Policy VI: Finance Allocation and Management

Withdrawal and Settlement

The accredited institution must follow the Withdrawal and Settlement Policy to ensure minimum conditions of refund.

The requirements are-

• Policy should be stated in clear language and easily understood
• Applies to all terminations for any reason, by either party, including student decision, course or program cancellation, or school closure
• The refund calculations and process should be performed timely.
• An applicant is entitled to all the refunds except the non-refundable application fee
• The refundable period is forty-five (45) calendar days of official cancellation or withdrawal.
• For a school that is required to take attendance, the required date of the refund is determined by counting from the date the withdrawal was determined. However, for clock hour schools, the refund is calculated based on the student’s last date of attendance.

The term “advertising,” as used in this policy, refers to letterhead, public disclosures, publications, websites, public information releases, advertisements, published notices, public statements, recruitment practices, promotional practices and materials, and disclosures by an institution, its agents or representatives.

For students who enroll in and begin classes, the following schedule of tuition adjustment will be considered to meet minimum standards for refunds:

PERCENTAGE LENGTH COMPLETED TO TOTAL LENGTH OF COURSE AND/OR PROGRAM, SEMESTER, TERM OR BILLING PERIOD, PER CONTRACT	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%

If a school closes permanently and ceases to offer instruction after students have enrolled, and instruction has begun, the school must make arrangements for students. The school has at its option:

a. Provide a pro rata refund; or

b. Participate in a Teach-Out Agreement.

Extra Instructional Charges

An institution may charge a student for extra instruction needed to complete his/her program under the following conditions:

• The absences allowed within the contract period have been exhausted; and

• The amount charged per unit of instruction (i.e., clock hour, week, credit or competency) is clearly stated on the enrollment agreement and tuition and fees information is provided to students upon enrollment.