Relating to: student financial protection at certain private postsecondary schools. (FE)

SB 631 requires private colleges seeking state approval to maintain a reserve fund equal to 25% of their highest annual revenue from the past five years (or projected first-year revenue for new schools). This fund would compensate students who suffer financial loss due to school fraud, failure to fulfill contracts, or closure. The bill also establishes a $3 per $1,000 fee on schools' annual revenue to build this protection fund, which stops collecting once the fund reaches $5 million. It directly affects private postsecondary schools needing state approval to operate in the state.