HF2054 Summary

• Prohibits schools from requiring mandatory predispute arbitration clauses with students for both degree-granting institutions and private career schools.

• Prohibits schools from withholding official transcripts from students in arrears or default on institutional loans that qualify under federal bankruptcy law.

• Expands grounds for denying, revoking, or suspending school registration to include fraudulent, coercive, or dishonest business practices and prior administrative or judicial determinations of fraud involving government funds.

• Restructures religious school exemption provisions to clarify program-level exemptions and requires exemptions to be renewed every two years or when schools add new programs or modify existing programs by 25 percent or more.

• Adds explicit prohibition on mandatory predispute arbitration clauses as a licensing requirement for private career schools.