1999 Minnesota Statutes

     141.271 Refunds. 

    Subdivision 1.    Student.  For the purposes of this 
 section, "student" means the party to the contract, whether the 
 party is the student, the student's parent or guardian, or other 
 person on behalf of the student. 

    Subd. 1a.    Notice; right to refund.  Every school 
 shall notify each student, in writing, of acceptance or 
 rejection.  In the event that the student is rejected by the 
 school, all tuition, fees and other charges shall be refunded.  

    Subd. 2.    Schools using written contracts.  (a) 
 Notwithstanding anything to the contrary, a school that uses a 
 written contract or enrollment agreement shall refund all 
 tuition, fees and other charges paid by a student, if the 
 student gives written notice of cancellation within five 
 business days after the day on which the contract was executed 
 regardless of whether the program has started.  

    (b) When a student has been accepted by the school and has 
 entered into a contractual agreement with the school and gives 
 written notice of cancellation following the fifth business day 
 after the date of execution of contract, but before the start of 
 the program in the case of resident schools, or before the first 
 lesson has been serviced by the school in the case of distance 
 education schools, all tuition, fees and other charges, except 
 15 percent of the total cost of the program but not to exceed 
 $50, shall be refunded to the student. 

    Subd. 3.    Schools not using written contracts.  (a) 
 Notwithstanding anything to the contrary, a school that does not 
 use a written contract or enrollment agreement shall refund all 
 tuition, fees and other charges paid by a student if the student 
 gives written notice of cancellation within five business days 
 after the day on which the student is accepted by the school 
 regardless of whether the program has started. 

    (b) When a student has been accepted by the school and 
 gives written notice of cancellation following the fifth 
 business day after the day of acceptance by the school, but 
 before the start of the program, in the case of resident 
 schools, or before the first lesson has been serviced by the 
 school, in the case of distance education schools, all tuition, 
 fees and other charges, except 15 percent of the total cost of 
 the program but not to exceed $50, shall be refunded to the 
 student. 

    Subd. 4.    Resident schools.  When a student has been 
 accepted by a school offering a resident program and gives 
 written notice of cancellation after the start of the period of 
 instruction for which the student has been charged, but before 
 completion of 75 percent of the period of instruction, the 
 amount charged for tuition, fees, and all other charges shall be 
 prorated as a portion of the total charges for tuition, fees, 
 and all other charges.  An additional 25 percent of the total 
 cost of the period of instruction may be added, but shall not 
 exceed $100.  After completion of 75 percent of the period of 
 instruction for which the student has been charged, no refunds 
 are required.  

    Subd. 5.    Distance education schools.  When a student 
 has been accepted by a distance education school and gives 
 written notice of cancellation after the first lesson has been 
 completed by the student and serviced by the school, but before 
 completion of 75 percent of the program, the amount charged for 
 tuition, fees and all other charges for the completed lessons 
 shall be prorated as a portion of the total charges for tuition, 
 fees and all other charges.  An additional 25 percent of the 
 total cost of the program may be added but shall not exceed 
 $75.  After completion of 75 percent of the program, no refunds 
 are required. 

    Subd. 6.    Combination distance education-resident 
 schools.  When a student has been accepted by a school that 
 offers a combination distance education-resident program and 
 gives written notice of cancellation after the start of the 
 program or after the first lesson has been completed by the 
 student and serviced by the school, whichever phase comes first, 
 the school shall refund all tuition, fees and other charges as 
 provided in subdivision 4 if cancellation occurs during the 
 resident portion, and as provided for in subdivision 5 if 
 cancellation occurs during the distance instruction portion.  If 
 the cancellation occurs before the student has commenced one of 
 the phases, the price of that phase shall not be considered in 
 making the proration and the student shall be entitled to a full 
 refund of the charges.  Conversely, if the student has completed 
 a phase of the program before cancellation, the charges may be 
 retained by the school provided that the total tuition, fees and 
 other charges for each phase have been stated separately in the 
 school's catalog or electronic display and contract or 
 enrollment agreement.  

    Subd. 7.    Equipment and supplies.  The fair market 
 retail price, if separately stated in the catalog and contract 
 or enrollment agreement, of equipment or supplies furnished to 
 the student, which the student fails to return in condition 
 suitable for resale within ten business days following 
 cancellation may be retained by the school and may be deducted 
 from the total cost for tuition, fees and all other charges when 
 computing refunds.  

    An overstatement of the fair market retail price of any 
 equipment or supplies furnished the student shall be considered 
 inconsistent with this provision.  

    Subd. 8.    Time of refund.  Each school shall 
 acknowledge in writing any valid notice of cancellation within 
 ten business days after the receipt of such notice and within 30 
 business days shall refund to the student any amounts due and 
 arrange for termination of the student's obligation to pay any 
 sum in excess of that due under the cancellation and refund 
 policy.  

    Subd. 9.    Limitation.  A school cannot make its 
 refund policy conditional upon compliance with the school's 
 regulations or rules of conduct.  

    Subd. 10.    Cancellation occurrence.  Written notice 
 of cancellation shall take place on the date the letter of 
 cancellation is postmarked or, in the cases where the notice is 
 hand carried, it shall occur on the date the notice is delivered 
 to the school.  

    Subd. 11.    Date of execution.  The date of execution 
 of the contract or enrollment agreement shall be presumed to be 
 the date of delivery of the notice of acceptance; and if 
 delivered by mail, the postmark date of the letter of acceptance.

    Subd. 12.    Instrument not to be negotiated.  A school 
 shall not negotiate any promissory instrument received as 
 payment of tuition or other charge prior to completion of 50 
 percent of the program.  Prior to that time, instruments may be 
 transferred by assignment to purchasers who shall be subject to 
 all defenses available against the school named as payee.  

    Subd. 13.    Cancellation of enrollment.  If a student's 
 enrollment in a school is canceled for any reason, the school 
 shall notify any agency known to the school to be providing 
 financial aid to the student of the cancellation within 30 days. 

    HIST: 1973 c 714 s 12; 1980 c 559 s 2,3; 1986 c 444; 1996 c 
 366 s 4; 1999 c 214 art 3 s 22-28