US Federal Student Aid

Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive.

If a recipient of Title IV loan funds withdraws from a school after beginning attendance, the amount of Title IV 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, he or she is eligible to receive a Post-withdrawal disbursement of the earned aid that was not received.

Return of Title IV Funds (R2T4) Policy

This policy applies specifically to students receiving Title IV Funds and who withdraw voluntarily or who are required to withdraw. The term “Title IV Funds” refers to the Federal financial aid programs authorized under the Higher Education Act of 1965 (as amended). At Burman University this includes the following programs:

• Unsubsidized Federal Direct Loan (Direct Loan)

• Subsidized Federal Direct Loan (Direct Loan)

• Federal Parent PLUS Loan

Policy

All students must follow the institutional policy for Dropping/Withdrawing From A Course and/or Complete Withdrawal as listed in the Academic Calendar 2013-2014, page 24, http://www.cauc.ca/sites/default/files/05_AC_2014_Regulations.pdf.

For the purpose of calculation a return of Title IV funds, the student’s withdrawal date is the date the student begins the withdrawal process either on the Registrar Services form or by an official verbal notification to Registrar Services of the intent to withdraw.

If the student provides no official notification of drop or withdrawal, the official date is determined by the Registrar in consultation with the student’s teacher(s) regarding last academically-related activity.

If the date cannot be specifically identified through the last academically-related activity method and is prior to the midpoint of the term, the official withdrawal date is the midpoint date of the current term. If the student was verifiably enrolled at the midpoint date and subsequently unofficially withdraws, the official withdrawal date is the end date of the current term.

If the student must drop/withdraw because of exceptional circumstance, e.g., medical, the student or his/her representative must notify the Registrar who will indicate a withdrawal date correlated to the date the student ceased academic attendance because of the exceptional circumstance.

If a student who has received Title IV funding withdraws from all courses prior to completing over 60% of a semester, he/she may be required to repay a portion of the federal financial aid received for that term. A pro rata schedule is used to determine the amount of federal student aid funds a student has earned at the time of withdrawal.

The return of funds is based upon the concept that students earn their financial aid in proportion to the amount of time in which they are enrolled. Under this reasoning, a student who withdraws in the second week of classes has earned less of his/her financial aid than a student who withdraws in the seventh week. Title IV aid is earned in a prorated manner on a per diem basis up to the 60% point in the term. Title IV aid is viewed as 100% earned once you have completed more than 60% of the term.

The exception to the prorated return of Title IV aid is the calculation for the first-time, first-year borrower. If the student withdraws prior to completing the first 30 days of the program, no Direct Loan funds will be disbursed to the student.

According to the federal regulations, when the University must return unearned Title IV aid, the funds are allocated to the aid programs in the following order:

• Unsubsidized Federal Direct Loan (Direct Loan)

• Subsidized Federal Direct Loan (Direct Loan)

• Federal Parent PLUS Loan

The student is responsible for the return of refunded Title IV funds for which the student was determined to be ineligible (to the Title IV loan program) within 45 days after notice from the University of an overpayment.

Failure to return funds as required will result in the loss of eligibility for federal student aid.

Post-withdrawal disbursement of Title IV Loan funds

For a student who withdraws after the 60% point-in-time, even though a return is not required, a school may have to complete a Return calculation in order to determine whether the student is eligible for a Post-withdrawal disbursement.

Within 30 days of the date of a school’s determination that a student has withdrawn, the University will notify a student, or parent for a parent PLUS loan, in writing of:

 the type and amount of the loan funds available and will advise the student, or parent for a parent PLUS loan, that they may accept or decline all or a portion of the funds; and

 of the obligation to repay the loan funds should they choose to accept all or a portion of the funds; and

 if necessary, request permission to make a Post-withdrawal disbursement of loan funds for other than institutional charges; and

 if necessary, request permission to credit loans funds to a student’s account to cover unpaid institutional charges.

If the student, or parent for a parent PLUS loan, does not wish to accept some or all of the loan funds that the institution wishes to credit to the student’s account, the institution will not disburse those funds. The student, or parent for a parent PLUS loan, will be advised in this correspondence that they have thirty days from the date of notification to respond to the University.

Failure to respond, or a late response may result in a return of post-withdrawal funds to the lender. If authorization from a student (or parent for a PLUS loan) is received after the deadline, the school is not obligated to make a Post-withdrawal disbursement of loan funds.

If a student or parent submits a timely response accepting all or a portion of a Post-withdrawal disbursement, per the student’s or parent’s instructions, the school will disburse the loan funds within 180 days of the date of the institution’s determination that the student withdrew.