Assessment Fee?

A: 5, CCR section 76020(a) states, "The fund exists to relieve or mitigate economic losses suffered by a student while enrolled at a qualifying institution, who at the time of enrollment is or was a California resident or was enrolled in a California residency program, if the student enrolled in the institution and the student or a third-party payer, prepaid tuition, paid or is deemed to have paid the assessment and suffered economic loss as a result of any of the conditions specified in section 94923 of the Code or due to an institution losing its eligibility to receive a third-party payer benefit such as Cal Grant, Pell Grant, or veterans’ financial aid programs under Title 38 of the Code of Federal Regulations; 5, CCR section 76130(a)(1) states, "A qualifying institution shall collect the assessment from each student in an educational program at the time it collects the first payment from or on behalf of the student at or after enrollment. The assessment shall be collected for the entire period of enrollment, regardless of whether the student pays the institutional charges in increments."

Q: What do we need to list in our course catalog about the STRF Assessment Fee?

A: CEC section 94909(a)(14) states an institution shall provide a prospective student, either in writing or electronically, with a school catalog containing, among other things, "A description of the student's rights and responsibilities with respect to the Student Tuition Recovery Fund. This statement shall specify that it is a state requirement that a student who pays his or her tuition is required to pay a state-imposed assessment for the Student Tuition Recovery Fund. This statement shall also describe the purpose and operation of the Student Tuition Recovery Fund and the requirements for filing a claim against the Student Tuition Recovery Fund."

Q: We offer tuition at a discounted rate for students who meet certain requirements. How do we calculate their STRF Assessment Fee?

A: The STRF Assessment Fee is based on institutional charges. If a student is paying a discounted rate, then the STRF assessment fee will be charged according to the institutional charges reflected in the enrollment agreement.

Q: Can a school pay the STRF Assessment Fee on behalf of the student?

A: 5, CCR section 76120(a) states, "Each qualifying institution shall collect an assessment of zero dollars ($0.00) per one thousand dollars ($1,000) of institutional charges, rounded to the nearest thousand dollars, from each student in an educational program who is a California resident or is enrolled in a residency program. For institutional charges of one thousand dollars ($1,000) or less, the assessment is zero dollars ($0)."

Q: Where can I find the Enrollment Agreement Requirements?

A: CEC section 94911 and 5, CCR section 71800 cover requirements for enrollment agreements.

Q: What is considered an Institutional Charge?

A: CEC section 94844 states, "Institutional charges" means charges for an educational program paid directly to an institution.

Q: Is the STRF Assessment Fee refundable?

A: The STRF Assessment Fee is only refundable when an institution provides a full refund pursuant to CEC section 94919 or CEC section 94920.

Student Tuition Recovery Fund Definitions

CCR Section 76000. Definitions.

For purposes of this chapter, the following definitions apply:

(a) "California resident" means a person who resides in California at the time the enrollment agreement is signed or a person who receives lessons at a California mailing address from a qualifying institution offering distance education.

(b) "Closed institution" means an institution at which a closure has occurred.

(c) "Economic loss" means pecuniary loss, as defined in section 94923 of the Code. Economic loss also includes any "educational opportunity loss."

(d) "Educational opportunity loss" means a loss of eligibility for third-party payer benefits that is suffered by a California resident or a person enrolled in a California residency program because they are unable to complete an educational program due to the institution's closure or due to the institution losing its eligibility to receive third-party payer benefits and no replacement of that benefit is available from the third-party payer.

(e) "Fund" means the Student Tuition Recovery Fund.

(f) "Prepaid" describes any amount of money that an institution accepts in advance of rendering educational services.

(g) "Qualifying institution" is an approved institution that is subject to the provisions of Article 14, commencing with section 94923 of the Code, including out-of-state institutions registered with the Bureau pursuant to section 94801.5 of the Code.

(h) "Residency Program" means an educational program as defined in section 94837 of the Code at qualifying institution of which some portion of the instruction occurs as direct instruction as defined in section 71715(c).

(i) "STRF" means Student Tuition Recovery Fund.

(j) "Student Tuition Recovery Fund assessment" or "STRF assessment" means a state-imposed charge to fund this chapter that is required to be paid by a California resident student or a student enrolled in a residency program, who pays tuition to an institution.

(k) "Teach-out institution" means the institution offering a teach-out to a former student of an institution that has ceased to operate.

(l) "Third-party payer" means an employer, government program, or other entity that pays a student's charges when no separate agreement for the repayment of the charges exists between the third-party payer and the student.

Other Applicable Laws & Regulations:

* https://www.bppe.ca.gov/lawsregs/ppe_act.pdf
** https://www.bppe.ca.gov/lawsregs/regs.pdf

Contact Information:

All STUDENTS who have STRF- related inquiries, please email STRF@dca.ca.gov or call (888) 370-7589, press 6 when prompted

All INSTITUTIONS who have STRF Assessment-related inquiries, please email BPPE.STRFAssmntFee@dca.ca.gov