Return to Title IV and Refund Policy
Return to Title IV Funds and Refund Policy
If a recipient of an FSA grant or loan funds cancels or is dismissed from school after beginning attendance, the amount of FSA grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, s/he is eligible to receive a post dismissal/cancellation disbursement of the earned aid that was not received.
The law specifies how your school must determine the amount of Federal Student Aid (FSA) assistance that you earn if you cancel or are dismissed from school. The FSA programs that are covered by this law are: Federal Pell Grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), Federal Perkins Loans and in some cases, certain state grant aid (LEAP/SLEAP).
When you cancel during your payment period or period of enrollment (your school can define these for you and tell you which one applies), the amount of FSA program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.
The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a post dismissal/cancellation disbursement. If the disbursement includes loan funds, you may choose to decline the loan funds so that you do not incur additional debt. Your school may automatically use all or a portion of your post-dismissal/cancellation disbursement (including loan funds, if you accept them) for tuition, fees, and room and board charges (as contracted with the school). For all other school charges, the school needs your permission to use the post-dismissal/cancellation disbursement. If you do not give your permission (which some schools ask for when you enroll), you will be offered the funds. It may be in your best interest, however, to allow the school to keep the funds to reduce your debt at the school.
There are some FSA funds that you were scheduled to receive that you cannot earn once you cancel because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before dismissal/cancellation, you will not earn any FFEL or Direct loan funds that you would have received had you remained enrolled past the 30th day. If you receive (or your school or parent receive on your behalf) excess FSA program funds that must be returned, your school must return a portion of the excess equal to the lesser of
- Your institutional charges multiplied by the unearned percentage of your funds; or
- the entire amount of excess funds.
The school must return this amount even if it did not keep this amount of your FSA program funds.
If your school is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent for a PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time. Any amount of unearned grant funds that you must return is called an overpayment. The amount of a grant overpayment that you must repay is half of the unearned amount. You must make arrangements with your school or the Department of Education to return the unearned grant funds.
The requirements for FSA program funds when you cancel or are dismissed are separate from any refund policy that your school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any FSA program funds that the school was required to return.
Order of Return
Stanbridge University is authorized to return any excess funds after applying them to current outstanding Cost of Attendance (COA) charges. A copy of the Institutional R2T4 work sheet performed on your behalf is available through the office upon student request.
In accordance with Federal regulations, when Title IV, HEA financial aid is involved, the calculated amount of the R2T4 Funds is allocated in the following order:
- Unsubsidized Direct Stafford loans (other than PLUS loans)
- Subsidized Direct Stafford loans
- Direct PLUS loans
- Federal Pell Grants for which a Return is required
- Federal Supplemental Educational Opportunity Grant
- Iraq and Afghanistan Service Grant for which a Return is required
- Other Title IV assistance
- State Tuition Assistance Grants (if applicable)
- Private and institutional aid
- The Student
Earned AID
Title IV, HEA aid is earned in a prorated manner on a per diem basis (clock hours) up to the 60% point in the semester. Title IV, HEA aid is viewed as 100% earned after that point in time. A copy of the worksheet used for this calculation can be requested from the financial aid director.
Post-Withdraw
If you did not receive all of the funds that you have earned, you may be due a post-withdraw disbursement. Stanbridge University may use a portion or all of your post-withdraw disbursement for tuition and fees (as contracted with the school). For all other school charges, the university needs your permission to use the post-withdraw disbursement. If you do not give permission, you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.
The post-withdrawal disbursement must be applied to outstanding institutional charges before being paid directly to the student. Both grants and loans must be disbursed within 180 days of the date of determination in a post-withdrawal disbursement.
Institution Responsibilities
Stanbridge University’s responsibilities in regard to Title IV, HEA funds follow:
- providing students information with information in this policy;
- identifying students who are affected by this policy and completing the return of Title IV funds calculation for those students; and
- returning any Title IV, HEA funds due to the correct Title IV programs.
The institution is not always required to return all of the excess funds; there are situations once the R2T4 calculations have been completed in which the student must return the unearned aid.
Overpayment of Title IV, HEA Funds
Any amount of unearned grant funds that a student must return is called an overpayment. The amount of grant overpayment that you must repay is half of the grant funds you received. You must make arrangements with the school or Department of Education to return the amount of unearned grant funds.
Student Responsibilities in regard to return of Title IV, HEA funds
Returning to the Title IV, HEA programs any funds that were dispersed to the student in which the student was determined to be ineligible for via the R2T4 calculation.
Any notification of withdraw should be in writing and addressed to the appropriate institutional official.
A student may rescind his or her notification of intent to withdraw. Submissions of intent to rescind a withdraw notice must be filed in writing. Either these notifications, to withdraw or rescind to withdraw must be made to the Registrar.
Refund vs. Return to Title IV
The requirements for the Title IV, HEA program funds when you withdraw are separate from any refund policy that Stanbridge University may have to return to you due to a cash credit balance. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Stanbridge University may also charge you for any Title IV, HEA program funds that they were required to return on your behalf.
Refund
A full refund of funds paid (if any) minus an application fee not to exceed $150 (if paid) will be issued if cancelled based on the “Student ’s Right to Cancel” guidelines. No refund will be issued if withdrawn or dismissed when more than 60% of the scheduled days in the current payment period of the program through the last day of attendance has been completed. A pro rata refund (if due) will be issued for the unfinished portion of the program and for the refundable books and ATI Kits if withdrawn or dismissed when 60% percent or less of the scheduled days in the current payment period of the program through the last day of attendance has been completed.
The Date of Determination is the date that the institution determines the student has withdrawn from the program and is no longer than 14 days after the Last Date of Attendance. The Last Date of Attendance will be the basis for calculating the amount of the refund. The Date of Determination starts the clock for timely refunds of funds, within 45 days after the Date of Determination. Federal financial aid funds will be returned according to the Department of Education Guidelines. Private lending companies will be refunded before funds (if any) are returned to student. Please see the catalog for the full withdrawal and refund policies.
If you do not already know what the university’s refund policy is, you may ask your Financial Planner for a copy.
Return to Title IV questions: If you have questions regarding Title IV, HEA program funds after visiting with your financial aid director, you may call the Federal Student Aid Information Center at 1-800-4-fedaid (800-433-3243). TTY users may call 800-730-8913. Information is also available on student aid on the web www.studentaid.ed.gov.
Cancellation and Refund Polices are also provided in the Enrollment Agreement.
Refer to the respective sections in this catalog on the policies for Withdrawal, Leave of Absence and Dismissal.