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Setting up refund policies

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Refund Policies automatically calculate refunds for invoiced charges when a student withdraws from courses. Here's how they work:

  1. You create a refund policy, specifying refund details within the policy's brackets and other options.
  2. 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.
  3. The student enrolls in courses, generating tuition charges (and other fees). You invoice those charges.
  4. At a certain point in the term, the student has to be withdrawn from some or all of his courses.
  5. 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. 
  6. You then invoice those credits, and either apply them to the student's charges or record an outgoing payment.

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

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To set up a Refund Policy, start by going to go to Billing > Settings > Refund Policies.

  1. Click Add a Refund Policy.
  2. Give it a name, and then select the Type.
  3. If you select Prorated, you’ll have an option to prohibit refunds after a certain number of days in the term. This limits the maximum Pro-rated refund. For example, say you have a 100-day-long term and you enter 60. If a student withdraws on the 61st day, he’ll get no refund. 
  4. If you select Custom, you’ll have options to add refund brackets. These specify what refund a student gets if they withdraw 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.
  5. No refund will be issued after the maximum days listed for the last bracket. In the above example, a student would not get a refund if he withdraws at any time after 60 days into the term.
  6. To be very clear: Days refers to Calendar Days, NOT business days.
  7. Click Add a bracket to create more brackets, or use the trash can to delete an unnecessary bracket.
  8. When you’re done, click Save.

The Refund Policy is now available to be attached to tuition schedules and student accounts.

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