BROWNSON TECHINCAL SCHOOL - Laserfiche WebLink

Home Browse Search

financial aid program funds. If the student is eligible for a loan guaranteed reinsured by the state or federal government and the student defaults on the loan, the federal or state government or the loan guarantee agency can take action against the student, including applying any income tax refund to which the person is entitled to reduce the balance owed on the loan; and the student may not be eligible for any other federal financial assistance for education at a different school or for government housing assistance until the loan is repaid. FEDERAL REFUND REQUIREMENTS VS. STATE REFUND REQUIREMENTS In addition to the federal refund requirements for Title IV recipients, the institution is required to calculate a 60% pro-rata refund for all students who withdraw, regardless of whether or not the student received Title IV funds, as per California regulations, section 94870 of the California Private Postsecondary Education Act of 2009. However, the federal formula for return of Title IV funds may result in a larger refund than the state refund policy, in which case, the institution and the student must return the sum that result in the larger of the two calculations to the appropriate Title IV program. Therefore, the student may, after Title IV funds are returned, owe a balance to the institution. DATE OF DETERMINATION The student's withdrawal date is the last date of attendance as determined by the institution from its attendance records. The withdrawal date for a student who does not return from an approved leave of absence is set retroactively to the last date of attendance, as determined by the institution's attendance records. The date of determination will be the date the school first becomes aware that the student will not continue. The school has 45 days from the date of determination to issue a refund. NOTE: A student who is on an approved leave of absence retains in -school status for purposes of Title IV loans. However, the student should be aware that if he or she does not return from a leave of absence that some or all of the grace period of the loan could have been used up, as the withdrawal date is set retroactively. RETURN OF TITLE IV FUNDS POLICY Federal regulations state that the amount of a Title IV refund is based on the percentage of Title IV funds earned by the student at the time of withdrawal. In order to determine whether Title IV funds must be returned, the school must calculate the following: I . To determine the percentage of the payment period completed, the number of days* attended in the payment period is divided by the total days* in the payment period. *Days=calendar days for purposes ofthisformula, and therefore include weekends and holidays. Only scheduled breaks of5 days or more, and approved leave of absences are excluded. 2. The net amount of Title IV funds disbursed, and that could have been disbursed for the payment period is multiplied by the percentage of the payment period completed. The result is the amount of earned Title IV aid. 3. The earned aid is subtracted from the aid that was actually disbursed to, or on behalf of the student. 4. The institution will return the lesser of the total earned aid or the unearned institutional charges for the payment period. 5. Unearned aid is allocated back to the Title IV programs in the following order as specified by law: 1. Unsubsidized Federal Stafford Loan Program 2. Subsidized Federal Stafford Loan Program 3. Federal Perkins Loan Program 4. Federal PLUS Program 5. Federal Pell Grant Program 6. Federal Seog Program 7. Other assistance awarded under this title for which return of funds is required. 19-