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What is State Student Tuition Recovery Funds?

State Student Tuition Recovery Funds Overview

The State Tuition Recovery Fund (STRF) in any state is designed to be a resource and place for students to turn should they be victimized by one of many different circumstances relative to paying tuition for a state certified vocational, technical, or post secondary educational program or school.  These funds are managed by each state and the specific details for each state may vary.  Some of the anticipated uses for this fund are for students that have taken an economic loss relative to tuition, the following is a partial list of possible qualifying reasons for relief from this fund

  1. School closure or the ending of the particular program for which the student had paid tuition.
  2. If the school was expected to forward funds to other institutions or certification organizations including state testing agencies and yet failed to do so within 6 months of the school closing.
  3. If the school failed to supply within 6 months of closure the materials and or equipment the student had paid the school to obtain as a part of the program.
  4. The amount of excess or required funds that were provided by student loans for the student specifically and yet paid to the school and the school failed to give the student their allocated portion.
  5. If the school breaches their contract with the student relative to the coursework and program expectations and design.
  6. The school was fraudulent in their recruitment of students and made untrue claims.
  7. If the student obtained a court judgment against a school and were unable to collect on that judgment.
  8. If the quality of coursework significantly declined for a period of time prior to closure.
  9. If the school collected advance tuition or offered reduced future tuition for prepayment.

For most states you must be a resident of that state in order to qualify for access to the STRF and you must have attended an institution that participated in the STRF program for that state.  In other words, the fund itself operates similar to an insurance fund.  If the school paid into the fund then the students of that school have the ability to seek economic recovery from that fund.

The STRF program will normally not pay for reimbursement if the reimbursement is being sought on behalf of a third party and not to the student directly.  For example, if the student had their tuition paid by their employer or some other agency and the student is seeking recovery that will be passed through to that employer or agency they are not eligible to seek that recovery from the STRF in most states.  The fund is designed for students themselves who have suffered a loss due to a schools fraudulent activity, negligence, or closure and it is not designed as a recovery mechanism for employers and agencies that have the ability to sustain economic loss easier than an individual student.  It is important to seek out the specific rules for the recovery fund in the state where the school is operating because each states specific rules may vary.


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