CRICOS Experts / Endings

Refunds and what happens to prepaid fees

Written before the enrolment, applied without discretion.

Refund arrangements must be documented, given to the student before they commit, and applied as written. Disputes in this area are common and they are nearly always about a term the student did not understand rather than about a term that was unfair.

The circumstances that need to be covered explicitly are visa refusal, provider default, student withdrawal at various points, and course cancellation. Each has different treatment in most frameworks and a policy that addresses only one of them will fail when another occurs.

Prepaid fees generally carry protection requirements in this sector, and how fees are held before a course starts is a regulated matter rather than a commercial choice. Providers should establish the applicable rules for their jurisdiction directly.

Where a refund is due, paying it promptly matters more than the amount. A slow refund to a student who has left the country, has no local account, and has no leverage is the kind of thing that produces regulatory attention and deserves to.

The other financial arrangement worth reviewing is instalment structure. Requiring large prepayments from students who are financially stretched increases the likelihood of default and of students working excessive hours, and a payment structure aligned to study periods is both fairer and produces better retention.