4713-3-11 Cancellation, settlement and refund.

The institution shall state its policy and schedule of refund in clear language that can be easily understood. The policy shall apply to all terminations for any reason, by either party including student decision, course cancellation and school closure. Accredited schools shall adhere to the refund policy of their accrediting institution. All other schools shall adhere to the following refund requirements.

(A) The intent of the board refund policy is to see that each applicant/student is assured minimum conditions of refund. When calculating refunds, the school shall use the policy mandated by this rule unless a federal or accrediting agency policy applies. No institution is restricted to the minimum specific conditions stated here; only that its policy is at least as liberal to the student as this one

(1) An applicant or student (or the parent/guardian if the applicant or student is a minor) may cancel enrollment at anytime by informing the school in writing.

(2) The ending date for refund computation purposes is the last date of physical attendance by the student.

(3) Enrollment time means the total scheduled days forclock hours that have elapsed between the first day of class and the ending date.

(4) Total tuition is the amount stated on the contract or enrollment attributed to the programin which the student is enrolled.

(5) Programlength is a period in clock hours for a clock hour program or calendar time for a credit hour program as specified in the contract or enrollment agreement.

(6) All refunds due shall be issued within forty-five days of official cancellation or withdrawal by the student or termination by the school.

(a) In addition to other charges and fees, the student may be charged a withdrawal fee of no more than one hundred fifty dollars.

(b) The percentage of clock hours that have elapsed is calculated by dividing the enrollment time by theprogram length, then by multiplying the result by one hundred.

Percentage length completed to total length of program, semester, term or billing period, per enrollment agreement.

Amount of total tuition owed to the school.

0.01 % to 4.9 %

20%

5% to 9.9 %

30%

10% to 14.9 %

40%

15% to 24.9 %

45%

25% to 49.9 %

70%

50% and over

100%

(7) The cancellation date shall be the postmarked date if mailed, or the delivery date, if delivered in person. The termination date shall be the date of formal termination by the school, the thirtieth day of consecutive unexcused absence, or the scheduled return date for a student who does not return from an official leave of absence.

(8) If the school ceases to offer instruction after the student begins training, the student shall be entitled to a pro-rata refund of tuition based upon enrollment time. If the course is canceled before beginning training, the student shall be entitled, at the option of the school, to either a full refund of all money paid to the school, or completion of the course at another location.

(9) All extra costs, such as books, equipment, graduation fees, etc., which are not included in the tuition price, shall be stated in the catalog and enrollment agreement and any non-refundable items will be identified.

(10) An institution may charge a non-refundable application fee. This charge shall be clearly stated in both the school's catalog and enrollment agreement.

(11) Any termination/withdrawal fee shall be identified in the catalog and on the enrollment agreement and may not exceed one hundred fifty dollars.

(B) The enrollment agreement shall clearly outline the obligations of both the institution and the student, and provide details of the cancellation and settlement policy of the institution. A copy of the enrollment agreement and other data covering student costs shall be furnished to the applicant before any payment is made. No enrollment agreement is binding until it has been accepted in writing by an appropriate official at the institution. The institution's cancellation and settlement policy shall also be printed in the school catalog see rule 4713-3-12 of the Administrative Code.

(C) The collection procedures shall reflect good taste and sound, ethical business practices. The name of the board shall not be used in the institution's refund policy nor in any of its collection efforts.

(D) If a school closes permanently and ceases to offer instruction after students have enrolled, or if a program is canceled after students have enrolled and instruction has begun, the school shall make arrangements for students or implement any applicable teach-out agreement in compliance with the following requirements.

(1) The arrangements or agreement shall offer the student a reasonable opportunity to promptly resume and complete the canceled program(s) of study or a substantially similar program of study at an institution (or institutions) which offer similar educational programs.

(2) The arrangements or teach-out agreement should be performed by an institution in the same geographic area as the closing school.

(3) The original school shall notify affected students individually of the availability and total cost of the arrangement or teach-out agreement, and diligently advertise such availability. The agreements among institutions may provide that these notices may be sent by the school(s) that are accepting students from the original school.

(4) The school that is closing or has closed shall submit to the board a list of all students who were enrolled at the time of closure, and indicate on it the arrangements made for each student to complete his or her education.

(5) Students shall receive a pro-rata refund of tuition.

(6) The original school shall dispose of school records per rule 4713-3-06 of the Administrative Code.

Replaces: 4713-03-11

Effective: 02/28/2014
R.C. 119.032 review dates: 02/28/2019
Promulgated Under: 119.03
Statutory Authority: 4713.08
Rule Amplifies: 4713.44 , 4713.45
Prior Effective Dates: 5/1/03