SB 1069, as introduced, Torres. Private postsecondary education: refunds.
The California Private Postsecondary Education Act of 2009 requires, among other things, institutions that do not participate in the federal student financial aid programs to comply with specified requirements, including to refund to a student 100% of the amount paid for institutional charges, less a reasonable deposit or application fee, as specified, if notice of cancellation is made through attendance at the first class session, or the 7th class day after enrollment, whichever is later.
This bill would make a nonsubstantive change to the above provisions relating to refunds by institutions not participating in federal student financial aid programs.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 94920 of the Education Code is amended
2to read:
An institution that does not participate in the federal
4student financial aid programs shall do all of the following:
5(a) The institution shall advise each student that a notice of
6cancellation shall be in writing, and that a withdrawal may be
P2 1effectuated by the student’s written notice or by the student’s
2conduct, including, but not necessarily limited to, a student’s lack
3of attendance.
4(b) Institutions shall refund 100 percent of the amount paid for
5institutional charges, less a reasonable deposit or application fee
6not to exceed two hundred fifty dollars ($250), if notice of
7cancellation isbegin delete madeend deletebegin insert
providedend insert through attendance at the first class
8session, or the seventh day after enrollment, whichever is later.
9(c) The bureau may adopt by regulation a different method of
10calculation for instruction delivered by other means, including,
11but not necessarily limited to, distance education.
12(d) The institution shall have a refund policy for the return of
13unearned institutional charges if the student cancels an enrollment
14agreement or withdraws during a period of attendance. The refund
15policy for students who have completed 60 percent or less of the
16period of attendance shall be a pro rata refund.
17(e) The institution shall pay or credit refunds within 45 days of
18a student’s cancellation or withdrawal.
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