Idaho State Statutes - Idaho Attorney Directory

(1)
There is hereby created in the state treasury the student tuition recovery
account to be administered by the board for the purpose of relieving or
mitigating pecuniary losses suffered by any Idaho resident who is a student of
a school registered under the provisions of this chapter and who meets either
of the following conditions:
(a) The student was enrolled in a school prior to the school's closure,
had prepaid tuition, and suffered loss as a result of:
(i) The closure of the school; or
(ii) The school's breach or anticipatory breach of the agreement for
the course of study.
For the purpose of this section, "closure" includes closure of a branch or
satellite campus, the termination of either the correspondence or residence
portion of a home study or correspondence course, and the termination of a
course of study for some or all of the students enrolled in the course before
the time the students have satisfactorily completed the program, or before a
student who has been continuously enrolled in a course of study had been
permitted to complete all the educational services and classes that comprise
the course.
(b) The student obtained a judgment against the institution for any
violation of the provisions of this chapter or rules promulgated pursuant
to this chapter, and the student certifies that the judgment cannot be
collected after diligent collection efforts.
(2) Payments from the account to any student shall be subject to rules
and conditions as the board shall prescribe.
(a) The school shall provide to the board at the time of the school's
closure the names and addresses of persons who were students of the school
within sixty (60) days prior to its closure, and shall notify these
students within thirty (30) days prior to the school's closure, of their
rights under the student tuition recovery account and how to apply for
payment.
(b) If the school fails to comply with the provisions of this section,
the board shall attempt to obtain the names and addresses of these
students and shall notify them, within ninety (90) days of the school's
closure, of their rights under the student tuition recovery account and
how to apply for payment. The board may require the school to reimburse
the board for all reasonable costs and expenses incurred in notifying
students.
(c) The board shall develop a form fully explaining a student's rights,
which shall be used by the school or the board to comply with the notice
requirement. The form shall include or be accompanied by a claim
application form and an explanation of how to complete the application.
(d) Students filing for payment from the student tuition account as a
result of the closure of a school must submit the claim within one (1)
year from the school's or board's service of notice on the student or
within two (2) years of the closure of the school, whichever is earlier.
(3) Students entitled to payment shall file with the state board of
education a verified application including, but not limited to each of the
following:
(a) The student's name, address, telephone number and social security
number.
(b) If any portion of the tuition was paid from the proceeds of a loan,
the name of the lender and any state or federal agency that guaranteed the
loan.
(c) The amount of the prepaid tuition.
(d) The dates the student started and ceased attending the school.
(e) A description of the reasons the student ceased attending the school.
(f) If the student ceased attending because of a breach or anticipatory
breach, a statement describing in detail the nature of the economic loss
incurred.
(4) Students entitled to payment based on a judgment shall file with the
board a verified application indicating the student's name, address, telephone
number and social security number, the amount of the judgment obtained against
the school, a statement that the judgment cannot be collected, and a
description of the efforts attempted to enforce the judgment. The application
shall be accompanied by a certified copy of the judgment and any other
documents indicating the student's efforts made to enforce the judgment. The
application shall be filed with the board within two (2) years after the date
upon which the judgment became final.
(5) If the board pays the claim, the amount of the payment shall be the
total amount of the student's economic loss, although the amount of the
payment shall in no event exceed the amount of the student's tuition and cost
of equipment and materials related to the course of study plus interest on all
student loans used to pay tuition, equipment and materials. Upon payment of
the claim, the board shall be subrogated to all of the student's rights
against the school to the extent of the amount of the payment. If the board
receives several claims from students, the payment of which cannot be totally
covered by the student tuition recovery account, the claims shall receive a
prorata [pro rata] share of the account.
(6) If the board denies a claim, the board shall notify the student of
the denial and of the student's right to request a hearing within thirty (30)
days. The hearing shall be held pursuant to the administrative procedure act,
chapter 52, title 67, Idaho Code. If a hearing is not requested the board's
decision shall be final.
(7) It is the intent of the legislature that, when a student is enrolled
in a school that closes prior to the completion of the student's program, the
student shall have the option for a teach-out at another school with a
comparable course of study. The board shall seek to promote teach-out
opportunities whenever possible, with the student to be informed by the board
that he or she has the option of either payment from the account or a
teach-out which shall be funded from the account.
(8) No liability accrues to the state of Idaho from claims made against
the student tuition recovery account.

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