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- At a certain point in the term, the student has to be withdrawn from some or all of his courses.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.
- 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
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!
- A 100% refund will automatically be offered before the term start date and no refund will be offered after the term end date.
- In the above example, assuming a 100-day term (to make the math simple to understand):
- Prorated: A withdrawn student receives a 100% refund 7 or fewer days into the term.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.
- When you’re done, click Save.
As I only have one student pulling out and I do want to charge her for books, therefore I only want to return $480.00. Is a policy necessary for this or is there a more simple way to process the refund.
Siobhan, you can issue her a credit for those books. Issuing a credit works just like adding a fee, except you give it a negative amount. This article has some details.
No she needs to pay fro the books but I need to reimburse her $480 for tuition. She has already paid for the full course. When I put in a negative balance it has nothing to apply it to.
So I guess what I am asking is how do I refund the tuition charge so I have a credit of $585 in the account, add the book charge and refund her the $480.
I am still not clear on this. going to try and call
Can you make an option to put in calendar dates for a custom refund policy? A column for a date range, and then a column for the % refund that occurs if the drop is between those dates?
How does this work for clock hour programs