SEC. 75-60-18. Tuition refund policy.
Any school registered pursuant to this chapter shall be subject to and comply with the pro rata student tuition refund policy provided in this section. For the purposes of this section, the terms "term", "quarter" and "semester" shall be defined in regulations by the commission. The tuition refund policy for the first term or quarter of any program at schools registered pursuant to this chapter shall be as follows:
(a) For programs which are divided into quarters of up to fourteen (14) weeks, the school shall evenly divide the total tuition charges among the number of quarters. After instruction is begun in a school, if a student withdraws or is discontinued, the school may retain no more than:
(i) Zero percent (0%) of the quarter's tuition if the termination is during the first week of instruction; or
(ii) Twenty-five percent (25%) of the quarter's tuition if the termination is during the second week of instruction; or
(iii) Fifty percent (50%) of the quarter's tuition if the termination is during the third week of instruction; or
(iv) Seventy-five percent (75%) of the quarter's tuition if the termination is during the fourth week of instruction; or
(v) One hundred percent (100%) of the quarter's tuition if the termination occurs after the fourth week of instruction.
(b) For programs organized by terms of fifteen (15), sixteen (16), seventeen (17) or eighteen (18) weeks each, the school shall evenly divide the total tuition charges among the number of terms. After instruction is begun in a school, if a student withdraws or is discontinued, the school may retain no more than:
(i) Zero percent (0%) of the term's tuition if the termination is during the first week of instruction; or
(ii) Twenty percent (20%) of the term's tuition if the termination is during the second week of instruction; or
(iii) Thirty-five percent (35%) of the term's tuition if the termination is during the third week of instruction; or
(iv) Fifty percent (50%) of the term's tuition if the termination is during the fourth week of instruction; or
(v) Seventy percent (70%) of the term's tuition if the termination is during the fifth week of instruction; or
(vi) One hundred percent (100%) of the term's tuition if the termination occurs after the completion of the fifth week of instruction.
(c) The tuition refund policy for the second term or quarter of any program at schools registered pursuant to this chapter shall be as follows:
For programs which are divided into quarters of up to fourteen (14) weeks, the school shall evenly divide the total tuition charges among the number of quarters. After instruction is begun in a school, if a student withdraws, or is discontinued, the school may retain no more than:
(i) Twenty-five percent (25%) of the quarter's tuition if the termination is during the first week of instruction; or
(ii) Fifty percent (50%) of the quarter's tuition if the termination is during the second week of instruction; or
(iii) Seventy-five percent (75%) of the quarter's tuition if the termination is during the third week of instruction; or
(iv) One hundred percent (100%) of the quarter's tuition if the termination occurs after the third week of instruction.
For programs organized by terms of fifteen (15), sixteen (16), seventeen (17) or eighteen (18) weeks each, the school shall evenly divide the total tuition charges among the number of terms. After instruction is begun in a school, if a student withdraws or is discontinued, the school may retain no more than:
(i) Twenty percent (20%) of the term's tuition if the termination is during the first week of instruction; or
(ii) Thirty-five percent (35%) of the term's tuition if the termination is during the second week of instruction; or
(iii) Fifty percent (50%) of the term's tuition if the termination is during the third week of instruction; or
(iv) Seventy percent (70%) of the term's tuition if the termination is during the fourth week of instruction; or
(v) One hundred percent (100%) of the term's tuition if the termination occurs after the completion of the fourth week of instruction.
(d) The tuition refund policy for the third and any subsequent term or quarter of any program registered pursuant to this chapter shall be the policy set forth in paragraph (c) of this subsection.
(e) No program shall have a term in excess of eighteen (18) weeks.
(f) The amount of the refund shall be calculated based on the last day of student attendance.
(g) Any refund due to a student shall be paid by the school within forty-five (45) days of the date on which the student withdraws from the program. For the purposes of this chapter, such date shall be the earliest of (i) the date on which the student gives written notice to the school or (ii) the date on which the student is deemed to have withdrawn, as herein provided. If a student has failed to attend classes for a period of thirty (30) calendar days, the school shall send by regular mail a notice to the student, and a copy to a person designated by the commission, that the student shall be deemed to have withdrawn from the program if the student does not notify the school to the contrary within twelve (12) days from the date on which the letter is sent. If the student fails to respond within such twelve-day period, the student shall be deemed to have withdrawn.
(h) Upon payment of a refund to a lender, the school shall forthwith send a notice to a person designated by the commission upon a form approved by the commission that such refund was made.
(i) If the commission fails to receive the notice required by paragraph (h) of this subsection, it shall forthwith notify the student of his right to a refund. Upon receipt of such notification, the commission shall take appropriate action against the school.
SOURCES: Laws, 1992, ch. 349, Sec. 11; 1993, ch. 446, Sec. 6, eff from and after July 1, 1993.