{"data":{"id":"us-nc/n.c.-gen.-stat.-115d-95.1","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 115D-95.1","heading":"Student Protection Fund.","body":"(a)\tDefinitions. - As used in this section:\n(1)\t\"Catastrophic loss amount\" means the amount of funds required to protect prepaid student tuition in case of a large-scale event that would draw against the Student Protection Fund. The amount is one million five hundred thousand dollars ($1,500,000).\n(2)\t\"Fund cap amount\" means the catastrophic loss amount plus a reserve amount. The amount is two million dollars ($2,000,000).\n(b)\tStudent Protection Fund. - The Student Protection Fund is established in the Department of State Treasurer as a statewide fee-supported fund. Interest accruing to the Fund is credited to the Fund. The State Board of Proprietary Schools administers the Fund. The purpose of the Fund is to compensate students enrolled in a proprietary school licensed under this Article who have suffered a loss of tuition, fees, or any other instructional-related expenses paid to the school by reason of the failure of the school to offer or complete student instruction, academic services, or other goods and services related to course enrollment if the school ceases to operate for any reason, including the suspension, revocation, or nonrenewal of a school's license, bankruptcy, or foreclosure.\n(c)\tStudent Protection Fund Advisory Committee. - The State Board of Proprietary Schools shall serve as the Student Protection Advisory Committee. The Committee shall advise the State Board of Community Colleges on matters related to the Fund, including, but not limited to, the adjustment of the catastrophic loss amount and Fund cap amount.\n(d)\tInitial Payment. - Prior to its first year of operation in the State, each proprietary school shall pay an initial amount of one thousand two hundred fifty dollars ($1,250) into the Fund.\n(e)\tAnnual Revenue Payment. -\nEach proprietary school operating in the State shall pay annually into the Fund an amount based on its annual gross tuition revenue generated in the State as follows:\nAnnual Gross Tuition Revenue\tAmount of Assessment\n$1.00 - $25,000\t$200.00\n$25,001 - $50,000\t$250.00\n$50,001 - $100,000\t$300.00\n$100,001 - $200,000\t$400.00\n$200,001 - $300,000\t$500.00\n$300,001 - $400,000\t$600.00\n$400,001 - $500,000\t$700.00\n$500,001 - $750,000\t$1,000\n$750,001 - $1,000,000\t$1,250\n$1,000,001 - $1,500,000\t$1,500\n$1,500,001 - $2,000,000\t$2,000\nGreater than $2,000,000\t$2,000 plus one-twentieth of one percent (.05%) of annual gross tuition revenue over $2,000,000.\n(f)\tSuspension of Payments. - The State Board of Proprietary Schools shall suspend payments into the Fund, as follows:\n(1)\tFor schools that are currently licensed in this State, if the Student Protection Fund balance is equal to or exceeds the catastrophic loss amount.\n(2)\tFor schools applying for initial licensure with the State, if the Student Protection Fund balance is equal to or exceeds the fund cap amount.\n(3)\tIf the Student Protection Fund balance decreases below the catastrophic loss amount, the State Board shall reinstate the requirement for schools to make payments into the Fund.\n(g)\tCatastrophic Assessments. - If claims against the Student Protection Fund exceed the catastrophic loss amount, the State Board of Proprietary Schools may assess additional fees to the extent necessary to compensate students qualified for repayment under the Fund. The amount of the catastrophic assessment shall not exceed one-half of the amount of the annual revenue payment required by subsection (e) of this section. If the amount of the catastrophic assessment will be insufficient to cover qualified claims, the State Board shall develop a method of allocating funds among claims.\n(h)\tPayment Required for Proprietary School Licensure. - The full and timely payment into the Fund pursuant to this section is a condition of licensure.\n(i)\tPayments Nonrefundable. - No payment to the Student Protection Fund shall be refunded in the event that a school's license application is rejected or a school's license is suspended or revoked.\n(j)\tStudent Repayment. - A student, or the student's parent or guardian, who has suffered a loss of tuition, fees, or any other instructional-related expenses paid to a proprietary school licensed under this Article by reason of the school ceasing to operate for any reason, including the suspension, revocation, or nonrenewal of a school's license, bankruptcy, or foreclosure, may qualify for repayments under the Student Protection Fund. The State Board of Community Colleges first must issue repayment from the bonds issued under G.S. 115D-95. If the Student Protection Fund is insufficient to cover the qualified claims, the State Board must develop a method of allocating funds among claims.\n(k)\tRules. - The State Board of Proprietary Schools shall adopt rules for the implementation of this section. (2009-562, s. 4; 2011-308, s. 9; 2024-57, s. 3J.18(d).)","path":["Chapter 115D. Community Colleges.","Article 8. Proprietary Schools."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_115D/GS_115D-95.1.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:17:47Z","sha256":"6ea75eb38c013c1493dd6d92bde05e955d1ec02290ee58cd463b5b8ef96258d1","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-115d-95","next":"us-nc/n.c.-gen.-stat.-115d-96"},"notice":"GroundRules: Original legal text. Not legal advice."}