The Coronavirus Has Emptied Dorms and Dining Halls. Here’s Why Refunds for Them Are a Tricky Calculation.

The mass exodus of students from campuses in the wake of Covid-19 has put the spotlight on a revenue stream that contributes to the operations of many colleges: room and board fees.

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It’s money the students want back. Continuing their education online, away from the residence halls and meal plans they paid for, students began asking for partial refunds early on. At Drew University, for example, they petitioned for refunds. But the private New Jersey institution said it is still working out the details. Others have turned to the courts. A class-action lawsuit is pending against the Arizona Board of Regents by students at Arizona State and Northern Arizona Universities and the University of Arizona.

Some colleges initially refused but have since reversed course and decided to refund students’ money after all. Others have stood firm: Georgetown College, in Kentucky, says refunds aren’t in the offing. The institution, on its website, says the college’s costs are still the same, despite students’ absence.

Although the role room and board fees play in the balance sheets of different institutions varies, colleges of all types are concerned about the price tags attached to refunds and what the hit to that revenue source will ultimately mean. Here’s a closer look.