How to claim MBA Fee refund?
In this article, we have endeavoured to guide you with the procedures for claiming the refund. We have also highlighted the AICTE rules for refund.
MBA is a postgraduate programme of two years in various disciplines of management namely: marketing, finance, HR, IT, Sustainability Development, Operations Management etc. It is, however, a very popular course of study since it unveils the arena of a plethora of job opportunities. Every year hundreds and thousands of students appear for different MBA entrance examinations to grab a berth in the reputed Business Schools of the country. Generally, the admission procedure in various B Schools begins in July/August. MBA entrance tests are held in November/ December and the final admission begins in February/ March.
But often the candidates decide not to pursue the course after taking admission in a B School or they may shift to a better-ranked institute. In that case, they can claim a refund of the money, they had deposited as admission fee to a certain institute. Here, we have endeavoured to guide you with the procedures for claiming the refund. We have also highlighted the AICTE rules for refund.
- What is AICTE?
- What is AICTE Fee refund policy?
- When does a student seek a refund?
- Procedure of seeking a refund
- B-schools cannot pressurise students
- Students must keep the acknowledgement slip of the refund application
- If the fee is not refunded within the stipulated time
- The action took up by AICTE against the B-school for failing to facilitate the refund procedure
What is AICTE?
All India Council of Technical Education is a governing body that acts under the Ministry of Human Resource Development (MHRD). It regulates and controls the functioning of all the MBA/PGDM and Technical Education in India. It has incorporated some changes in its fee refund policy for the benefits of the students since it is often found that the MBA institutes show reluctance to refund the admission fee to the candidates.
What is AICTE Fee refund policy?
AICTE Fee Refund Policy states that all MBA institutes are liable to refund the admission fee to the students after deducting their charges according to the AICTE norms if the students have applied for the refund. However, to get a refund of the fee, the students have to apply for the same to the respective institute where they had taken the admission.
When does a student seek a refund?
A student usually asks for the refund of admission fee when he decides to withdraw from a certain B School after taking admission or when he shifts to another institute with a better rank. As per AICTE rule, the MBA institute is bound to refund the money in both the situations.
Procedure of seeking a refund
To seek the refund of admission fee, the candidates must apply to the institute in the prescribed form along with all the necessary documents. It can be done online or offline, as directed by the institute. AICTE has mentioned the last date of application and refund in its rule. Here is a glimpse into the dates for claiming the refund:
| Last date of submitting an application for refund |
June 30 of the respective year |
| Time duration for receiving the refund |
7 days from the submission of application |
| Final Date of Admission |
June 30 |
What amount of money will be refunded?
AICTE has clearly pointed out in its rule (AICTE Guidelines No. - AICTE / Legal / 04(01) / 2007, April 2007) that tuition fee, development fee and other fee charged by the institute must be refunded to the students if they had applied for the same. The institute can deduct the processing charge for admission only. After making the refund, it will dismiss the admission of the respective candidate done through Common/Centralized Admission Process rounds, institute level round(s) and vacancy round(s) of admission.
According to AICTE refund rule, B-schools will refund the admission fee after deducting the cancellation or processing charges only depending upon the time factor when the request is made. Below, we have pointed out the amount of refund as varied to the time in the form of a table:
| Time when the application for refund is done |
Amount to be refunded |
|---|---|
| Application has been submitted before the start of the academic session and before the last date of admission for the waitlisted candidates |
Entire fee including the caution money and security deposit. Only Rs. 1000 is deducted as processing fee. |
| Application has been submitted after the beginning of the classes, yet before the last date of admission for the waitlisted candidate |
Only the seat cancellation charges on a pro-rata basis will be deducted. How to calculate pro-rata basis? Here 1 month is considered as 1 unit. If the candidate applies for refund within one month of the beginning of the session, the pro-rata will be total fee/12 or Rs.1000, whichever is higher |
| Application has been made after the commencement of the session as well as the last date of admission for the waitlisted candidate |
Other than the security deposit, no refund is made |
| If there is any dispute |
The Court will settle the dispute |
B-schools cannot pressurise students
Often the students came up with complaints of non co-operation from the part of the B Schools. But AICTE Directives have made it mandatory for all the B Schools to abide by the refund rules and they cannot force a student under any circumstances to carry on with their education in that particular Business School. Rather, they must co-operate with the students by providing them with the necessary details for the refund application and thereafter facilitating the process of refund so that the refund amount must reach to the student within the 7 days of application.
Students must keep the acknowledgement slip of the refund application
If the students submit the refund application form to the respective institute in person, they must make it a point that the form is acknowledged by the authorised signatory of the Business School. They must keep that acknowledgement receipt in safe custody. It is the only proof that they had applied for the refund of fees.
Again, if they send the application by Courier/Speed Post/Registered Post, they must keep a copy of the application and the receipt of the postal/ Courier with them for the record. In case of any dispute, they would require to produce these documents as proof of their application to the court.
If the fee is not refunded within the stipulated time
If the students do not get the refund within the stipulated time, they must contact the respective institute to enquire about the matter. They may also inform AICTE about the matter. This will surely facilitate the process of refund. They may also inform MHRD for the undue delay and ask for compensation. Moreover, using RTI they may seek an explanation from the institute and AICTE for the reason of delay in processing the refund.
The action took up by AICTE against the B-school for failing to facilitate the refund procedure
AICTE can ask for an explanation from the institute to know the possible reason for delay. It may also take disciplinary action against it, or debar the institute from admitting students or impose a penalty upon it.
