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Refund of course money

A. Policy

The legislation covering refunds of course money covers situations of provider default and student default.

1. Provider default

  • Where the provider defaults refunds must be paid in accordance with the provisions of the ESOS Act 2000 and the ESOS Regulations 2001 (which is the total amount of the course money received from the student). Students must be advised of this prior to payment to the provider.
  • A provider defaults when:
      • - The course does not start on the agreed starting day, or
      - The course ceases to be provided before it is completed.
  • The course is not provided in full to the student (s. 27[1]).
  • Refunds must be made within 2 weeks after the provider default date (s. 29[3]).
  • The provider must give the student a statement that explains how the amount has been worked out (Reg 3.19[3]).

2.
Student default

  • The provider must not accept any fees from an overseas student or intending overseas student unless the provider has given to the student a copy of the refund agreement or a statement that there is no such agreement (NC 22)

3.
Student default - Written agreement between provider and student

  • Where the provider has a written agreement with the student and the agreement meets the minimum requirements of the National Code, the refund is to be determined in reference to the agreement. (s. 28)
  • The provider must not engage in conduct that is false, misleading, deceptive or otherwise unconscionable. The refund agreement between a provider and a student must:
      • - Be clearly understandable by the student
      - Given to the student prior to the student making any payment
      - Detail how and when a student should apply for a refund (NC 42)
  • Refund agreements must:
      • - Specify the refund where a student does not start on the agreed date, or withdraws before completion (NC 43.1)
      - State that "This Agreement does not remove the right to take further action under Australia's consumer protection laws" (NC 43.1)
      - Specify any other circumstances where a refund would be made (NC 43.2)
      - Explain that the student is able to pursue other legal remedies (NC 43.3)
  • Refunds must be paid within four weeks after the provider receives a written claim (NC 43.4)
  • Refunds if the provider defaults cannot be covered by a written agreement between a provider and a student but are covered by the ESOS Act2000 and ESOS Regulations 2001 (NC 44)

4.
Student default - No written agreement between provider and student or agreement is not in accordance with National Code

  • If there is no written refund agreement, or if the agreement is not in accordance with the National Code, the refund is to be prescribed by the ESOS Act 2000 and the ESOS Regulations 2001. Refunds must be paid within 4 weeks after the default date.
  • Money refunded includes the total amount of course money received from the student less the total of the amounts of money prescribed under (Reg 3.19(2))

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B. Guidelines

The key ESOS requirement is that the registered provider is responsible for both the receiving of course fees and the refunding of coursed fee. In addition the Act specifies that where a refund is given in a case of provider default, a written explanation of the breakdown of the refund must be given. Good practice dictates that this breakdown be provided in all cases where a refund is given.

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C. Obligations:

1. Monash International Pty Ltd

Must ensure its refund agreement (i.e. refund policy) is:
  • Provided to students prior to acceptance
  • Specifies in cases of student default (where a student does not start on the agreed date or withdraws before completion)
    - How and when a student should apply for a refund
    - States "this agreement does not remove the right to take further action under Australia's consumer protection legislation"
    - Specifies any other circumstances where a refund would be made
    - Explains that the student is able to pursue other legal remedies
    - Provides for payment within 4 weeks of the provider receiving the claim
Advice is given to students before making payment to Monash that
  • Refunds upon Monash default cannot be covered by the refund agreement - these matters are covered by the ESOS Act and regulations.

Procedures are in place to ensure that the ESOS obligation to refund within 4 weeks in case of student default can be met.

Ensure that refunds are made within the appropriate time frames:
  • 4 weeks for cases of student default
  • 2 weeks for cases of provider default

Provides a breakdown to students of how the refund amount is calculated
 
2. Recruitment and Marketing Division

Must ensure the university refund agreement (i.e. refund policy) is:
  • Provided to students prior to acceptance
  • Specifies in cases of student default (where a student does not start on the agreed date or withdraws before completion)
    - How and when a student should apply for a refund
    - States "this agreement does not remove the right to take further action under Australia's consumer protection legislation"
    - Specifies any other circumstances where a refund would be made
    - Explains that the student is able to pursue other legal remedies
    - Provides for payment within 4 weeks of the provider receiving the claim
Advice is given to students before making payment to Monash that
  • Refunds upon Monash default cannot be covered by the refund agreement - these matters are covered by the ESOS Act and regulations.

Procedures are in place to ensure that the ESOS obligation to refund within 4 weeks in case of student default can be met

Ensure that refunds are made within the appropriate time frames:
  • 4 weeks for cases of student default
  • 2 weeks for cases of provider default

Provides a breakdown to students of how the refund amount is calculated

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