Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change frequently. For advice specific to your situation, consult a licensed attorney in your area.
When educational institutions fail to deliver what they promised - whether that's quality instruction, job placement, or simply the courses you enrolled in - you may be entitled to a refund. Understanding your rights as a student consumer can help you recover thousands in tuition. The U.S. Department of Education provides official guidance on student rights and federal education programs.
Federal Protections: Schools receiving federal financial aid must follow specific refund policies. For-profit schools are subject to additional regulations and disclosure requirements.
Types of Education Disputes
College and University Issues
- Courses cancelled without refund
- Program discontinued mid-enrollment
- Promised services not delivered
- Misleading graduation or career statistics
- Housing or meal plan disputes
Trade and Vocational Schools
- False job placement claims
- Unqualified instructors
- Equipment or facilities not as advertised
- Credential not recognized by employers
- School closure before completion
Online Courses and Programs
- Course content not as described
- No instructor support as promised
- Technical issues preventing access
- Subscription auto-renewed without consent
Tutoring and Test Prep
- Score improvement guarantees not honored
- Unqualified tutors
- Sessions cancelled without refund
- Different service than described
Refund Policies and Your Rights
Federal Financial Aid Rules
Schools receiving federal aid must:
- Have published refund policy
- Provide "Return of Title IV Funds" calculations
- Refund unearned tuition if you withdraw
- Follow specific timing rules
State Regulations
Many states have additional rules:
- California: Strict for-profit school regulations
- New York: Detailed refund calculation requirements
- Texas: Career school specific rules
- Check your state education department
Read Before Signing: Schools must provide refund policies before enrollment. Request the policy in writing and understand your rights before paying.
Grounds for Refund
Withdrawal/Cancellation
- Within cancellation period (often 3-7 days)
- Before classes start
- Early in term (prorated refund)
- Medical or family emergency
School's Breach
- Course cancelled by school
- Program eliminated
- Accreditation lost
- Promised services not provided
- Material misrepresentation
School Closure
- Closed school discharge for federal loans
- State tuition recovery funds
- Teach-out agreements
Disputing Educational Charges
Step 1: Review Documentation
- Enrollment agreement/contract
- Catalog and course descriptions
- Marketing materials and promises
- Refund policy
- Emails and communications
Step 2: Contact the School
- Start with student accounts/bursar
- Document your request
- Cite specific policy provisions
- Get response in writing
Step 3: Escalate Internally
- Student ombudsman (if available)
- Dean of students
- President's office
- Board of trustees
Step 4: External Complaints
- Accrediting agency: For quality issues
- State education department: Licensing violations
- Department of Education: Federal aid issues
- State AG: Consumer protection
- FTC: Deceptive practices
Step 5: Credit Card Dispute
If you paid by credit card:
- Dispute charge within 60 days
- Claim services not provided as described
- Provide documentation of breach
For-Profit School Issues
Common Problems
- Inflated job placement rates
- Misleading salary expectations
- Credits that don't transfer
- Accreditation not valued by employers
- Aggressive recruitment tactics
Special Remedies
- Borrower Defense: Loan discharge for fraud
- Closed School Discharge: If school closes
- State refund programs: Some states have recovery funds
Student Loan Discharge Options
Borrower Defense to Repayment
If school misled you:
- Apply through Federal Student Aid
- Document school's misrepresentations
- Can result in loan cancellation
- May get refund of payments made
Closed School Discharge
- School closed while enrolled or within 180 days
- Didn't complete program elsewhere
- Federal loans discharged
Documentation to Keep
- All marketing materials and ads
- Enrollment paperwork
- Course catalogs
- Financial aid documents
- Communications with school
- Evidence of what school promised vs. delivered
- Witness statements from other students
Demand Letter Strategy
What to Include
- Enrollment details and amount paid
- Specific breach or misrepresentation
- What was promised vs. delivered
- Applicable refund policy
- Specific refund amount demanded
- Deadline to respond
- Mention of regulatory complaints