New Zealand Qualifications Authority
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For Education Organisations

What are my obligations when a student withdraws?

This section answers these questions

  • What are my obligations when a student withdraws?
  • Do I need to maintain a trust account for withdrawals and refunds?

All students are entitled (*) to a refund if they withdraw from a course, and if:

  • the course is of three months duration or more
  • the withdrawal occurs up to the end of the eighth day of the start of a course.

The private training establishment (PTE) must refund an amount equal to the fees paid less a deduction of the lesser of ten percent of the fees paid or $500.

International students are also entitled (**) to a refund if they withdraw from a course, and:

  • the course is less than three months in duration
  • the withdrawal occurs up to the end of the second day of the start of a course of up to four weeks and six days duration. The PTE must pay an amount equal to the fees paid less a deduction of 50 percent. However, if two days constitutes the full amount of tuition paid for by the student, the PTE may retain 100 percent of the payment
  • the withdrawal occurs up to the end of the fifth day of the start of a course of five weeks or more but less than three months duration. In this case, the PTE must pay an amount equal to the fees paid less a deduction of 25 percent.

These are minimum requirements. Students are entitled to a refund in line with a PTE's own refund policy. This may allow for amounts greater than the above. In special circumstances a PTE may also elect to make a refund that is greater than specified in its refund policy.


(*) as s.236(A)(2) of the Education Act 1989

(**) NZQA policy per s. 236(d)(iv) of the Education Act 1989