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.
(Amended by Stats. 2011, Ch. 167, Sec. 2. (AB 1013) Effective January 1, 2012. Repealed as of January 1, 2021, pursuant to Section 94950.)
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