714.23  Refund policies.
  1.  A person offering a course of instruction at the postsecondary level, for profit, that is more than four months in length and leads to a degree, diploma, or license, shall make a pro rata refund of no less than ninety percent of the tuition for a terminating student to the appropriate agency based upon the ratio of completed number of scheduled school days to sixty percent of the scheduled school days of the school term or course.
  2.  Notwithstanding the provisions of subsection 1, the following refund policy shall apply:
  a.  If a terminating student has completed sixty percent or more of a school term or course that is more than four months in length, the person offering the course of instruction is not required to refund tuition for the student. However, if, at any time, a student terminates a school term or course that is more than four months in length due to the student’s physical incapacity or due to the transfer of the student’s spouse’s employment to another city, the terminating student shall receive a refund of tuition in an amount which equals the amount of tuition multiplied by the ratio of the remaining number of school days to the total school days of the school term or course.
  b.  A refund of ninety percent of the tuition for a terminating student shall be paid to the appropriate agency based upon the ratio of completed number of school days to the total school days of the school term or course. This paragraph applies to those persons offering courses of instruction at the postsecondary level, for profit, whose cohort default rate for students under the Stafford loan program as defined by the United States department of education is more than one hundred ten percent of the national average cohort default rate for that program for that period or six percent, whichever is higher.
  3.  If the financial obligations of a student are for three or fewer months duration, this section does not apply.
  4.  Refunds shall be paid to the appropriate agency within thirty days following the student’s termination.
  5.  A student who terminates a course of instruction or term shall not be charged any fee or other monetary penalty for terminating a course of instruction or term other than a reduction in tuition refund as specified in this section.
  6.  A violation of this section is a simple misdemeanor.
85 Acts, ch 220, §1; 90 Acts, ch 1222, §3; 91 Acts, ch 97, §61