California Code of Regulations › Title 5 - Education › Division 1 - California Department of Education › Chapter 21 - Private Postsecondary Education Instructions › Subchapter 1 - General Provisions › Section 18805 - Refund Policy

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(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.