Refund Policies automatically calculate refunds for invoiced charges when a student withdraws from courses. Here's how they work:
- You create a refund policy, specifying refund details within the policy's brackets and other options.
- You add the policy to a student account, whether on an individual student's profile, or by making it the default for a particular tuition schedule.
- The student enrolls in courses, generating tuition charges (and other fees). You invoice those charges.
- At a certain point in the term, the student has to be withdrawn from some or all of his courses.
- When the withdrawal occurs, if it's within the timeframe of the refund policy, a pending credit is created for the refundable charges (tuition and any fees marked refundable).
- Refunds are only calculated for charges that were generated by a tuition schedule or fee rules—so, if you manually add a fee, the refund policy won’t catch it.
If a student withdraws before the term start date, he will receive a 100% refund of all refundable charges. Refund Policies let you enforce a maximum number of days into the term in which a student can get a refund (see below).
Creating a new refund policy
Here's how to set up a new Refund Policy.
- Go to Billing > Settings > Refund Policies
- Click Add a Refund Policy.
- Give it a name and select the Type:
- Prorated refunds let you offer an automatically-calculated amount back to the student.
- If you offer a 100% refund a certain number of days into the term, you can choose when to begin the proration—after the 100% period ends or on the term start date.
- To limit the maximum pro-rated refund, enter a number of days into the term after which refunds are prohibited.
- Custom refunds let you offer a specific percentage back to the student based on whether he withdraws a certain number of days into the term. For each bracket, enter the maximum days into the term and a Refund %. The minimum days for the next bracket is automatically filled in for you.
- To be very clear: days refers to calendar days, NOT business days!
- Prorated: A withdrawn student receives a 100% refund 7 or fewer days into the term. From 7 days to 60 days, he receives a prorated refund. After 60 days, he receives no refund.
- Custom: A withdrawn student receives a 100% refund 7 or fewer days into the term. From 8 days to 21 days, he receives an 85% refund. From 22 to 42 days, a 70% refund, and from 43 to 60, a 50% refund. After 60 days, he receives no refund.