Deposit Refund Policy

[captainbanana]

This is regards to the California education code 94919, which is linked here http://www.bppe.ca.gov/lawsregs/ppe_act.shtml#94919

I applied to a school which required a $2,000 deposit for me to "reserve my place" for the incoming class. It was noted on the response form that the $2,000 dollars is non-refundable and non-transferable. Two weeks later I received notice from another school that I would much rather attend and asked this institution for a refund of my $2,000, to which they replied they cannot do that under any circumstances.

In accordance to California education code 94919 and 94922 it states that:

94919. Institutions Participating In Federal Student Financial Aid Programs
(a) An institution that participates in the federal student financial aid programs complies with this article by complying with applicable regulations of the federal student financial aid programs under Title IV of the federal Higher Education Act of 1965.
(b) The institution shall advise each student that a notice of cancellation shall be in writing, and that a withdrawal may be effectuated by the student's written notice or by the student's conduct, including, but not necessarily limited to, a student's lack of attendance.
(c) The institution shall also provide a pro rata refund of nonfederal student financial aid program moneys paid for institutional charges to students who have completed 60 percent or less of the period of attendance.
(d) Institutions shall refund 100 percent of the amount paid for institutional charges, less a reasonable deposit or application fee not to exceed two hundred fifty dollars ($250), if notice of cancellation is made through attendance at the first class session, or the seventh day after enrollment, whichever is later.

94922. Waiving Provisions Prohibited
A student may not waive any provision of this article.

Thus I am wondering if I am entitled to receiving my money back by any chance due to the fact that this institution does participate in federal student financial aid programs?

Any input would be much appreciated

Thank you!

 

[Ohiogal]

This is regards to the California education code 94919, which is linked here http://www.bppe.ca.gov/lawsregs/ppe_act.shtml#94919

I applied to a school which required a $2,000 deposit for me to "reserve my place" for the incoming class. It was noted on the response form that the $2,000 dollars is non-refundable and non-transferable. Two weeks later I received notice from another school that I would much rather attend and asked this institution for a refund of my $2,000, to which they replied they cannot do that under any circumstances.

In accordance to California education code 94919 and 94922 it states that:

94919. Institutions Participating In Federal Student Financial Aid Programs
(a) An institution that participates in the federal student financial aid programs complies with this article by complying with applicable regulations of the federal student financial aid programs under Title IV of the federal Higher Education Act of 1965.
(b) The institution shall advise each student that a notice of cancellation shall be in writing, and that a withdrawal may be effectuated by the student's written notice or by the student's conduct, including, but not necessarily limited to, a student's lack of attendance.
(c) The institution shall also provide a pro rata refund of nonfederal student financial aid program moneys paid for institutional charges to students who have completed 60 percent or less of the period of attendance.
(d) Institutions shall refund 100 percent of the amount paid for institutional charges, less a reasonable deposit or application fee not to exceed two hundred fifty dollars ($250), if notice of cancellation is made through attendance at the first class session, or the seventh day after enrollment, whichever is later.

94922. Waiving Provisions Prohibited
A student may not waive any provision of this article.

Thus I am wondering if I am entitled to receiving my money back by any chance due to the fact that this institution does participate in federal student financial aid programs?

Any input would be much appreciated

Thank you!

Those are two different things.
You are not entitled to ANY of your holding fee back. That reservation fee has nothing to do with institutional charges for classes. You signed a contract in which the terms were given. You agreed with those terms.

 

[swalsh411]

Doesn't sound like a "reservation fee" to me but rather a deposit on the tuition he would have paid. If that is true then why wouldn't that law apply?

Just because a contract was signed doesn't neccessarily mean he is bound by it.

 

[captainbanana]

Doesn't sound like a "reservation fee" to me but rather a deposit on the tuition he would have paid. If that is true then why wouldn't that law apply?

Just because a contract was signed doesn't neccessarily mean he is bound by it.

That is correct swalsh411,

The deposit is $2,000 and, upon matriculation, is applied towards the first semester's tuition.

Thus, I informed the school upon my decision not to attend very early in the application process to make it fair to both parties, but unfortunately they have stated my deposit is non-refundable.

Thanks again for your input and advice!!!

 

[Zigner]

Was the money you paid obtained from financial aid?

 

[justalayman]

captainbanana;3066839]

I applied to a school which required a $2,000 deposit for me to "reserve my place" for the incoming class. It was noted on the response form that the $2,000 dollars is non-refundable and non-transferable. Two weeks later I received notice from another school that I would much rather attend and asked this institution for a refund of my $2,000, to which they replied they cannot do that under any circumstances.

in writing?

Did you simply ask for a refund or did you give notice of cancellation?

Had classes started yet?

 

[ecmst12]

I would start with a certified letter to the dean of admissions, including the statute quoted above. Hopefully you won't need to go any further.