NJ S3731

Creates a Student Tuition Recovery Fund within the Office of the Secretary of Higher Education to reimburse students who suffer economic losses when proprietary degree-granting institutions close or fail

Requires proprietary institutions to pay an initial $2,500 deposit plus ongoing fees of at least $1 per $1,000 of tuition and fees charged each semester to fund the program

Allows students to file claims within six years of separation from the institution for various harms, including school closure, program discontinuation, failure to refund loan proceeds, or unfair/deceptive practices

Authorizes the Attorney General to seek injunctions against non-compliant institutions and initiate claims on behalf of affected students from the fund

Empowers the Secretary to pursue cancellation of federal student loans on behalf of claimants and pay claims directly to lenders to satisfy student loan obligations