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90_SB1664sam002
LRB9010089THpkam02
1 AMENDMENT TO SENATE BILL 1664
2 AMENDMENT NO. . Amend Senate Bill 1664, AS AMENDED,
3 in the body of Section 5, by replacing all of Sec. 15.1a with
4 the following:
5 "(105 ILCS 425/15.1a) (from Ch. 144, par. 150.1a)
6 Sec. 15.1a. The Superintendent shall issue rules and
7 regulations providing for the establishment of a fair and
8 equitable refund policy for each private business and
9 vocational school. Such refund policy shall provide that:
10 1. Schools shall, when a student gives written notice of
11 cancellation, provide a refund in the amount of at least the
12 following:
13 a. When notice of cancellation is given before midnight
14 of the fifth business day within 6 days after the date of
15 enrollment but prior to the first day of class, all
16 application-registration fees, tuition, and any other charges
17 shall be refunded to the student;
18 b. When notice of cancellation is given after midnight
19 of the fifth business the sixth day following acceptance
20 enrollment but prior to the close of business on the
21 student's first day of class attendance, the school may
22 retain no more than the application-registration fee which
23 may not exceed $150 or 50% of the cost of tuition, whichever
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1 is less $100;
2 c. When notice of cancellation is given after the
3 student's completion of the first day of class attendance,
4 but prior to the student's completion of 5% of the course of
5 instruction, the school may retain the
6 application-registration fee, an amount not to exceed 10% of
7 the tuition and other instructional charges or $300,
8 whichever is less, and, subject to the limitations of
9 paragraph 12 of this Section, plus the cost of any books or
10 materials which have been provided by the school.
11 d. When a student has completed in excess of 5% of the
12 course of instruction the school may retain the
13 application-registration fee and the cost of any books or
14 materials which have been provided by the school but shall
15 refund a part of the tuition and other instructional charges
16 in accordance with whichever of the following applies:
17 (1) A. A school which is accredited by a nationally
18 recognized accrediting agency may use this policy or any
19 other refund policy filed with the Superintendent which
20 returns more money at each of the following levels of the
21 schedule to the student. As used herein, a "nationally
22 recognized accrediting agency" means an agency or
23 association designated by the Secretary of the U.S.
24 Department of Education pursuant to provisions of the
25 Higher Education Act of 1965 (P.L. 89-329) and related
26 regulations.
27 After 5% of the course of instruction, but within
28 the first 4 weeks of classes the school shall refund at
29 least 80% of the tuition;
30 During the first 25% of the course, the school shall
31 refund at least 55% of the tuition;
32 During the second 25% of the course the school shall
33 refund at least 30% of the tuition;
34 In cases of withdrawal after 50% of the course, the
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1 school may commit the student to the remaining obligation
2 of tuition.
3 As used herein, a "nationally recognized accrediting
4 agency" means an agency or association designated by the
5 Secretary of the U.S. Department of Education pursuant to
6 provisions of the Higher Education Act of 1965 (P.L.
7 89-329) and related regulations.
8 (2) B. All other schools regulated under this
9 Section may retain an amount computed prorata by days in
10 class plus 10% of tuition and other instructional charges
11 up to completion of 60% of the course of instruction.
12 When the student has completed in excess of 60% of the
13 course of instruction, the school may retain the
14 application/registration fee and the entire tuition and
15 other charges.
16 (3) The refund policy for short courses up to 20
17 clock hours shall refund prorata up to 60% completion of
18 the course.
19 (4) All schools that offer courses of instruction
20 taught by distance education methods shall make refunds
21 to students who cancel their instruction in the following
22 manner:
23 (A) Students who enroll in a distance
24 education course of instruction shall have 5
25 business days from the date of their initial
26 acceptance to cancel the enrollment and receive a
27 complete refund of moneys paid to the school.
28 (B) Thereafter, the school shall retain a
29 prorata amount based on the percentage of lessons
30 completed, up to 60% of the course of instruction,
31 plus 10% of the total tuition and other
32 instructional charges.
33 (C) If more than 20% of the lessons in the
34 course of instruction are completed within the
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1 5-business-day cooling off period, the distance
2 education refund policy stated above applies from
3 the beginning of the first lesson completed.
4 (D) Refunds shall be based on the last lesson
5 completed. use this policy or any other required
6 policy filed with the Superintendent which returns
7 more money at each of the following levels of the
8 schedule to the student:
9 Percentage of days in class Percentage of tuition
10 completed by student at and other instructional
11 notice of cancellation: charges which School
12 may retain:
13 in excess of 5% - 10% 15%
14 in excess of 10% - 15% 22%
15 in excess of 15% - 20% 28%
16 in excess of 20% - 25% 33%
17 in excess of 25% - 30% 38%
18 in excess of 30% - 35% 43%
19 in excess of 35% - 40% 47%
20 in excess of 40% - 45% 52%
21 in excess of 45% - 50% 60%
22 in excess of 50% - 55% 64%
23 in excess of 55% - 60% 68%
24 in excess of 60% - 65% 73%
25 in excess of 65% - 70% 75%
26 in excess of 70% - 75% 80%
27 in excess of 75% - 80% 85%
28 When notice of cancellation is given after the student
29 has completed over 80% of the course of instruction measured
30 by days in class, the school may retain the
31 application-registration fee and the entire tuition and other
32 charges.
33 2. A student, who on personal initiative and without
34 solicitation enrolls, starts, and completes a course of
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1 instruction before midnight of the fifth business the sixth
2 day after the enrollment agreement is signed, is not subject
3 to the cancellation refund provisions of this Section.
4 3. Applicants not accepted by the school shall receive a
5 refund of all tuition and fees paid within 30 calendar days
6 after the determination of non-acceptance is made.
7 4. Application-registration fees shall be chargeable at
8 initial enrollment and shall not exceed $150 or 50% of the
9 cost of tuition, whichever is less $100.00.
10 5. Deposits or down payments shall become part of the
11 tuition.
12 6. The school shall mail a written acknowledgement of a
13 student's cancellation or written withdrawal to the student
14 within 15 calendar days of the postmark date of notification.
15 Such written acknowledgement is not necessary if a refund has
16 been mailed to the student within the 15 calendar days.
17 7. (Blank). If the school cancels or discontinues a
18 course, the student shall have all tuition, fees, and other
19 charges refunded.
20 8. All student refunds shall be made by the school
21 within 30 calendar days from the date of receipt of the
22 student's cancellation.
23 9. A student may give notice of cancellation to the
24 school in writing. The unexplained absence of a student from
25 a school for more than 15 school days shall constitute
26 constructive notice of cancellation to the school. For
27 purposes of cancellation the date shall be the last day of
28 attendance.
29 10. A school may make refunds which exceed those
30 prescribed in this Section. If the school has a refund policy
31 that returns more money to a student than those policies
32 prescribed in this Section, that refund policy must be filed
33 with the Superintendent.
34 11. A school shall refund all monies paid to it in any
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1 of the following circumstances:
2 a. (a) the school did not provide the prospective
3 student with a copy of the student's valid enrollment
4 agreement and a current catalog or bulletin;
5 b. (b) the school cancels or discontinues the course of
6 instruction in which the student has enrolled;.
7 c. the school fails to conduct classes on days or times
8 scheduled, detrimentally affecting the student.
9 12. A school must refund any book and materials fees
10 when: (a) the book and materials are returned to the school
11 unmarked; and (b) the student has provided the school with a
12 notice of cancellation.
13 (Source: P.A. 85-1382.)".