Return of Federal Aid

Federal regulations describe how Title IV funds are handled when a recipient of those funds ceases to be enrolled (100% withdrawal) prior to the end of a payment period or period of enrollment. When a student cancels the enrollment agreement, the cancellation date will be determined by the postmark on written notification, or the date said information is delivered to the school’s Financial Aid Office in person.  Should any aid be disbursed prior to the start of class, all funds will be returned in full to the appropriate agency.

The Financial Aid Department administers the Return to Title IV Funds Calculation (R2T4).  A student withdrawal can include those students who officially or unofficially withdraw.  Examples would be 1) a student who did not return from an approved or unapproved Leave of Absence, 2) those who were terminated from enrollment, 3) those who withdrew from the program and notified the school, or 4) the school was notified by a second party due to circumstances beyond the student’s control.  All R2T4 calculations are based on the students’ last date of attendance as provided by the student’s attendance records.  The R2T4 determines the amount of aid that was earned.  The R2T4 is based on the payment period.  After the student has completed more than 60% of the payment period, no refund is due.  The R2T4 is completed for all withdrawals to determine if the student is approved for a post withdrawal disbursement.

 The calculation for the percent of completion of the payment period is as follows:

 The school will determine the actual date the student started the payment period and the last date of attendance and will figure out the scheduled clock hours within that period of time.  The number of clock hours the student was scheduled to complete within that payment period is divided by the total number of clock hours in that payment period to determine the percentage completed.  Days a student was on a Leave of Absence are not included in this calculation.  Students who owe an overpayment of Pell grants as a result of withdrawal from the program, initially will retain their eligibility for Title IV funding for forty-five (45) days of the earlier of 1) date the school sends the student notification of the over award 2) the date the school was required to notify the student of overpayment.  Within thirty (30) days of determining that the student’s withdrawal created a repayment of all or part of the Pell Grant, the school must notify the student that she/he must repay the overpayment or make satisfactory arrangements to repay.  The student will be notified of overpayment of Title IV funds and that the students’ eligibility for additional Title IV aid will cease if the student fails to take a positive action by the forty fifth (45^th) day following notification from the school.  The student will have the options of paying the overpayment in full or arranging a repayment agreement with the Department of Education.  If the student fails to take action to repay during the forty-five (45) days allotted, the school will report this to NSLDS.

Any student who withdraws officially or unofficially will be made aware of the possible consequences of withdrawing.  For financial aid students, repayment on Federal Loans begins 6 months from their last date of attendance.  Students who took a full 180-day Leave of Absence (LOA) and who did not return from the LOA will go into immediate repayment.

The R2T4 does not dictate the school’s refund policy and is not based on the student’s education charges, only the scheduled time within the payment period in which the student drops.  This policy is separate from the schools Institutional Refund Policy.  All students who utilize Title IV funding will have the R2T4 calculation completed prior to calculating the Institutional Refund Policy.  A student may owe funds for unpaid charges to the school to cover education charges.  If the school is required to return federal funds, the school will return Federal Aid disbursed that was credited to the student’s account for the payment period in which the student withdrew.  The school will refund any unearned Title IV aid due within forty-five (45) days of the date of determination, which is no later than fourteen (14) days from the last date of attendance.

Title IV Refunds are allocated in the following order:

1. Unsubsidized Direct Stafford Loans
2. Subsidized Direct Stafford Loans
3. Direct PLUS Loans
4. Federal Pell Grants for which a return of funds is required.

If the school is allowed a post withdrawal disbursement, the school will advise the student or parent they have fourteen (14) calendar days from the date the school sent notification to accept a post withdrawal disbursement.  A student who qualifies for a post withdrawal disbursement must meet the current award year requirements and time frames for late disbursements.  A post withdrawal for Pell Grants of which the student is awarded will be disbursed within forty-five (45) days of the date the school determined the student withdrew.  Post withdrawal loan funds a student accepts will be made within one-hundred and eighty (180) days from the date the school determined the student withdrew.

