(a)
Institutions approved or authorized pursuant to Education Code Sections
94310.2,
94310.3,
and
94310.4,
and
94311(d)
shall, in the event of a student or applicant cancels enrollment prior to the
completion of the course, promptly refund to each student the unused portions
of paid tuition fees and other charges or reduce the amount due under the
enrollment contract, as appropriate, in accordance with the following minimum
standards:
(1) Cancellation of Contract or
Enrollment. A student or applicant may cancel the contract or enrollment by
notifying institution personnel of that intention. Such notice is effective
when delivered or when postmarked. An institution may require a written notice
of cancellation provided that such requirement is clearly detailed in the
catalog and enrollment agreement.
(2) Instructional Materials. If there is to
be any charge to a student or applicant for instructional materials under any
circumstances whatever, the school must detail provisions, if any, for the
return or recovery of the materials, and a specific price must be affixed to
the items and clearly cited. Fees for instructional materials shall not be
considered as "tuition fees" as used in this section.
Initial correspondence course materials shall be sent to
the student within 7 working days following receipt of student enrollment, or
the student may rescind the contract and shall be entitled to full refund of
all monies paid.
At any time during the enrollment period, a correspondence
institution shall upon written request send the balance of all course materials
to any student who has paid in full under his contract. If the student has not
paid in full but has paid in excess of the amount owed under paragraph (6)
below, the institution shall upon written request send the student the
materials paid for but not received, which will constitute full settlement of
the institution's obligation to the student. In such event, the school shall
remain obligated for all services to which the student is
entitled.
(3) Registration
Fees. An institution shall be entitled to a minimum registration fee of $25.00
with a maximum of 15 percent of the total tuition fees or $100.00, whichever is
less.
(4) Three-Day Full Refund
Period. Where the provisions of Education Code Section
94312(e)
are not applicable, the student or applicant shall be given no less than 3
working days following the day on which enrollment was signed or effective to
cancel enrollment and receive refund of all monies paid to institution or its
representative, including the refund of registration and instructional
materials fees, provided no classes have been attended, lessons completed, or
materials used.
(5) Cancellation
After Three-Day Period. Where the provisions of Education Code Section
94312(e)
are not applicable, and should the student or applicant cancel enrollment more
than 3 working days following the day on which enrollment was signed or
effective, the institution may retain, as earned, the amount disclosed as a
registration fee plus any disclosed and used instructional material costs not
inconsistent with its stated policy, provided that:
(A) In resident institutions, the
cancellation was made prior to the date upon which the institution is scheduled
to start classes or instruction, or
(B) In correspondence institutions, the
cancellation was made prior to the date on which the institution received the
first completed lesson or prior to the 30th day following the date on which the
student or applicant first received materials, whichever occurs
first.
(6) Minimum
Refund. Should a student cancel enrollment after the time period described in
(a)(5)(A) of this section, whether or not he or she was in attendance, or after
the time period described in (a)(5)(B) of this section, the student is entitled
to a refund of fees and charges, except registration fees and costs of
instructional materials consistent with the institution's stated policy, in
accordance with the following refund formula:
Percent of attendance time or of course
length as related to the total course time or
length: |
Minimum Amount of Refund |
Up to
10%.......................... |
..........................90% |
10% and up to
25%.......................... |
..........................75% |
25% and up to
50%.......................... |
..........................50% |
.50% and
over......................... |
..........................No Refund |
The requirements of this part do not apply to institutions
operating under Education Code Section
94310.
Those institutions shall develop and use a fair, equitable and positive policy
of incremental refund of unused fees and other charges applicable to
cancellations.
(7) Fees
Which Shall be Refunded. Fees which shall be refunded are:
(A) Any fee or charge collected in error
shall be repaid in full.
(B) Any
charges collected from a student which the institution holds for the purpose of
paying to any other public or private person, firm, organization, or agency,
such as for a bond, license application or examination fees, or any similar
fees or charges shall, where the student fails to enter the course or withdraws
therefrom at any time prior to completion of the course, be refunded in full.
Such charges are not subject to any refund if the institution has paid them
prior to receipt of cancellation of a contract or enrollment.
(C) All prepaid but unearned fees and other
charges paid by a student to the institution shall be refunded to the student
if the institution discontinues the class or course for which the student has
enrolled.
(8) Refunds to
Veterans. A student enrolled under any federal or state veterans' education
assistance plan may receive all the refunds of fees in accordance with the law
or regulations under which the federal or state veterans' education assistance
plan is operated, regardless of any limitation set forth in this
section.
(9) Timely Refunds.
Refunds must be made by the institution within 30 days of the
cancellation.