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 for credit or clock 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 program or course in which the student is enrolled.
(5) Program or course length 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 thirty days of either cancellation 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 and fifty dollars.
(b) The percentage of clock hours that have elapsed is calculated by dividing the enrollment time by the course or program length, then by multiplying the result by one hundred. The percentage of credit hours that have elapsed is calculated by dividing the scheduled days attended by the total scheduled days in the quarter or semester, then multiplying by one hundred.
(c) If the percentage of clock hours or credit hours that have elapsed is less than five per cent, the tuition due is calculated by multiplying the total tuition due by twenty per cent.
(d) If the percentage of clock hours or credit hours that have elapsed is at least five per cent, but less than ten per cent, the tuition due is calculated by multiplying the total tuition by thirty per cent.
(e) If the percentage of clock hours or credit hours that have elapsed is at least ten per cent, but less than fifteen per cent, the tuition due is calculated by multiplying the total tuition by forty per cent.
(f) If the percentage of clock hours or credit hours that have elapsed is at least fifteen per cent, but less than twenty five per cent, the tuition due is calculated by multiplying the total tuition by forty five per cent.
(g) If the percentage of clock hours or credit hours that have elapsed is at least twenty five per cent but less than fifty per cent the tuition due is calculated by multiplying the total tuition due by seventy per cent.
(h) If the percentage of clock hours or credit hours that have elapsed is fifty per cent or greater, the total tuition is due in full.
(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 contract 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 contract.
(11) Any termination/withdrawal fee shall be identified in the catalog and on the contract and may not exceed one hundred and 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 course 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 course(s) of study or a substantially similar course 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 4713-3-09 of the Administrative Code.
R.C. 119.032 review dates: 05/07/2004 and 05/01/2009
Promulgated Under: 119.03
Statutory Authority: 4713.08(A)(13)
Prior Effective Dates: 5/1/03