Fee collection

Career colleges are private businesses that collect fees from students to cover the costs of running the business. The rules for collecting fees are outlined in Ontario Regulation 415/06 of the Ontario Career Colleges Act, 2005.

To collect fees from students, career colleges must:

  • disclose all fees for their vocational programs to the Superintendent of Career Colleges
  • only charge or collect compulsory or optional program fees that are equal to or less than what is approved by the superintendent
  • wait for the publication of fees on ServiceOntario before charging or collecting fees from students in Canadian dollars
  • issue receipts and keep a record of the transaction for every payment made by a student

Before a career college and a student sign a contract, the career college can charge a service fee that is either 20% of the total program fees or $500, whichever is lower. This fee may be used to process applications or give admissions tests and must be included in the enrolment contract.

Fee types

Compulsory fees

Compulsory fees are directly related to a vocational program. These include (but are not limited to) fees for:

  • tuition
  • books and supplies
  • administrative charges
  • field trips
  • professional examinations
  • work placements

Optional fees

Optional fees are also directly related to a vocational program, but not every student may be required to pay them. These include (but are not limited to) fees for:

  • rewriting examinations
  • additional lessons or class time
  • graduation ceremonies
  • duplicate transcripts or credentials

Non-program fees

Non-program fees are fees that are not directly related to a vocational program. These could include fees for:

  • parking
  • lockers
  • not sufficient funds (NSF) cheques
  • meal plans
  • airport pickups

Refund policy

The Ontario Career Colleges Act, 2005 requires career colleges to create a fee refund policy and adopt specific provisions from the Act into that policy. All career college refund policies must cover compulsory and optional fees. The law does not require career colleges to include non-program fees in their refund policies.

Every career college must include its fee refund policy in the contract signed by a vocational student. When signing the contract, students acknowledge that they have received a copy of the refund policy, as required by legislation.

If a student leaves the program, it’s important for the career college to be transparent and clear so that students understand how a refund will be determined and calculated.

The ministry will confirm that a career college’s refund policy includes the required provisions and meets the requirements of the Ontario Career Colleges Act, 2005 upon the career college’s registration and inspection.

Mandatory provisions for refund policies

Find information on important sections of O. Reg 415 related to refunds, including references for the exact language required in a career college’s refund policy.

Midpoint evaluations of students’ progress

Career colleges must review a student's progress before they reach the mid-point of the program so they can make informed decisions about their studies.

If a student’s program is designed to take less than 12 months to complete, the student is entitled to at least 1 evaluation before half of the scheduled hours have taken place.

A student is entitled to additional progress evaluations if the program is expected to run longer than 12 months. A career college must divide the instruction hours into specific study periods and conduct an evaluation before half of the instruction hours are completed within the initial 12-month period and halfway through any subsequent study periods.

Every midpoint evaluation must be provided in writing to the student.

There may be other, more appropriate opportunities to review a student’s progress before reaching the midpoint, and career colleges are encouraged to take advantage of these opportunities to keep students informed about their academic status.

Read section 12 (O.Reg 415/06) for guidance on mid-point evaluations.

Full refunds

A refund policy must explain when a student is entitled to a full refund.

Every refund policy must provide full refunds when a contract is cancelled for any of the following reasons:

  • A student changes their mind during the cooling off period (within 2 days of signing a contract).
  • The career college, while still operating, discontinues the program before students can complete their studies.
  • A program’s approval is revoked by the Superintendent of Career Colleges.
  • The career college collects any fees for the program before it is registered or before the program is approved under the Ontario Career Colleges Act, 2005.
  • The career college collects more than the service fee before signing a contract.
  • Students are expelled from the career college for reasons or in a manner that contradicts the expulsion policy or sexual violence policy.
  • The career college does not provide the required progress evaluation in writing before reaching the midpoint of the program.
  • A total of more than 10% of the program is taught by unqualified instructors.
  • The contract does not include all the mandatory terms required under the Ontario Career Colleges Act, 2005.

Students are also entitled to a full refund if a career college makes untrue statements to convince them to enroll in the program and the statements are considered a fundamental breach of the contract. Examples include:

  • false or misleading statements, images or videos
  • a guarantee of admission to or completion of the program
  • guarantees of employment after completing the program
  • a statement that guarantees the right to enter Canada or receive a visa or work permit

Use exact language from section 25 (O.Reg 415/06) in the career college’s refund policy.

Full refunds minus the service fee

A student is entitled to a refund of the fees they have paid for a program, minus the service fee (20% of the program fees or $500, whichever is lower) if they:

  • withdraw from the program before it begins but more than two days after signing a contract
  • do not meet the program’s admission requirements when the program starts
  • have a contract cancelled by the career college because they did not attend the first 14 days
  • are an international student unable to obtain a visa to remain in the program past the midpoint of the program or the midpoint of the first 12-month period

Use exact language from section 26 (O.Reg 415/06) in the career college’s refund policy.

