Business ProfileforSpa Tech Institute

When students terminate their enrollment in a program, the school is required to follow the federally approved refund policy which is based on Scheduled Hours completed at the time of termination. We do have a provision for appealing the default calculation if there are documented extenuating circumstances that fall within the Title IV allowed reasons for making an exception in which case the school will make a prorated refund plus the cost of any books, supplies or subscriptions that they have already used. The information on appealing the charges is clearly stated in the paperwork that is sent to the student after the calculations have been completed. If you would like assistance on submitting an appeal, please contact the school.

However, if a student withdraws, due to deciding they want to do something other than what they committed to, the school is entitled to retain the funds that were designed to cover the expenses that the school incurs for that commitment. The school reserves a seat in the class that could have been filled by another student which is how the federal government determined the refund policy. If the seat is vacated part way through the program, the resources were already allocated by the school which is why the school is entitled to the funds for tuition as well as the cost of books and supplies. It's similar in all colleges and schools. 

Here is the refund policy from the contract:

INSTITUTIONAL REFUND POLICY

For applicants who cancel enrollment or students who withdraw from enrollment a fair and equitable settlement will apply.  The following policy will apply to all terminations for any reason, by either party, including student decision, course or program cancellation, or school closure.
Any monies due the applicant or students shall be refunded within 45 days of official cancellation or withdrawal. Official cancellation or withdrawal shall occur on the earlier of the dates that:

An applicant is not accepted by the school. The applicant shall be entitled to a refund of all monies paid.
A student (or legal guardian) cancels his/her enrollment in writing within three business days of signing the enrollment agreement. In this case all monies collected by the school shall be refunded, regardless of whether or not the student has actually started classes.
A student cancels his/her enrollment after three business days of signing the contract but prior to starting classes. In these cases, he/she shall be entitled to a refund of all monies paid to the school less the non-refundable application fee in the amount of $50.
A student notifies the institution of his/her withdrawal in writing.
A student on an approved leave of absence notifies the school that he/she will not be returning. The date of withdrawal shall be the earlier of the date of expiration of the leave of absence or the date the student notifies the institution that the student will not be returning.
A student is expelled by the school. (Unofficial withdrawals will be determined by the institution by monitoring attendance at least every 30 days.)
In type 2, 3, 4 or 5, official cancellations or withdrawals, the cancellation date will be determined by the postmark on the written notification, or the date said notification is delivered to the school administrator or owner in person.
For students who enroll and begin classes but withdraw prior to course completion (after three business days of signing the contract), the following schedule of tuition earned by the school applies.  All refunds are based on actual hours:
            PERCENT OF SCHEDULED TIME                                            TOTAL TUITION SCHOOL
   ENROLLED TO TOTAL COURSE/PROGRAM                                     SHALL RECEIVE/RETAIN
                        0.01%to 04.9%                                                           20%
                          5% to 09.9%                                                              30%
                        10%to 14.9%                                                              40%
                        15%to 24.9%                                                              45%
                        25%to 49.9%                                                              70%
                        50% and over                                                                100%
This refund policy applies to tuition and fees charged in the enrollment agreement. Other miscellaneous charges the student may have incurred at the institution (IE: extra kit materials, books, products, unreturned school property, etc.) will be calculated separately at the time of withdrawal. All fees are identified in the catalog and in this enrollment agreement.
All refunds will be calculated based on the students last date of attendance. Any monies due a student who withdraws shall be refunded within 45 days of a determination that a student has withdrawn, whether officially or unofficially .In the case of disabling illness or injury, death in the student's immediate family or other documented mitigating circumstances, a reasonable and fair refund settlement will be made. If permanently closed or no longer offering instruction after a student has enrolled, the school will provide a pro rata refund of tuition to the student OR provide course completion through a pre-arranged teach out agreement with another institution. If the course is canceled subsequent to a student's enrollment, the school will either provide a full refund of all monies paid or completion of the course at a later time.
If the course is cancelled after students have enrolled and instruction has begun, the school:
Shall provide a pro rata refund for all students transferring to another school based on the hours accepted by the receiving school

OR Provide completion of the course

OR Participate in a Teach-Out Agreement

OR Provide a full refund of all monies paid.