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Student Fee Protection Rules 2022
- Authority
- Commencement
- Interpretation
- Application of these Rules
- Provider withdrawal and refund policies
- Voluntary closure or Course cessation
- Course Closure Event
- Student Fee Protection Mechanism(s) for Providers
- Student Fee Protection Mechanism(s) for Agents
- Public Notification of approved Student Fee Protection Mechanism
- NZQA approval of Suppliers
- Obligations of Suppliers
- Obligations of Providers
- Obligations of Agents
- Failure of Provider or Agent to comply with Rules
- Withdrawal of Mechanism by Supplier
- Failure of Supplier to comply with Rules
- Revocation
- Savings
- Appendix A
- Appendix B
- Appendix C
- Appendix D
Appendix D: Criteria in addition to criteria in Appendix B that a Mechanism must meet
Rule 8.1 & 11.1; clauses 1.8 & 1.9 of Appendix B; Appendix C
For the purposes of rule 8.1 the following are the criteria that a Mechanism must meet.
Criterion 1
Every Student on every Course who has paid Student Fees must be covered.
A Provider may have more than one Mechanism in order to cover all Students and Courses it provides.
Criterion 2
A Supplier must operate the Mechanism.
Criterion 3
Student Fees received by or on behalf of a Provider before the end of the Refund Period must be paid direct into a standard trust or protected by a static trust (under Mechanism 1 in Appendix B) of the Provider’s Supplier.
Where Student Fees are paid to the Provider by or on behalf of the Student (for example, over the counter) those fees must be deposited directly into the standard trust account of the Provider’s Supplier by close of business on the following working day unless they are protected by a static trust.
Criterion 4
Where the fees are paid by the Student after the end of the relevant Refund Period they are to be protected through one of the Mechanisms.
Where the Mechanism chosen is a standard trust (under Mechanism 1 in Appendix B), and the Student Fees are paid to the Provider by or on behalf of the Student (for example, over the counter), those fees must be deposited directly into the standard trust account by close of business on the following working day.
Criterion 5
All Student withdrawals during and (if the withdrawal and refund policies allow a refund) after the Refund Period, all voluntary closures and Course cessations by a Provider, and all Course Closure Events must be covered.
Criterion 6
Accommodation expenses deposited into the standard trust account of the Provider’s Supplier may be paid by the Supplier to an accommodation supplier up to a month in advance.
Living expenses may be paid by the Supplier to the Student as arranged between the Provider and Student.
Criteria 7-10 apply to standard trusts.
Criterion 7
Where a Student is on a Course of three months or longer, the Provider is entitled to be paid by the Supplier after the expiry of the relevant Refund Period:
-
- 20% of the Tuition Fees, or $3,000, whichever is the lesser, provided the Student has agreed; and
- thereafter Tuition Fees drawn down in arrears of tuition delivered except for Conditions Dependent Courses for which the draw down is provided for in rule 13.8(c).
Criterion 8
Where an international Student is on a Course of less than three months, and a Refund Period applies to that Course, Providers are entitled to be paid by the Supplier after the expiry of the relevant Refund Period:
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- 20% of the Tuition Fees, or $3,000, whichever is the lesser, provided the Student has agreed; and
- thereafter Tuition Fees drawn down in arrears of tuition delivered except for Conditions Dependent Courses for which the draw down is provided for in rule 13.8(c).
Criterion 9
Where a domestic Student is on a Course of more than two days but less than three months, Providers are entitled to be paid by the Supplier the following amounts:
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- 20% of the Tuition Fees, or $3,000, whichever is the lesser, provided the Student has agreed, after the following periods:
- two days of Course attendance in respect of Courses up to and including four weeks and six days:
- five days of Course attendance in respect of Courses of five weeks or more, but less than three months; and
- thereafter Tuition Fees drawn down in arrears of tuition delivered except for Conditions Dependent Courses for which the draw down is provided for in rule 13.8(c).
- 20% of the Tuition Fees, or $3,000, whichever is the lesser, provided the Student has agreed, after the following periods:
Criterion 10
For Courses of two days or less, Providers are entitled to be paid by the Supplier the full amount of Tuition Fees of a Student any time after the date the Course starts for that Student.
Criterion 11
Students must have the ability to choose between Alternative Providers (where available) or receiving a Pro Rata Refund in a voluntary closure or Course cessation by a Provider, or in a Course Closure Event.
Criterion 12
Where a Student chooses an Alternative Provider, the monies held by the existing Supplier on behalf of the Student must be paid to the Alternative Provider’s Supplier.
Where the Alternative Provider is not a registered private training establishment, the monies must be paid to the Alternative Provider.
Criterion 13
Where a Student chooses a Pro Rata Refund, the Mechanism must specify the following order of payment:
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- the Ministry of Social Development (Studylink) or Inland Revenue in the case of student loans:
- directly to the Student, or to any other party nominated by the Student.
Criterion 14
The refund payment process must begin immediately upon a voluntary closure or Course cessation by a Provider, a Student withdrawal, or a Course Closure Event.
Unless NZQA permits a longer period, payment must be made:
-
- in accordance with rule 6.1 for voluntary closures and Course cessations by a Provider;
- within five working days of the date of the notification of the withdrawal, for Student withdrawals; and
- within 15 working days of the NZQA notice given under rule 7.1, for a Course Closure Event.
Criterion 15
Where Students transfer to an Alternative Provider that is a registered private training establishment:
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- the Alternative Provider’s Supplier may not provide a Mechanism that is less favourable than the Mechanism used for the Alternative Provider’s existing Students;
- the transferring Student must be treated, and be given refund and withdrawal entitlements, as would be given to a Student commencing a new Course of the same length as that which the Student has transferred from (and for the avoidance of doubt this includes the Student having the benefit of the relevant Refund Period and being able to withdraw in that Refund Period and receive the relevant entitlements);
- Student Fees must be transferred to the Alternative Provider; and
- the lump sum draw down provided for in paragraph (a) of either Criterion 7, Criterion 8, or Criterion 9 above is not payable to the Alternative Provider.
Criterion 16
Accommodation and living expenses must be separately identified within the Mechanism.