Sec. 1603.3604.  INTEREST ON REFUND.  (a)  If tuition is not refunded within the period required by Section 1603.3603, the private postsecondary school shall pay interest on the amount of the refund for the period beginning the first day after the date the refund period expires and ending the day preceding the date the refund is made.
(b)  If tuition is refunded to a lending institution, the interest shall be paid to that institution and applied against the student's loan.
(c)  The commissioner of education shall annually set the interest rate at a rate sufficient to deter a school from retaining money paid by a student.
(d)  The department may exempt a school from the payment of interest if the school makes a good faith effort to refund the tuition but is unable to locate the student.  The school shall provide to the department on request documentation of the effort to locate the student.
Added by Acts 2021, 87th Leg., R.S., Ch. 663 (H.B. 1560), Sec. 3.29, eff. September 1, 2021.