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.
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
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
(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
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
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
course length as related to the
Minimum Amount of
total course time or length:
Up to 10%.
10% and up to 25%.
25% and up to 50%.
50% and over.
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.
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.
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.