Students Demanding Refunds After Campus Closures Will Seriously Hurt Some Schools

Legal Insurrection ^ | March 15, 2020 | Mike LaChance

[CheshireTheCat]

“Every residential college and university in America relies on that auxiliary revenue stream. It is baked into the budget”

Colleges and universities with massive endowments will be fine, but schools which are already experiencing financial problems could be in serious trouble.

[olivia3boys]

I don’t think there would be refunds for tuition offered if the college is able to move the education to online.

[Albion Wilde]

Long past time to burst the academia bubble. Higher ed costs have soared well ahead of inflation for years. Most of the money is being spent on “woke” expenditures, like “diversity” czars making twice as much as long-tenured professors of distinction, segregated facilities so that POCs won’t have to associate with whites, etc.

[bert]

The affected students will be given a voucher to enroll in the fall semester

[blackdog]

Most students attend state universities. The state keeps what it gets. This experience will teach students more than what’s in their course content. Good stuff to know the nanny state in its true form.

[Hillarys Gate Cult]

The way the gubmint works they will weasel out of any refunds by creating a “Student Inactivity Fee.”

[Thud]

Trial lawyers smell blood here. There will be class action lawsuits against colleges which fail to refund unused dorm and meal plan fees. This is simple contract law. The colleges promised to provide residential and food services in exchange for pre-payment of fees for those, then refused to provide the services.

Given how nasty colleges are to conservative students, it won't break my heart if some of them go bankrupt over this.

[VeniVidiVici]

Whether they offer it now or wait until the courts explain to them that they are going to give a refund

At $30K a semester it might pay for a few weeks next year. I have to give her credit though; the kid does not yet have student loans.

[qwerty1234]

>>Most students attend state universities. The state keeps what it gets.

Not always true - I have 2 kids in a state college and they have already announced their *will* be pro-rated refunds for food and housing. Learning is moving online so I wouldn’t expect that there would be any refunds there.

[Whatever Works]

I wonder how many will choose to remain online after this event? How many parents will look at exactly what they are teaching junior?

[Svartalfiar]

Colleges typically have endowments which they really, really, really don’t like to dip into.

But they certainly could.

Not to mention, endowments aren't just a savings account at the local bank. Endowments are generally tied up in land or a lot of investment funds, so they aren't exactly liquid assets. And with the stock market tanked, they probably don't want to sell off what they can at such a low.

[Svartalfiar]

force majeure Defense, during catastrophes everybody sucks it up, stop whining. Mind you, the universities are a particularly perverse example

Force Majeure is used to break a contract. It doesn't mean that the entity using it is free from any and all obligations; in fact, cases like this would be most likely to require a refund. Invoking force majeure gets the college out of having to provide an education - but they're still responsible for refunding the $$ they were paid in advance for those credit-hours. You don't get to keep the $$$ just because.

It's basically a reset back to how everything was before the contract was signed.

[Codeflier]

Food for thought. Thanks.

[Svartalfiar]

My neighbor pays for her two Grand daughters college tuition. She called the school about a refund and was told a decision had not been made on refunds.

The school would get back to everyone in the next two weeks.

My neighbor thinks she is SOL.

It depends. If the school finished the semester, then there's no reason to refund tuition - the kids are getting their credit hours. Whether it's online the rest of the year, or campi reopen in 2-3 weeks. If the school issues the appropriate class credit hours, then no one can really complain. Online may not be the "full college" experience, but all you're tuition really pays for is the credit hours earned.

Room and board, though, is an entirely different matter (as well as gym/sports/activity fees). Usually spring break is factored in (school's open, you can choose to go home or not), but any shutdowns / student kick-outs, the schools had better be refunding a prorated amount, and I bet most will because they know it'll much cheaper than the army of lawyers that'll descend on them if they don't.

[ReaganGeneration2]

Dead on