Unfortunately not the first time I heard of flying schools doing this.
Doing what? Holding students to a standard?
it spells it out pretty clearly, you don’t make the standard your trainings will be terminated.
Rightfully so.
Now this:
The Student does not receive any financial refund
I take a very dim view off
Apart from some small withholding for administrative costs there should be no reason for not refunding unused monies.