Section R4-39-404. Tuition Refund Policy

A.      A licensee shall allow a student or prospective student to can- cel an enrollment agreement with the licensee if the student or prospective student submits a written notice of cancellation to the licensee within three days, excluding Saturday, Sunday,

and state and federal holidays, of signing the enrollment agree- ment.

B.       No later than 30 calendar days after a licensee receives a writ- ten notice of cancellation described in subsection (A), the lic- ensee shall provide to the student or to the person who paid the student’s tuition and fees a refund of 100 percent of all student fees and tuition paid for the student.

C.      A person operating a licensed private accredited institution shall develop and implement policies and procedures for can- cellations and tuition refunds that:

1.        Are published in the institution catalog or enrollment agreement;

2.        Are applicable to all students; and

3.        Comply with:

a.         Accreditation standards established by each accred- iting agency named under R4-39-103(D)(3) or (F)(1)(a); and

b.        United States Department of Education require- ments governing each federal student financial aid program named under R4-39-103(D)(6) or (F)(1)(b).

D.      A person operating a licensed private non-accredited institu- tion shall develop and implement policies and procedures for cancellations and tuition refunds that:

1.        Are published in the institution catalog or enrollment agreement;

2.        Are applicable to all students;

3.        Establish time periods for each program that:

a.         Have a prescribed student tuition obligation and tuition refund calculation; and

b.        Do not exceed the full length of the program or one calendar year, whichever is less;

4.        Allow an institution to retain an administrative fee or reg- istration fee not to exceed $200.00 if the fee is published in the institution catalog or contained in the enrollment agreement;

5.        Provide for the following refunds for a student who with- draws from or is terminated by an institution:

a.         Before beginning classes in a time period, a refund of 100 percent of the tuition charges for the time period;

b.        If 10 percent or less of the time period has expired, a refund of at least 90 percent of the tuition charges for the time period;

c.         If more than 10 percent but less than or equal to 20 percent of the time period has expired, a refund of at least 80 percent of the tuition charges for the time period;

d.        If more than 20 percent but less than or equal to 30 percent of the time period has expired, a refund of at least 70 percent of the tuition charges for the time period;

e.         If more than 30 percent but less than or equal to 40 percent of the time period has expired, a refund of at least 60 percent of the tuition charges for the time period;

f.         If more than 40 percent but less than or equal to 50 percent of the time period has expired, a refund of at least 50 percent of the tuition charges for the time period; and

g.        If more than 50 percent of the time period has expired, no refund or a refund in an amount deter- mined by the institution.

E.       When calculating refunds under subsection (D)(5), an institu- tion shall:

1.        Use the last date of attendance as the date of withdrawal or termination;

2.        Determine that a student has withdrawn from an institu- tion if the student has not attended any class for 30 con- secutive scheduled class days; and

3.        Base the percentage of the time period expired on the time elapsed in the time period or on the number of semester, quarter, trimester, or clock hours completed in the time period.

F.       A program is exempt from subsection (D)(5) if the program:

1.        Is less than 100 clock hours,

2.        Has a total cost of less than $1000, and

3.        Is provided by a private non-accredited vocational institu- tion or a private non-accredited degree-granting institu- tion.

Historical Note

New Section made by final rulemaking at 11 A.A.R.

2262, effective August 6, 2005 (Supp. 05-2).