Code: AA-2002-

BF-2002-

February 7, 2002

To: CSU Presidents

From: David S. Spence Richard P. West

Executive Vice Chancellor Executive Vice Chancellor

Chief Academic Officer Chief Financial Officer

Subject: Revised Title 5 Regulations on Refund of Fees Including Nonresident Tuition

The Board of Trustees, at its November 14, 2001 meeting, adopted revisions to the policy governing the refund of student fees including nonresident tuition. The revised refund policy, Section 41802 in Title 5 of the California Code of Regulations, took effect upon filing with the Secretary of State, which occurred on December 14, 2001. The revised policy removes the provision that students can receive a full refund of fees for withdrawal up to the fourteenth day of the term. It provides that students receive a full refund only if they cancel registration or drop all classes prior to the first day of instruction and requires that campuses refund nonresident tuition and other mandatory fees on a pro-rata basis up to the sixty percent point in the academic period.

Since the revised policy requires that campuses provide students with advance information regarding the revised policy and modify existing systems and processes for refunds, provision was included in the regulations for a transition period for implementation that ends with the beginning of the Fall term 2002. Campuses may implement new refund provisions earlier than the Fall term 2002 but are encouraged to ensure that students are provided with advance information regarding revised refund policies and procedures that may impact their enrollment and withdrawal decisions.

The revised refund policy is the culmination of deliberations of a systemwide task force convened to conduct a comprehensive review of the CSU’s refund policies and procedures. The recommendations of the task force were modified based on consultation with the CSU Financial Aid Advisory Council, Chief Administrative and Business Officers, Vice Presidents of Students Affairs, Office of General Counsel, and CSU Presidents prior to distribution for public comment and adoption by the Board of Trustees at its November meeting.

The following changes to Title 5 were adopted by the Board of Trustees:

· §41802.1 regarding refunds for first–time students receiving federal Title IV student financial aid funds was deleted in its entirety;

· §41913 regarding the refund of nonresident tuition was deleted in its entirety;

· §41802 was modified to address the refund of all mandatory fees, including nonresident tuition, and to delegate authority to campuses for the establishment of refund policies governing tuition or fees required for enrollment in courses offered through a self-support instruction program.

A copy of revised §41802, which will be incorporated in the published California Code of Regulations, is included as Attachment A.

The following summarizes changes to and new provisions of the refund policy:

· Students will no longer be required to request a refund. Any refund for which a student is eligible will be “automatic” when a student follows campus-established procedures to cancel registration, drop courses, or withdraw for the academic period.

· Students will be entitled to a full refund of mandatory fees and nonresident tuition only if they cancel their registration or drop all courses prior to the first day of instruction for an academic term or, in the case of a short course, the first class meeting.

· Students who drop units resulting in a lower tuition and/or mandatory fee obligation within the campus designated drop period and in accordance with campus procedures will be entitled to a refund of the applicable difference in tuition and/or fee levels.

· For state-supported non-standard terms or courses of less than four (4) weeks in length, students are not entitled to any refund unless the student cancels registration prior to the first day of instruction of the non-standard term or the first scheduled meeting in the case of “short” courses.”

· For state-supported semesters, quarters, and non-standard terms or courses of four (4) weeks or more in length, students who drop all courses prior to the end of the campus-designated drop period or who officially withdraw no later than the sixty percent point in the academic period shall be entitled to a pro-rata refund of nonresident tuition and mandatory fees.

· The pro-rata refund is determined based on the date of the student’s withdrawal and the length of the academic period. The length of the academic period is calculated from the first day of instruction through the final exam day of the period and excludes any breaks of five (5) days or more.

Example: The first day of instruction for the fall semester is August 27, the final day of the exam period is December 14, and there are no breaks longer than 4 days. The length of the academic period is 110 days. The sixty percent point in the terms is day 66 which falls on October 31. No student who withdraws after October 31 is entitled to a refund. If a student withdraws on October 31, the campus has “earned” sixty percent of the student’s fees and the student is entitled to a refund of forty percent of the fees. The campus may withhold an administrative fee from the refund amount.

· Any refund due a student is to be applied first toward any required return of student financial aid funds from federal, state, institutional, or external sources and then the balance may be returned to the student or, with the student’s concurrence, carried as a credit balance on the student’s account with the university.

· Exceptions to the policy, providing that the full amount of nonresident tuition and mandatory fees be refunded, are authorized where the fees were assessed or collected in error, the course for which the tuition and fees were assessed or collected was cancelled by the campus, the campus makes a delayed decision that a student was not eligible to enroll in the term for which mandatory fees were assessed and collected and the delayed decision was not due to a student not providing complete or accurate information, or the student was activated for compulsory military service.

· Campuses are to provide for a process whereby a student or an authorized representative may petition for a refund under exceptional circumstances under which the campus chief financial officer or designee is able to determine that the tuition and fees have not been earned by the campus.

· Penalty fees are not subject to refund and, in assessing any security or guaranty fees, the campus must stipulate any conditions for the collection of the fees and provisions for refund.

· §41802((d)(3) of the revised refund policy delegates to campuses the authority for establishing refund policies for special session and extension course tuition fees offered through self-support programs. Policies and implementing procedures should be appropriately made known to prospective students prior to their registration for such courses.

As indicated earlier, while changes to Title 5 are effective upon filing with the Secretary of State, the regulation stipulates that campuses have a transition period that ends with the beginning of the Fall term 2002 to implement the new refund policies. Selected provisions of the new refund policy may be implemented earlier as administrative processes are adapted (e.g., not requiring a written application for refunds) and sufficient disclosures are provided to prospective students in advance of registration (e.g., extended education courses for summer enrollment periods.) Campuses should ensure that all references to the refund policies and procedures are updated appropriately in all publications (e.g., catalog copy, schedules of classes, other registration materials), both paper and electronic. Attachment B provides mandatory catalog copy regarding refunds of student fees and tuition.

As of the effective date for modification of the refund policy, the authorized administrative charges for refunds were $5.00 for mandatory systemwide fees, $10.00 for special session fees, and a maximum of $20.00 for extension course fees. These fee levels were established in Title 5 Section 41802 prior to the November 2001 revision. The revised Title 5 Section 41802 no longer includes reference to "refund administrative charge" fee levels. Therefore, campus presidents have the authority to adjust the "refund administrative charge", a Category IV fee as outlined in the Executive Order 740 governing CSU Student Fee Policy, using the above-referenced levels as the base fees.

Several questions have been posed regarding the refund policy. Attachment C includes these questions and responses that may assist campuses in implementing the revised policy

Questions regarding the revised refund policy provisions in Title 5 and the information in this memorandum may be directed to Ms. Mary L. Robinson, Associate Director, Academic Affairs, Student Academic Support at mlrobinson@calstate.edu or (562) 951-4737 or to_________, ________, Business Affairs at or (562) 951-____.

DSS:mlr

Attachments (3)

cc: Chancellor Charles B. Reed

Dr. Gary A. Hammerstrom

Provosts/Vice Presidents of Academic Affairs

Vice Presidents of Administration

Vice Presidents of Student Affairs

Deans of Extended Education

Business Managers

Directors, Admissions and Records

Directors, Financial Aid

Public Affairs Officers