The law specifies how Aultman College of Nursing and Health Sciences must determine the amount of Title IV program assistance that a student earned if he withdraws from school. The Title IV programs that are covered by this law, and that are available at Aultman College, are:
· Federal Pell grants
· Academic Competitiveness Grants
· Unsubsidized Stafford Loans
· Subsidized Stafford Loans
· Parent PLUS Loans
A student withdrawing from Aultman College during the semester must see the Student Advisor and complete the appropriate withdrawal forms (see Withdrawal Policy). When a student withdraws from Aultman College, the withdrawal date used to determine the refund date is the date the student began the College’s withdrawal process, although the College reserves the right to use the last date of attendance at an academically related activity. Academically related activities include attending class, attending a lecture or clinical, or attending an examination at Aultman College.
When a student withdraws during the payment period (semester), the amount of Title IV program assistance the student has earned up to that point is determined by a specific formula. If the student received (or Aultman College of his parent received on the student’s behalf) less assistance than the amount earned, the student may be able to receive those additional funds. If the student received more assistance than he earned, the excess funds must be returned by the school and/or the student.
The student must be fully eligible to receive federal funds prior to his withdrawal in order for Title IV aid to be considered as aid that could have been disbursed and, consequently, included in the Return to Title IV calculation. The criteria for eligibility are:
1. The Student Aid Report (or ISIR) must have been processed with an official EFC by the date of withdrawal,
2. The student must have been making Satisfactory Academic Progress,
3. For any Stafford or PLUS Loan, the loan must have been certified by the date of withdrawal,
4. For any Academic Competitiveness Grant, the student must have been enrolled at least half-time and meet all additional ACG criteria.
The amount of assistance that a student has earned is determined on a pro-rata basis. For example, if he completed 30% of the payment period, the student earns 30% of the assistance he was originally scheduled to receive. Once he has completed more than 60% of the payment period or the period of enrollment, he earns all the assistance that he was scheduled to receive for that period.
If the student did not receive all of the funds that he earned, the student may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loans funds, Aultman College must get his permission before it can disburse them. A student may choose to decline some or all of the loan funds so that he doesn’t incur additional debt. Aultman College may automatically use all or a portion of a student’s post-withdrawal disbursement of grant funds for tuition, and room and board charges (as contracted with the College). The College needs the student’s permission to use the post-withdrawal grant disbursement for all other school charges. If the student does not give his permission, he will be offered the funds directly. However, it is in the student’s best interest to allow the school to keep the funds to reduce his debt at the school.
A post-withdrawal disbursement to the student’s account to pay charges must be disbursed as soon as possible but no later than 180 days after the school determined is the withdrawal date. A post-withdrawal disbursement made directly to the student must be disbursed as soon as possible, but no later than 45 days for grants and 180 days for loan funds.
There are some Title IV funds that a student may have been scheduled to receive that cannot be disbursed to him once he withdraws because of other eligibility requirements. For example, a student may have been scheduled to receive a Stafford Student Loan but if he has not signed a promissory note, the funds cannot be disbursed to him after he withdraws.
If a student receives (or Aultman College or his parent receive on his behalf) excess Title IV program funds that must be returned, Aultman College must return a portion of the excess equal to the lesser of:
1. the student’s institutional charges multiplied by the unearned percentage of his funds, or
2. the entire amount of excess funds.
The College must return this amount even if it didn’t keep this amount of the student’s Title IV program funds. The College must return the unearned aid for which it is responsible by repaying funds to the following sources, in this order, up to the total net amount dispersed from each source:
1. Unsubsidized Stafford Student Loan
2. Subsidized Stafford Student Loan
3. Parent PLUS Loan
4. Pell Grant
5. Academic Competitiveness Grant
These unearned Title IV funds must be returned no later than 45 days after the date the school determined the student withdrew.
If Aultman College is not required to return all of the excess funds, the student must return the remaining amount. Any loan funds that the student must return, he (or his parent for a PLUS Loan) repays in accordance with the terms of the promissory note. That is, the student makes scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that a student must return is called an overpayment. The maximum amount of a grant overpayment that a student must repay is half of the grant funds he received or was scheduled to receive. The student must make arrangements with the College or the Department of Education to return the unearned funds. Within 30 days of the date the College determined the student withdrew, the College is required to notify the student of his obligation to repay grant funds. The student is required to repay the grant funds within 45 days of the earlier (1) the date the College sends the student notice of the overpayment, or (2) the date the school was required to notify the student of the overpayment (in event of a late notification).
The requirements for the return of Title IV program funds when a student withdraws are separate from any refund policy that the College has. Therefore, a student may still owe funds to the College to cover unpaid institutional charges. The College may also charge a student for any Title IV program funds that the College was required to return. A copy of the College’s refund policy is published in the Student Handbook and can also be obtained from the College’s Financial Aid and Billing Office. If a student wishes to withdraw, they should meet with the Student Advisor and complete the appropriate withdrawal forms (see Withdrawal Policy).
For more information about Title IV program funds contact the Federal Student Aid Information Center at 1-800-433-3243. Student Aid information is also available on the web at www.studentaid.ed.gov.
