**§21.4255 Refund policy; nonaccredited courses.**

\(a\) *Acceptable refund policy.* A refund policy meets the requirements
of §21.4254(c)(13), if it provides that the amount charged for tuition,
fees, and other charges for a portion of the course does not exceed the
approximate pro rata portion of the total charges for tuition, fees, and
other charges that the length of the completed portion of the course
bears to the total length. The school may make provision for refund
within the following limitations:

\(1\) *Registration fee.* An established registration fee in an amount
not to exceed \$10 need not be subject to proration. Where the
established registration fee is more than \$10, the amount in excess of
\$10 will be subject to proration.

\(2\) *Breakage fee.* Where the school has a breakage fee, it may
provide for the retention of only the exact amount of the breakage, with
the remaining part, if any, to be refunded.

\(3\) *Consumable instructional supplies.* Where the school makes a
separate charge for consumable instructional supplies, as distinguished
from laboratory fees, the exact amount of the charges for supplies
consumed may be retained but any remaining part must be refunded.

\(4\) *Books, supplies and equipment.*

\(i\) A veteran or eligible person may retain or dispose of books,
supplies and equipment at his or her discretion when:

\(A\) He or she purchased them from a bookstore or other source, and

\(B\) Their cost is separate and independent from the charge made by the
school for tuition and fees.

\(ii\) The school will make a refund in full for the amount of the
charge for unissued books, supplies and equipment when:

\(A\) The school furnishes the books, supplies and equipment.

\(B\) The school includes their cost in the total charge payable to the
school for the course.

\(C\) The veteran or eligible person withdraws or is discontinued before
completing the course.

\(iii\) The veteran or eligible person may dispose of issued items at
his or her discretion even if they were included in the total charges
payable to the school for the course.

\(5\) *Tuition and other charges.* Where the school either has or adopts
an established policy for the refund of the unused portion of tuition,
fees, and other charges subject to proration, which is more favorable to
the veteran or eligible person than the approximate pro rata basis as
provided in this paragraph, such established policy will be applicable.
Otherwise, the school may charge a sum which does not vary more than 10
percent from the exact pro rata portion of such tuition, fees, and other
charges that the length of the completed portion of the course bears to
its total length. The exact proration will be determined on the ratio of
the number of days of instruction completed by the student to the total
number of instructional days in the course.

\(6\) *Prompt refund.* In the event that the veteran, spouse, surviving
spouse or child fails to enter the course or withdraws or is
discontinued therefrom at any time prior to completion of the course,
the unused portion of the tuition, fees and other charges paid by the
individual shall be refunded promptly. Any institution which fails to
forward any refund due within 40 days after such a change in status,
shall be deemed, prima facie, to have failed to make a prompt refund, as
required by this paragraph.

\(b\) *Waiver.*

\(1\) An educational institution may apply through the appropriate State
approving agency to the Director of the VA facility of jurisdiction for
a waiver of the requirements of paragraph (a) of this section as they
apply to a veteran or eligible person. The State approving agency shall
forward the application to the Director along with its recommendations.
The Director shall consider the recommendations and shall grant a waiver
only when he or she finds that the educational institution:

\(i\) Is a college, university, or similar institution offering
post-secondary level academic instruction leading to an associate or
higher degree;

\(ii\) Is operated by an agency of a State or a unit of local
government;

\(iii\) If operated by an agency of a State, is located within that
State;

\(iv\) If operated by a unit of local government, is located within the
boundaries of the area over which that unit has taxing jurisdiction;

\(v\) Is a candidate for accreditation by a regional accrediting agency;
and

\(vi\) Charges the veteran or eligible person no more than \$120 per
quarter, \$180 per semester or \$360 per school year in tuition, fees
and other charges for the course.

\(2\) If an educational institution disagrees with a decision of a
Director of a VA facility, it may ask that the Director, Vocational
Rehabilitation and Education Service review the decision. In reviewing
the decision the Director must consider the evidence of record. He or
she may not grant a waiver unless all the criteria of paragraph (b)(1)
of this section are met. (Authority: 38 U.S.C. 3676(d))

\[47 FR 42733, Sept. 29, 1982\]