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- At a certain point in the term, the student has to be withdrawn from some or all of his courses.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
To set up a Refund Policy, start by going to go to Billing > Settings > Refund Policies.
- Click Add a Refund Policy.
- Give it a name, and then select the Type.
- 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.
- 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.
- 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.
- To be very clear: Days refers to Calendar Days, NOT business days.
- Click Add a bracket to create more brackets, or use the trash can to delete an unnecessary bracket.
- When you’re done, click Save.