{"data":{"id":"us-ky/krs-165a.450","jurisdiction":"us-ky","citation":"KRS 165A.450","heading":"Licensed schools to contribute to a student protection fund -- Purposes --","body":"Minimum balance -- Fee structure.\nAll licensed schools, resident and nonresident, shall be required to contribute to a student\nprotection fund. The fund shall be used to pay  off debts, including refunds to students\nenrolled or on leave of absence by not being enrolled for one (1) academic year or less\nfrom the school at the time of the closing, incurred due to the closing of a school,\ndiscontinuance of a program, loss of lice nse, or loss of accreditation by a school or\nprogram. The Kentucky Commission on Proprietary Education shall promulgate\nadministrative regulations in accordance with KRS Chapter 13A to:\n(1) Ensure that there is a renewable fund maintained solely to reimbur se eligible\nKentucky students, the balance of which shall not fall below five hundred thousand\ndollars ($500,000);\n(2) (a) Impose an equitable scaled structure of fees assessed upon schools licensed by\nthe commission when the balance of the fund drops belo w the minimum\nbalance specified in subsection (1) of this section. The fee structure shall take\ninto account:\n1. The number of students enrolled in the school;\n2. The tuition and fees charged to students;\n3. A school's prior contribution to the fund;\n4. Adjustments in fees to replace disbursements from the fund; and\n5. Whether the licensed school is located within the state or outside the\nstate.\n(b) The commission shall cease imposing the assessment described in paragraph\n(a) of this subsection when the bal ance of the fund is replenished to the\nrequired minimum balance specified in subsection (1) of this section;\n(3) Ensure that repayment to the fund is made if, after having received payment from\nthe fund, a student receives a financial settlement, including  but not limited to a\nbankruptcy payout, forgiveness of loan debt, payout of bond, or payment from\nanother state from its student protection fund;\n(4) Establish requirements for a licensed school to notify the commission and to remit\ndocumentation of student records prior to its closing, including penalties such as\nfines or restrictions on future licensing assessed to owners that do not meet these\nrequirements;\n(5) Require licensed institutions to make all students aware of the student protection\nfund and establish the process for filing claims;\n(6) Impose a time frame after a school closes during which a student may file a claim\nagainst the fund; and\n(7) Establish an appeals process for students who disagree with a commission decision.","path":["KRS Chapter 165A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40324","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:20Z","sha256":"c650309619c5fa93dff69b6dd1bf058d8a1579bf00d1483e7f3c6e5295377803","source_id":"us-ky","stale":false,"prev":"us-ky/krs-165a.410","next":"us-ky/krs-165a.460"},"notice":"GroundRules: Original legal text. Not legal advice."}