New Consumer Protection Law Will Ensure Tuition at
Career-Oriented Higher Educational Programs Can be Affordably Repaid with the
Expected Wages in the Occupations Students Trained For
TRENTON – Governor Phil Murphy today signed legislation (A-1695)
to help protect students from unreasonably high tuition rates that would be
difficult to repay based on the wages they are likely to earn after completing
a career-oriented educational or training program. The bill will require the
Office of the Secretary of Higher Education (OSHE) and Department of Labor
(DOL) to establish performance quality standards for career-oriented programs
of study offered by postsecondary institutions.
“Higher education programs that are designed to prepare
students for a specific occupation should offer both high-quality training and
affordable costs based on the wages that program graduates are likely to earn,”
said
Governor Murphy. “By establishing
performance quality standards for career-oriented education and training
programs, we will guard students against unreasonable student loan debt that
they simply cannot repay with the typical wages in the career for which they
studied. This is an important step I am proud to take as my Administration
continues our work of making higher education more affordable for everyone in
our state.”
“This legislation, by raising academic program quality
standards and strengthening consumer protections, is a significant step towards
advancing New Jersey’s higher education goals and the State’s vision for
increased student attainment,” said Dr. Brian K. Bridges, Secretary of Higher Education. “By establishing this framework to assess the outcomes for
students in career-oriented programs, New Jersey will serve as a model for
other states and send a clear signal to stakeholders that the Garden State is
taking direct action to improve student outcomes by holding institutions
accountable for the education they deliver.”
“We’re proud to have these gainful employment standards
in New Jersey,” said Labor Commissioner Robert Asaro-Angelo. “Now we’re better able to protect the thousands of people
seeking training to advance their careers and, at the same time, the hundreds
of training providers that play by the rules and prepare their students for
work without taking advantage of them. No one should have to borrow so much for
career training that they can’t afford to pay it back once they are working at
the job they prepared for.”
“This important legislation will protect students from
incurring unsustainable debt in education and training programs designed for
specific occupations,” said David J. Socolow, Executive Director of the Higher Education
Student Assistance Authority (HESAA). “In
addition, it will safeguard New Jersey’s student assistance grants by
eliminating funding for courses of study with tuition rates that are out of
line with the wages that students would reasonably expect to earn after
completing the program.”
“Higher education has long been a ladder to prosperity
and success, and for many New Jersey students, paying for that education is one
of the biggest financial investments they will make,” said Acting
Attorney General Matthew J. Platkin.
“The legislation signed into law today by Governor Murphy will help ensure
students get a fair return on that investment by requiring institutions of
higher education to deliver quality programs that will advance students'
opportunities."
“The success of New Jersey students as they journey
though preschool to grade 12 and advance to higher education directly
correlates to a competent future for the State,” said Dr.
Allen-McMillan, Acting Commissioner of Education. “This bill ensures transparency in the performance quality
standards for career-oriented programs of study offered by institutions of
higher education, degree-granting proprietary institutions, and private career
schools so that students remain informed as they make important decisions to
benefit their future career path.”
In recognition of the difficulties graduates will face
in paying back student loans if their tuition rate is not commensurate with the
wages they will likely receive upon graduating, the law will set standards
based on the ratio of the program’s tuition compared to the typical earnings of
the specific, identifiable occupation for which the program is designed to
prepare students. OSHE and DOL will enforce these performance quality standards
as appropriate for any career-oriented postsecondary education or training
program at an institution licensed or approved by the State.
The standards will apply to both credit and non-credit
based career-oriented programs at all postsecondary institutions, including
two- and four-year public colleges, private non-profit independent
institutions, and proprietary institutions.
Primary sponsors of the bill include Senators Joseph
Cryan and Sandra Cunningham, as well as Assemblywomen Mila Jasey, Annette
Quijano, and Britnee N. Timberlake.
“The cost of a college degree and job training schools
is a significant expense meant to be an investment in their future career
opportunities,” said Senator Cryan. “But
these costs can leave them burdened with debt that can be disproportionate to
their income potential. They deserve to know what they are paying for and what
they can afford.”
“Too many students already struggle to pay off their
student loan debt and that stands in the way of their financial security well
into their adult lives,” said Assemblywoman Jasey.
“Institutions must take into consideration the cost of a program as compared
with a student’s anticipated earnings in their chosen career or profession.
Through the new law, reasonable performance quality standards will be set,
preventing career-oriented courses of study from overcharging students for
programs and incurring debt for which they will not earn sufficient salaries to
repay.”
“We commend Governor Murphy, the bill sponsors, and our
State legislators for their commitment to addressing a root cause behind the student
debt crisis that has saddled New Jerseyans with almost $50 billion in
outstanding loans,” said New Jersey Citizen Action Financial Justice Director Beverly
Brown Ruggia. “This legislation sets a
national precedent for creating transparency and ethical standards for training
schools and career schools operating in New Jersey. It will ensure these
programs are of good quality and priced according to the potential earnings of
their graduates.”
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