- limit on advance deposit
(1)The enrollment agreement entered into between a person and a career school for the purpose of obtaining instruction or training shall contain a schedule for the refund of tuition, deposits and fees when the person does not complete the course or program of instruction or training which was the subject of the contract. No action or suit may be brought by a career school or its assigns if the enrollment agreement does not contain this refund schedule. This provision shall not limit the career school’s right to defend any action or suit brought by any person on a contract which does not contain such a schedule.
(2)The refund schedule required by subsection (1) of this section shall be established by the Higher Education Coordinating Commission in consultation with the advisory committee appointed under ORS 345.330 (Advisory committee). In establishing the refund schedule, the commission shall consider:
(a)The reasonable, obligated and fixed costs of the career school, including but not limited to rent, personnel and nonreturnable supplies.
(b)The method of instruction.
(c)The reasonable value of services performed prior to cancellation of the course or program.
(3)The commission may establish varying refund schedules when the difference in services performed necessitates separate schedules.
(4)Nothing in this section is intended to prevent a career school from requiring an advance deposit of tuition on behalf of the person intending to enroll in a course or program offered by or through the career school. However, the advance deposit shall be limited to 20 percent of the total tuition and fees, excluding federal and state financial aid, unless the commission determines by rule that larger advance deposits are appropriate.
(5)A school shall be considered in default of the enrollment agreement when a course or program is discontinued or canceled or the school closes prior to completion of contracted services. When a school is in default, student tuition may be refunded on a pro rata basis if the commission determines that the school has made provision for students enrolled at the time of default to complete a comparable program at another institution at no additional tuition cost to the student beyond the original contract with the defaulting school. If the school does not make such provision, a total refund of all tuition and fees shall be made to the students. [1965 c.409 §2; 1967 c.67 §16; 1975 c.478 §12; 1989 c.333 §10; 1993 c.742 §78; 1995 c.343 §9; 2012 c.104 §30]
Atty. Gen. Opinions
State's authority to regulate and license foreign correspondence schools, (1972) Vol 36, p 271; authority to regulate private degree-granting vocational schools, (1978) Vol 38, p 1765