Partial refunds

A student is entitled to a partial refund of the program fees paid if they withdraw or are expelled from a program after it begins but before the midpoint evaluation. This depends on how much of the program has been delivered by the career college.

In most cases, the career college can keep the service fee, plus the fees for the portion of the training that was provided before the student stopped their studies.

However, if the student did not attend the first 14 days, the career college can cancel the contract in writing. If the career college cancels the contract, they must refund the student the program fees paid minus only the service fee, without deducting an amount for training delivered.

Use exact language from section 27 (O.Reg 415/06) in the career college’s refund policy.

Refunds for compulsory fees

If a career college charges higher fees than what is published on ServiceOntario, a student is entitled to a full refund of the portion of the fee that was not published.

Use exact language from section 28 (O.Reg 415/06) in the career college’s refund policy.

Refunds for books and equipment

If a student withdraws or is expelled from a program, the retail cost of books or equipment must be refunded if the student returns the books or equipment within 10 days.

Books or equipment must be unopened when they are returned, or in the same state as when they were supplied by the career college.

Use exact language from section 31 (O.Reg 415/06) in the career college’s refund policy.

Notice of withdrawal or expulsion

A student may withdraw from a program or cancel a contract for any reason and does not have to explain their decision when providing notice. However, they must deliver a written notice of withdrawal or cancellation to be eligible for a refund.

A notice of withdrawal or cancellation must be delivered directly to the career college (not the instructor) and sent by either:

  • e-mail
  • fax
  • courier
  • registered mail

Students should keep a copy of the notice and any delivery confirmations.

A notice of withdrawal or cancellation delivered by registered mail is considered received by a career college 3 business days after the day it was mailed.

Similarly, career colleges must notify students in writing if they are expelled from their program. A reason for the expulsion must be included in the notice of expulsion and must align with the institution’s expulsion policy.

International students

If an international student is required to be in Canada for their studies but cannot obtain a student visa, a career college must consider written notice of that situation as a withdrawal. Refunds for that student must be processed according to the specific international student refund provision.

Learn about the international student refund provision.

Partial refund calculation

As described in section 24(2) of O.Reg 415/06, career colleges can calculate refunds by determining what is defined as an “earned fee” in the regulation. An earned fee is the amount of all the fees paid by the student that is proportional to the number of training hours delivered when the student withdraws or is expelled.

When a program is presented to the superintendent for approval, the length of the program is represented as hours of instruction. Therefore, career colleges can calculate earned fees based on the hours of instruction that have been delivered when a student withdraws or is expelled.

Example:

A student paid in-full for a program that costs $6,000 and includes 100 hours of instruction. The student withdraws after the career college delivers 20 hours of instruction.

The refund then equals $4,300 because:

$6,000 (amount paid) minus $500 (service fee) minus $1200 (earned fee for 20 hrs) equals $4,300.

Career colleges should track student participation to:

  • identify the training hours delivered
  • determine the earned fee for the refund calculation

It may be more difficult to track a student’s activity if there is no technology in place to do so (for example, online asynchronous or independent study). In this case, a career college can refer to the subjects and modules approved for the program to determine the closest approximate number of hours delivered to the student and calculate the earned fee.

Career colleges may consider including details of their calculation methods in the refund policies to limit confusion or dispute with students. The ministry recommends confirming with legal counsel that a career college’s calculation method does not conflict with the Ontario Regulation 415/06 of the Ontario Career Colleges Act, 2005.

Use exact language from section 27 (O.Reg 415/06) in the career college’s partial refund policy.

Timing and currency of refunds

A refund must be issued to the student in Canadian currency within 30 days after the day the student:

  • delivers a written notice to the career college to withdraw from the program
  • is given a written notice of expulsion by the career college
  • delivers a written request to the career college for a refund of an unpublished fee

Use exact language from section 30 and 33 (O.Reg 415/06) in the career college’s refund policy.

International student refund provision

Refund policies apply to international students in the same way as domestic students. They can cancel a contract with a career college or withdraw from a program for any reason.

International student who cannot get a student visa to enter Canada are also entitled to a refund. If a career college receives a written notice stating that a student cannot obtain a student visa before the midpoint of the program or the midpoint of the first 12-month period, it is considered the same as a notice of withdrawal.

The international student is entitled to a full refund minus only the service fee. This rule applies even if instruction hours were delivered prior to the notice of withdrawal.

Use exact language from section  32 (O.Reg 415/06) in the career college’s refund policy.

School closures

A career college must complete the training for all enrolled students before closing. If a career college closes unexpectedly, the superintendent will try to arrange for students to complete their programs elsewhere, or provide partial refunds.

Read Career college closures for more information.