§ 3B-13

(Section scheduled to be repealed on January 1, 2031) Sec. 3B-13. Rules; refunds. Schools regulated under this Section shall issue refunds based on the following schedule. The refund policy shall provide that: (1) Schools shall, when a student gives written notice of cancellation, provide a refund in the amount of at least the following: (a) When notice of cancellation is given within 5 days after the enrollment date, all application and registration fees, tuition, and any other charges shall be refunded to the student. (b) When notice of cancellation is given after the fifth day following the enrollment date but before the completion of the student's first day of class attendance, the school may retain no more than the application and registration fee, plus the cost of any books or materials which have been provided by the school and retained by the student. (c) When notice of cancellation is given after the student's completion of the first day of class attendance but prior to the student's completion of 5% of the course of instruction, the school may retain the application and registration fee and an amount not to exceed 10% of the tuition and other instructional charges or $300, whichever is less, plus the cost of any books or materials which have been provided by the school. (d) When a student has completed 5% or more of the course of instruction, the school may retain the application and registration fee and the cost of any books or materials which have been provided by the school but shall refund a part of the tuition and other instructional charges in accordance with the requirements of the school's regional or national accrediting agency, if any, or rules that the Department shall promulgate for purposes of this Section. (2) Applicants not accepted by the school shall receive a refund of all tuition and fees paid. (3) Application and registration fees shall be chargeable at initial enrollment and shall not exceed $100. All fees must be disclosed in the student contract. (4) Deposits or down payments shall become part of the tuition. (5) The school shall mail a written acknowledgement of a student's cancellation or written withdrawal to the student within 15 calendar days of the date of notification. Written acknowledgement is not necessary if a refund has been mailed to the student within the 15 calendar days. (6) If the school cancels or discontinues a course, the student shall be entitled to receive from the school such refund or partial refund of the tuition, fees, and other charges paid by the student or on behalf of the student as is provided under rules promulgated by the Department. (7) Except as otherwise provided by this Act, all student refunds shall be made by the school within 45 calendar days after the date of notice of the student's cancellation or the date that the school determines that the student has officially or unofficially withdrawn. (8) A student shall give notice of cancellation to the school in writing. The unexplained absence of a student from a school for more than 30 consecutive calendar days shall constitute constructive notice of cancellation to the school. For purposes of cancellation, the cancellation date shall be the last day of attendance. (9) A school may make refunds which exceed those required by this Section. (10) A school shall provide each current student and former student with an official transcript of all hours completed by the student at that school with the grades earned by the student for those hours, even if the current or former student owes a debt, as enumerated in the Student Debt Assistance Act, provided that a student who withdraws from or drops out of a school, by written notice of cancellation or otherwise, shall not be entitled to any transcript of completed hours following the expiration of the 7-year period that began on the student's first day of attendance at the school. A reasonable fee, not exceeding $5, may be charged by the school for each transcript after the first free transcript that the school is required to provide to a student or former student under this Section.

Legislative History

(Source: P.A. 104-153, eff. 1-1-26 .)