Current through September 24, 2024
(1) All
authorized institutions must comply with the laws of the local, state, and
federal government concerning cancellations and refunds and must revise all
policies and practices if laws are revised.
(2) An authorized institution may use the
following refund policies:
(a) The refund
policy contained in paragraph (3) of this rule;
(b) An institution policy, as provided for in
paragraph (3) of this rule except the institution may increase the percentage
listed in paragraph (3)(c) to more than 20%; or
(c) As applicable, a refund policy mandated
by an accreditor or as a condition for students of the institution to
participate in a governmental student assistance program, such as Veterans
Benefits.
(3) The refund
policy is as follows:
(a) A student who at any
time withdraws, is withdrawn (including expulsion) by the institution, or
otherwise fails to attend class is entitled to a full refund of any fee,
regardless of whether the fee is included in tuition, paid to the institution
for tangible goods or services not delivered to or fully provided to the
student.
(b) In addition to
subparagraph (3)(a) of this rule, if a student fails to begin class on the
program start date as written in the enrollment agreement or as amended by the
institution, the refund shall equal the sum of all refundable fees paid and, if
the student has institutional loans, forgiveness of the amounts owed by the
student, less an administrative fee of one hundred dollars ($100.00).
(c) In addition to subparagraph (43)(a) of
this rule, if after the program has commenced and before expiration of twenty
percent (20%) or less of the period of enrollment for which the student was
charged, a student withdraws, is withdrawn (including expulsion) by the
institution, or otherwise fails to attend classes, the refund shall be a pro
rata portion of refundable fees, less an administrative fee of one hundred
dollars ($100.00). If applicable, the refund shall include forgiveness of
institutional loans. For example, if a student's last day of attendance equals
ten percent (10%) of the period of enrollment for which the student was
charged, the institution is entitled to retain only ten percent (10%) of the
refundable fees charged for the period of enrollment as well as one hundred
dollars ($100.00). However, in no instance will the institution be responsible
for any refund in excess of the amount paid by or on behalf of the student for
the period of enrollment for which the student was charged.
(d) Except as provided for in subparagraph
(3)(a) of this rule, if after expiration of twenty percent (20%) of the period
of enrollment for which the student was charged, a student withdraws, is
withdrawn (including expulsion) by the institution, or otherwise fails to
attend classes, the student may be deemed obligated for one hundred percent
(100%) of the refundable fees charged by the institution up to the last period
of enrollment charged.
(e) For a
student who cannot complete one (1) or more classes because the institution
discontinued such a class during a period of enrollment for which the student
was charged, the institution shall refund the sum of all refundable fees paid
and, if the student has institutional loans, forgive the amounts owed by the
student.
(4) For
purposes of calculating percentages of attendance in clock hour programs the
number of scheduled hours up to the last date of attendance will be the
numerator. For credit hour programs, percentages are calculated based on
calendar days.
(5) When computing
refunds pursuant to the refund policy, the last day of attendance for a student
who meets the definition of enrolled shall be either:
(a) The date of the student's last recorded
day of attendance or
(b) When
applicable, the date the student failed to return from an approved leave of
absence.
(6) Pursuant to
Rule .15(4) of these rules, the reconciled account statement must indicate the
period of enrollment for which the student is being charged for each tuition
charge. If the institution does not maintain the requisite account statement or
the reconciled account statement does not clearly indicate the period of
enrollment for which the student is being charged, the institution shall be
liable for all refundable fees paid by or on behalf of the student.
(7) In any event, the last date of attendance
will be determined and any refund due disbursed within forty-five (45) calendar
days of the last date of attendance.
Authority: T.C.A. §§
49-7-2005,
49-7-2006,
49-7-2007, 49-7-2008, and
49-7-2013.
