Guaranty Recovery Cash Fund

The Guaranty Recovery Cash Fund provides greater financial protection for Nebraska students who attend a for-profit institution that closes unexpectedly without completing or providing courses for which students have paid. A provision of Legislative Bill 512, passed by the Legislature and signed into law by the governor in 2017, established the Guaranty Recovery Cash Fund. The Guaranty Recovery Cash Fund requires that for-profit colleges and universities with a physical presence in Nebraska that are regulated by the Coordinating Commission for Postsecondary Education under the Postsecondary Institution Act contribute to a fund used primarily to reimburse students attending these schools if they go out of business suddenly. Nebraska for-profit institutions will contribute one-tenth of 1 percent of their annual tuition revenue to the fund until it reaches $250,000. Currently there is one school in Nebraska that falls under this for-profit category: The Creative Center in Omaha. The Fund does not apply to students attending institutions regulated by the Nebraska Department of Education under the Private Postsecondary Career School Act.