1. (a) For purposes of determining a refund under the Act and this Division, the following shall apply to any student who has either submitted a written statement of withdrawal to an institution or has received a written statement of withdrawal from the institution in accordance with the withdrawal policy stated in the institution's catalog pursuant to section 94909(a)(8)(B) of the Code.

   1. (1) The institution's withdrawal and refund policies and procedures for withdrawals effectuated by a student shall include, at a minimum:

      1. (A) A statement that withdrawal may be effectuated by the student's written notice;
      2. (B) The acceptable method(s) of delivery of a student's notice to withdraw;
      3. (C) The office(s) or person(s) to whom the notice to withdraw must be delivered;
      4. (D) The date that the notice to withdraw is considered effective, which shall be no later than the date received by the institution.

   2. (2) The institution's withdrawal and refund policy and procedures for student withdrawals effectuated by an institution shall include, at a minimum:

      1. (A) A statement that withdrawal shall be effectuated by the institution's written notice regarding the student's conduct, including, but not necessarily limited to, a student's lack of attendance;
      2. (B) The conditions under which a student may be withdrawn for conduct reasons;
      3. (C) The maximum number of consecutive class days a student may be absent before being deemed withdrawn by the institution;
      4. (D) The date that the notice to withdraw is considered effective. If an institution withdraws a student for lack of attendance, the date of notice to withdraw shall be the student's last date of attendance.

   3. (3) A pro rata refund pursuant to section 94919(c) or 94920(d) or 94927 of the Code shall be no less than the total amount owed by the student for the portion of the educational program provided subtracted from the amount paid by the student, calculated as follows:

      1. (A) The amount of the refund owed to the student equals the total charges paid by the student, minus the daily or hourly tuition charge for the program (total institutional charge minus any non-refundable charges, divided by the number of days or hours in the program), multiplied by the number of days or hours the student attended prior to withdrawal, and minus any non-refundable charges. Any hours or days prior to the student's last day of attendance for which the student was scheduled to attend but was absent shall be included in the calculation of days or hours attended.
      2. (B) All amounts that the student has paid shall be subject to pro rata refund unless the enrollment agreement and the refund policy outlined in the catalog specify a non-refundable deposit or application fee, not to exceed two hundred fifty dollars ($250), or non-refundable amounts paid for educational materials, or both. The enrollment agreement and catalog shall specify whether and under what circumstances the amounts paid for educational materials are non-refundable.
      3. (C) Except as provided for in subdivision (a)(3)(B) of this section, all amounts paid by the student in excess of what is owed as calculated in subdivision (a)(3)(A) shall be refunded.
      4. (D) If the institution provides a pro rata refund pursuant to sections 94919(c) or 94920(d) of the Code, any Student Tuition Recovery Fund assessments paid shall be non-refundable.
2. (b) If an institution has collected money from, or on behalf of, a student for transmittal on the student's behalf to a third party for a bond, library usage, or fees for a license, application, or examination and the institution has not paid the money to the third party or has not yet been billed or invoiced by the third party at the time of the student's or institution's withdrawal, the institution shall refund the money to the student or third party payer within 45 calendar days of the student or institution withdrawal.

3. (c) An institution shall refund any credit balance on the student's account within 45 calendar days after the date of the student or institution withdrawal, and shall provide the student with a copy of the document described by section 71920(b)(10).

   1. (1) If a refund is made to a third party on behalf of a student who has withdrawn or been withdrawn from an educational program, the institution shall provide the student, within 45 calendar days after the date of the student or institution withdrawal, a written notice as described in section 71920(b)(10), in hard-copy or electronic format, itemizing the amount refunded to each third party, the name of the third party, and the date of each refund, as applicable.
4. (d) The institution shall maintain a log, kept current on a monthly basis in electronic version or hard copy, of all student and institution withdrawals. The log shall include the names, addresses, telephone numbers, personal email addresses, dates of withdrawal, and refund amounts of all students withdrawn from the institution during the previous calendar year.

Note: Authority cited: Sections 94877 and 94885, Education Code. Reference: Sections 94885, 94919, 94920 and 94927, Education Code.

History

1. New section filed 11-18-2025; operative 1-1-2026 (Register 2025, No. 47).