If the school’s Institutional Refund Calculation indicates the student still owes the school, the debt to the school must be paid in full before the release of transcripts (unless your state law indicated otherwise).

The school’s responsibility regarding the Return to Title IV funds are as follows:

• To provide students with the information contained in the R2T4 Policy.
• Identifying students who have withdrawn and will be affected by the R2T4 Policy.
• Return all unearned Title IV Funds in compliance with The Department of Education requirements.

The student’s responsibilities regarding the Return to Title IV funds are as follows:

• Return unearned Title IV Funds that were disbursed to the student where in the student was deemed ineligible, based on the R2T4 calculation.
• When possible, the student should notify the school in writing of official withdrawal.
• If the student cancels their decision to withdraw, the student must notify the school in writing within three business days of the date of the original withdrawal.
• All requests to withdraw or cancel a request to withdraw must be delivered to the school’s financial aid office.
• Student borrowers of the Direct Stafford Loans are required to attend or complete online an Exit Interview before leaving school.

Students receiving financial aid have the responsibility to follow the Standard College withdrawal procedures as outlined in the student handbook. The Higher Education Act requires Standard College to calculate a Return of Title IV funds on all federal financial aid students who withdraw (officially or unofficially) from the Program.

A schedule is used to determine the percentage of the semester/term the student attended based on the withdrawal date/last date of attendance. The percentage of the semester/term the student attended is calculated as follows:

Number of days in attendance
Number of days in semester/term

The number of days counted includes all calendar days in the semester including weekends and holidays but excludes college breaks of five or more days. The percentage of the semester the student attended is used to calculate the amount of the student’s earned versus unearned federal aid funds. The unearned portion of federal aid funds received must be returned to the appropriate aid program in accordance with the order of return as mandated by law. The order of return is: Federal Unsubsidized Stafford Student Loan, Federal Subsidized Stafford Student Loan, Federal PLUS Loan, Federal Pell Grant, Federal ACG Grant, Federal SEOG Grant, other Title IV aid.

Standard College is responsible for returning the lesser of unearned Title IV aid or unearned institutional charges. Unearned institutional charges are based on the percentage of the semester the student did not attend. Standard College is responsible for its return of funds first, followed by the student’s return of funds.

The student is responsible for returning:

Amount of unearned Title IV Aid
– Amount of aid school returns
Amount Student Returns

Standard College must return its portion of unearned Title IV aid (loan and grant) to the appropriate federal program within 45 days from the date the school determines that the student has withdrawn. If the amount the student returns includes a federal loan program, the student is responsible for repayment of the loan in accordance with the terms of the loan program. If the amount the student returns includes grant aid, the student must repay 50% of the grant money received, rather than 100%.

The student must return unearned grant aid to the college within 45 days from the date of notification. Failure by the student to return or make arrangements to return unearned grant aid to the college within 45 days will result in the student being reported to the U.S. Department of Education (USDOE). The student will be considered in an overpayment status, and will not be eligible for additional aid at any post-secondary institution participating in Title IV Aid programs. Students who are reported to USDOE in an Overpayment Status should contact the USDOE to make payment arrangements to repay the necessary grant funds.

Students who stop attending Standard College may not receive further financial aid disbursements, may lose some or all the aid that has already been disbursed to their account, may be responsible for repayment of unpaid charges, and may be considered in overpayment status with USDOE. Students who stop attending all classes without officially withdrawing from Standard College will be subject to a Return of Title IV Funds calculation at the end of the semester, based on their last date of attendance determined by Financial Aid Services.

The student shall be considered withdrawn if the student fails to return from leave of absence and the Federal Return of Title IV funds policy shall take effect. Withdrawal date is the last date of academic attendance prior to leave of absence.

A student who withdraws from the program may be required to return unearned Title IV financial aid funds and may still owe Standard College for institutional charges.