What is the STRF (Student Tuition Recovery Fund) in California?

What is the STRF?

The Student Tuition Recovery Fund is a California fund administered by the BPPE under Article 14 of the California Private Postsecondary Education Act of 2009 (Education Code 94923 and following). It exists to relieve or mitigate economic loss suffered by students who are California residents, or enrolled in a residency program, and who prepaid all or part of their tuition at a qualifying school.

The regulations define a California resident as a person who lives in California when the enrollment agreement is signed, or who receives lessons at a California mailing address from a qualifying school offering distance education (5 CCR 76000(a)).

What is the current STRF assessment rate?

$0.00 per $1,000 of institutional charges, effective 1 April 2024 (5 CCR 76120). The Bureau's rate history:

The rate has changed five times since it was first set in 2010, so the business office should check it each quarter rather than hard-code it. The Act caps the fund at $25 million. If the Bureau stops collecting because the fund nears that cap, it resumes once the fund falls below $20 million (Education Code 94925).

How is the assessment worked out?

Per $1,000 of institutional charges, rounded to the nearest thousand dollars, for each student who is a California resident or in a residency program. For charges of $1,000 or less, the assessment is zero (5 CCR 76120). Institutional charges are the charges for a program paid directly to the school (Education Code 94844).

An example on a $14,800 program, rounded to $15,000:

When does a school collect it?

At the time it collects the first payment from or on behalf of the student, at or after enrollment. It covers the whole period of enrollment, even when the student pays the charges in installments (5 CCR 76130(a)(1)). So on a tuition payment plan, it rides on the deposit or first payment, not on each installment.

For a re-enrolling student, the school collects only what is still due after crediting any earlier assessment, and the enrollment agreement must show that prior assessment (5 CCR 76130(a)(2)).

Is the STRF assessment refundable?

Only when the school gives a full refund on cancellation. The Act says it is nonrefundable except when the school provides a full refund under Education Code 94919 or 94920 (Education Code 94924(c)). The regulations repeat it: refunded with a 100% cancellation refund, nonrefundable with a pro rata withdrawal refund (5 CCR 71750(a)(1)(B) and 71751(a)(3)(D)). The enrollment agreement must list it as a nonrefundable charge (Education Code 94911(b)). See tuition refund policy.

What does the school report, and when?

The STRF Assessment report, with any assessments collected, must reach the Bureau by the last day of the month after each quarter closes (5 CCR 76130(b)):

The report counts students who signed enrollment agreements, how many were STRF-eligible, how many made their first payment in the quarter, and the total rounded institutional charges for eligible students whose assessment was collected, with a declaration under penalty of perjury (5 CCR 76130(c)). The Bureau's STRF page says schools must keep filing every quarter while the rate is $0.00. Filing every prior report is a condition of renewal (5 CCR 76130(e)).

What records does the school keep for the STRF?

For each STRF-eligible student, in an electronic format the Bureau can inspect (5 CCR 76140):

• student ID, first and last name, email, local or mailing address, address at enrollment and home address
• the date the enrollment agreement was signed
• courses and course costs
• the STRF assessment collected and the quarter it was remitted
• third-party payer details
• total institutional charges charged and total paid

The last two fields are the student ledger: what was billed and what came in, by student. A Bureau request for copies has to be met within 14 calendar days.

General information, not legal advice. Confirm the current rate with the Bureau before each filing.