Understanding the Student Tuition Recovery Fund Requirements

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. The Student Tuition Recovery Fund (STRF) is a fund administered in the state of California 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. The State of California created the Student Tuition Recovery Fund (STRF) to relieve or mitigate economic losses suffered by students in educational programs who are California residents, or are enrolled in a residency programs attending certain schools regulated by the Bureau for Private Postsecondary and Vocational Education.

Eligibility for STRF Protection

To be eligible for protection from the STRF, certain conditions must be met. A student must be 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.

Residency Requirement

To qualify for STRF, you must be a student in an educational program, who is a California resident, or are enrolled in a residency program, and prepay all or part of your tuition either by cash, guaranteed student loans, or personal loans.

Exclusions from STRF Assessment

You are not eligible for protection from the STRF and you are not required to pay the STRF assessment if either of the following applies:

You are not a California resident, or are not enrolled in a residency program.
Your total charges are paid by a third party, such as an employer, government program or other payer, and you have no separate agreement to repay the third party.
Your total charges are not paid by any third-party payer such as an employer, government program or other payer unless you have a separate agreement to repay the third party.

What Constitutes Economic Loss?

The STRF is designed to relieve or mitigate economic loss. 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.

Documentation and Record Keeping

It is important that you keep copies of your enrollment agreement, financial aid documents, receipts, or any other information that documents the amount paid to the school. It is important that enrollees keep a copy of any enrollment agreement, contract, or application to document enrollment, tuition receipts, or canceled checks. They are encouraged to document the total amount of tuition paid and records that will show the percentage of the course which has been completed.

STRF Assessment Fee

California law requires that upon enrollment a fee be assessed relative to the cost of tuition (Education Code Section 94342). These fees support the Student Tuition Recovery Fund (STRF), a special fund established by the California Legislature to reimburse students who might otherwise experience a financial loss as a result of untimely school closure. The STRF Assessment Fee is based on institutional charges.

Loan Revival and STRF Claims

A student whose loan is revived by a loan holder or debt collector after a period of noncollection may, at any time, file a written application for recovery from STRF for the debt that would have otherwise been eligible for recovery.