RETURN OF TITLE IV FUNDS

The 1992 reauthorization of Higher Education Act of 1965 imposed a federally mandated refund policy on colleges and universities for students who receive Title IV financial aid. Institutions were required to use various refund calculations to determine the amount that the institution earned while the student was in attendance. The calculations varied according to the student’s status, first-time student or continuing student. There was considerable confusion in the financial aid community with regard to the amount that the institution would be eligible to retain and that a student would be required to “repay” if he or she withdrew from a semester. The 1998 reauthorization of the Higher Education Act of 1964 simplified this calculation by replacing the current calculations with a single pro rata formula. It also shifted the focus from institution to the student. The student is only eligible for the amount that is earned at the time he or she ceases attendance. It no longer has a relationship to the student’s institutional charges.

EFFECTIVE FOR PERIODS OF ENROLLMENT BEGINNING ON OR AFTER 8/28/2000

The policy shall apply to all students who withdraw, drop out or are expelled form CALDWELL COLLEGE and receive financial aid from Title IV funds:

1)

a) The term “Title IV Funds” refers to the Federal financial aid programs authorized under the Higher Education Act of 1965 (as amended ) and includes the following programs:

Unsubsidized FFEL loans, subsidized FFEL loans, Federal Pell Grants, Federal SEOG.

b) A student’s withdrawal date is:

i) The date the student began the institution’s withdrawal process or officially notified the institution of intent to withdraw; or

ii) The midpoint of the period for a student who leaves unofficially without notifying the institution; or

iii) The student’s last date of attendance at a documented academically related activity.

2)

Refunds on all institutional charges, including tuition and fees, will be calculated using the Caldwell College refund policy published in the Catalog and Class Schedule and will be calculated and determined by Student Accounts.

3)

Title IV aid is earned in a prorated manner on a per diem basis up to and including the 60% point in the semester. 60% is approximately 9.6 weeks of a 16-week semester or 4.8 weeks of an 8-week summer session. Title IV aid and all other aid is viewed as 100% earned after that point in time.

a) The percentage of Title IV aid earned shall be calculated as follows:

Number of days completed by student = Percent of term completed
Total number of days in term*

The percent of term completed shall be the percentage of Title IV aid earned by the student.

*The total number of calendar days in a term of enrollment shall exclude any scheduled breaks of more than five days.

b) The percentage of Title IV aid unearned (i/e., to be returned to the appropriate aid program) shall be 100% minus the percent earned.

c) Unearned aid shall be returned first from the student’s account calculated as follows:

Total institutional charges (x) percent of unearned aid = amount returned to programs.

Unearned Title IV aid shall be returned to the following programs in the following order:

1. Unsubsidized Federal Stafford Loan
2. Subsidized Federal Stafford Loan
3. Federal Pell Grant
4. Federal SEOG Grant
5. Other Title IV grant programs

Exception: no program can receive a refund if the student did not receive aid from that program.

d) When the total amount of unearned aid is greater than the amount returned from the student’s account, the student is responsible for returning unearned aid to the appropriate programs(s) as follows:

1. Unsubsidized Federal Stafford Loan*
2. Subsidized Federal Stafford Loan*
3. Federal Pell Grant**
4. Federal SEOG Grant**
5. Other Title IV grant programs**

*Loan amounts are returned in accordance with the terms of the promissory note signed by the student.
**Amounts to be returned by the student to federal grant programs will receive a 50% discount.