Cancellations, Withdrawals, And Refunds - Private Postsecondary Institutions - CA Education

Section § 94919

This section outlines rules for educational institutions participating in federal student aid programs. First, they must comply with federal regulations under the Higher Education Act. Second, students need to be informed that they can cancel enrollment or withdraw by written notice or by not attending classes. Third, schools must offer a partial refund of nonfederal aid if a student completes 60% or less of their attendance period. Lastly, a full refund (minus a modest fee) is required if a student cancels enrollment within a certain timeframe: either by the first class or within seven days of enrolling, whichever is later.

(a) An institution that participates in the federal student financial aid programs complies with this article by complying with applicable regulations of the federal student financial aid programs under Title IV of the federal Higher Education Act of 1965.

(b) The institution shall advise each student that a notice of cancellation shall be in writing, and that a withdrawal may be effectuated by the student’s written notice or by the student’s conduct, including, but not necessarily limited to, a student’s lack of attendance.

(c) The institution shall also provide a pro rata refund of nonfederal student financial aid program moneys paid for institutional charges to students who have completed 60 percent or less of the period of attendance.

(d) Institutions shall refund 100 percent of the amount paid for institutional charges, less a reasonable deposit or application fee not to exceed two hundred fifty dollars ($250), if notice of cancellation is made through attendance at the first class session, or the seventh day after enrollment, whichever is later.

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(Added by Stats. 2009, Ch. 310, Sec. 6. (AB 48) Effective January 1, 2010. Repealed as of January 1, 2027, pursuant to Section 94950.)

Section § 94920

If a school in California doesn't use federal student financial aid, they must follow specific refund rules. They must tell students that they can cancel in writing or through their lack of attendance. If a student cancels by the first class or within seven days of enrolling, they get back all fees except a possible $250 max application fee. The school has to refund money within 45 days. If a student leaves during the first part of their school period, they get a pro rata refund based on how much school time they completed. Different refund calculations may be set for distance learning.

An institution that does not participate in the federal student financial aid programs shall do all of the following:

(a) The institution shall advise each student that a notice of cancellation shall be in writing, and that a withdrawal may be effectuated by the student’s written notice or by the student’s conduct, including, but not necessarily limited to, a student’s lack of attendance.

(b) Institutions shall refund 100 percent of the amount paid for institutional charges, less a reasonable deposit or application fee not to exceed two hundred fifty dollars ($250), if notice of cancellation is made through attendance at the first class session, or the seventh day after enrollment, whichever is later.

(c) The bureau may adopt by regulation a different method of calculation for instruction delivered by other means, including, but not necessarily limited to, distance education.

(d) The institution shall have a refund policy for the return of unearned institutional charges if the student cancels an enrollment agreement or withdraws during a period of attendance. The refund policy for students who have completed 60 percent or less of the period of attendance shall be a pro rata refund.

(e) The institution shall pay or credit refunds within 45 days of a student’s cancellation or withdrawal.

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(Amended by Stats. 2011, Ch. 167, Sec. 2. (AB 1013) Effective January 1, 2012. Repealed as of January 1, 2027, pursuant to Section 94950.)

Section § 94921

If a school has a uniquely structured educational program and can't use the standard method for calculating student tuition refunds, it can ask the appropriate bureau for permission to use a different method.

An institution offering an educational program for which the refund calculations set forth in this article cannot be utilized because of the unique way in which the educational program is structured, may petition the bureau for an alternative method of calculating tuition refunds.

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(Added by Stats. 2009, Ch. 310, Sec. 6. (AB 48) Effective January 1, 2010. Repealed as of January 1, 2027, pursuant to Section 94950.)

Section § 94922

In simple terms, this law states that students are not allowed to give up or ignore any part of this specific set of rules.

A student may not waive any provision of this article.

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(Added by Stats. 2009, Ch. 310, Sec. 6. (AB 48) Effective January 1, 2010. Repealed as of January 1, 2027, pursuant to Section 94950.)