(1) As a condition for granting a certificate of approval or an agent's permit to represent a school located outside this state, a school shall maintain a policy for the refund of tuition and fees in the event, and within thirty days of the date, a student fails to enter the course, withdraws, or has been discontinued therefrom at any time prior to completion. The policy shall provide for at least the following:

(a) A full refund of all money paid if the applicant is not accepted by the school;

(b) A full refund of tuition and fees paid if the applicant withdraws within three days after signing the contract or making an initial payment if the applicant has not commenced training;

(c) A full refund of tuition and fees paid in the event that the school discontinues a course or program of education during a period of time within which a student could have reasonably completed the same; except that this provision shall not apply in the event that the school ceases operation;

(d) That the school use a method of determining the official termination date of the student that complies with the established criteria of the state board for community colleges and occupational education;

(e) That except for retention of a cancellation charge not to exceed one hundred fifty dollars or twenty-five percent of the contract price, whichever is less, the policy for cancellation, settlement, and refund of tuition and fees provides for at least the following:

(I) For a student terminating his or her training within the first ten percent of his or her program, the student shall be entitled to a refund of ninety percent of the contract price of the program exclusive of books, tools, and supplies;

(II) For a student terminating his or her training after ten percent but within the first twenty-five percent of his or her program, the student shall be entitled to a refund of seventy-five percent of the contract price of the program exclusive of books, tools, and supplies;

(III) For a student terminating his or her training after twenty-five percent but within the first fifty percent of his or her program, the student shall be entitled to a refund of fifty percent of the contract price of the program exclusive of books, tools, and supplies;

(IV) For a student terminating his or her training after fifty percent but within the first seventy-five percent of his or her program, the student shall be entitled to a refund of twenty-five percent of the contract price of the program exclusive of books, tools, and supplies;

(V) A student who has completed seventy-five percent of his or her program and has entered the final twenty-five percent shall not be entitled to any refund and shall be obligated for the full price of the program, which constitutes the maximum obligation.

(2) (a) A school offering education using an individualized instruction method shall:

(I) Establish a time period during which a student should complete the training;

(II) Outline school policies relative to satisfactory progress, including an average rate of assignment completion;

(III) Establish a policy for termination in the event that a student does not maintain the rate of assignment completion.

(b) Under these conditions, a refund of tuition and fees required by this section may be computed based on the time period or on assignments completed in accordance with the policy previously adopted by the school.

(3) The board may require a school to submit to the board a notice of each tuition refund paid or contract cancelled in the manner and to the extent determined by the board.