2007 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. 1b. Short-term programs. Licensed schools conducting programs not exceeding 40
hours in length shall not be required to make a full refund once a program has commenced and
shall be allowed to prorate any refund based on the actual length of the program as stated in the
school catalog or advertisements and the number of hours attended by the student.
    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, or the school has actual notice of a student's
nonattendance 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 based on number of days in the term 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, and which may reasonably be
resold, 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. If a student has not attended class for
a period of 21 consecutive days without contacting the school to indicate an intent to continue
in school or otherwise making arrangements concerning the absence, the student is considered
to have withdrawn from school for all purposes as of the student's last documented date of
attendance.
    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, except that 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.
    Subd. 14. Closed school. In the event a school closes for any reason during a term and
interrupts and terminates classes during that term, all tuition for the term shall be refunded to the
students or the appropriate state or federal agency or private lender that provided any funding for
the term and any outstanding obligation of the student for the term is canceled.
History: 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; 2005 c 107 art 3 s 10-14; 2007 c 144 art 3 s 26,27