New Jersey 2026-2027 Regular Session

New Jersey Senate Bill S3361

Introduced
2/5/26  

Caption

Applies provisions of "New Jersey College Student and Parent Consumer Information Act" to proprietary schools and limits eligibility for State student assistance programs to students enrolled in certain proprietary schools.

Impact

One significant change S3361 brings is that proprietary schools authorized to offer licensed degree programs will no longer be eligible for direct State aid. Additionally, students enrolled in these institutions will not qualify for any form of state assistance, including grants and scholarships, unless they meet certain graduation rate standards defined by the Secretary of Higher Education. This regulation aims to better align state funding with institutional performance and accountability, ensuring that state resources support institutions that are effective at graduating their students.

Summary

Senate Bill S3361, introduced in New Jersey, focuses on proprietary schools and their eligibility for state student assistance programs. Specifically, it applies the existing provisions of the 'New Jersey College Student and Parent Consumer Information Act' to proprietary schools, requiring them to disclose essential consumer information regarding their academic programs. This legislation mandates that proprietary schools provide comprehensive information about costs, graduation rates, and faculty on their websites. The objective is to enhance transparency and inform students and families about the financial and educational quality they can expect from these institutions.

Statement

Furthermore, S3361 seeks to bring proprietary schools in line with more established public higher education institutions in terms of transparency. It adds requirements for the schools to disclose loan indebtedness levels among their students and provide detailed reports about their programs. The bill’s provisions aim to help students and their families make well-informed choices regarding higher education, taking into account the financial implications and potential outcomes of entering proprietary schools.

Contention

The introduction of this bill has raised discussions among various stakeholders. Proponents argue that by restricting state aid, the bill incentivizes proprietary schools to improve their graduation rates, ultimately benefiting students through higher quality education. Conversely, opponents express concerns that such measures may limit access to education for students who choose proprietary schools, as those institutions often cater to populations who may need financial assistance. The debate centers around balancing consumer protections against the potential impact on educational access and opportunities.

Companion Bills

NJ S1532

Carry Over Applies provisions of "New Jersey College Student and Parent Consumer Information Act" to proprietary schools and limits eligibility for State student assistance programs to students enrolled in certain proprietary schools.

Similar Bills

CA AB850

Institutional Debt Transparency Act.

NJ A2359

Requires undergraduate students to file degree plan and requires institutions of higher education and certain propriety institutions to develop pathway systems to graduation.

NJ S1480

Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.

NJ S1504

Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

NJ A2133

Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

CA AB2771

California Private Postsecondary Education Act of 2009.

TX HB5180

Relating to the issuance of a diploma to a student graduating from a public institution of higher education that has undergone a merger, acquisition, or name change.

CA AB1098

California Education Interagency Council.