SECTION 807.263. Refund Requirements

(a) The Agency, after considering the specific facts associated with a school's conduct, may order a full or partial refund to affected students if the school:

(1) does not provide a class with:

(A) an approved instructor;

(B) an instructor for whom an application has been properly submitted to the Agency; or

(C) a temporary instructor for whom the school submitted notice to the Agency;

(2) fails to maintain the instructors, facilities, equipment, or courses of instruction on the basis of which Agency approval was issued or student enrollment was obtained, or to submit timely requests for approval of substantive changes thereto;

(3) violates any provision of this chapter in the process of soliciting and enrolling the student;

(4) fails to adhere to applicable academic, attendance, and refund policies that meet state requirements and apply to the course enrolled in, as published at the time of the student's enrollment in the course;

(5) fails to undertake a good faith effort to furnish the student, upon satisfactory completion of the program, with a certificate of completion. A school may withhold the transcript or certificate until the student has paid outstanding financial obligations to the school. Evidence of a good faith effort shall be maintained in the student's file in one of the following forms:

(A) An acknowledgement of receipt of certificate signed and dated by the student;

(B) Proof of a certified mailing to the student's last known address;

(C) Proof of a certified mailing to the student's permanent address, if different from the student's last known address; or

(D) Proof of a certified mailing to the address of the student's parent or legal guardian, if known and different from the student's last known or permanent addresses; or

(6) does not have course approval or the required certificate of approval from the Agency.

(b) To be considered a violation subject to refund under subsection (a)(1) - (6) of this section, a school's action shall be determined to be more than a technical error or a nonsubstantive change in operations.

(c) If any of the violations in subsection (a)(1) - (6) of this section apply to more than one class period, students are entitled to a full refund for each such class attended.

(d) The length of a program, for purposes of calculating refunds owed, is the shortest scheduled time period in which the program may be completed by continuous attendance of a full-time student.

(e) A non-Title IV school, or a Title IV school voluntarily taking attendance, shall calculate refunds for students based upon scheduled hours of classes through the last date of attendance. A Title IV school shall calculate refunds for students based upon scheduled hours of classes through the last documented day of an academically related activity. Neither type of school shall count leaves of absence, suspensions, school holidays, days when classes are not offered, and summer vacations for purposes of calculating a student's refund.

(f) For all programs other than seminars, a student may cancel enrollment, request a full refund, and request a release from any obligations to the school within the first three scheduled class days.

(g) A school may withhold from the refund required by subsections (a) - (c) and (f) of this section any amount as retainable by the school pursuant to §132.061 of the Act. More specifically, the school may withhold items of extra expense to the student referenced in §132.061(b)(6) of the Act, as long as they are necessary for the portion of the program attended and are separately stated in the enrollment agreement. Any items of extra expense not required for the portion of the program attended must be included in the refund.

(h) Students are entitled to a refund paid in accordance with the school's policy, which must provide for refunds at least equivalent to the provisions in §132.061 and §132.0611 of the Act, if students withdraw or are discontinued from a program prior to completion.

Source Note: The provisions of this §807.263 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914