NJ A2091

Nonpublic postsecondary institutions and private career schools would be prohibited from contacting prospective students more than twice in seven days, enrolling students who cannot meet industry employment requirements, and making false statements about earnings, placement rates, accreditation, or program costs.

Schools must disclose cost of attendance, average completion time, three-year completion rates, employment outcomes, and licensure requirements to prospective students at least 72 hours before enrollment and annually to enrolled students.

Commission-based compensation for recruiters, admissions staff, and those selling educational materials would be banned, with violations treated as consumer fraud carrying penalties up to $10,000 for first offenses and $20,000 for subsequent violations.

Schools must disclose any financial relationships with recommended lending institutions and cannot discourage students from using lenders not on the school's preferred list.

The Attorney General would adopt implementing regulations in consultation with the Secretary of Higher Education and Commissioner of Labor and Workforce Development, with the law taking effect 12 months after enactment.