Potencial del Sector Industrial de la Alcachofa

1. If the aid already disbursed equals the earned aid, no further action is required.

2. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program.

Total Disbursed Aid – Earned Aid = Unearned Aid to be Returned

3. If the aid already disbursed is less than the earned aid, the Financial Aid Director will calculate a Post-Withdrawal Disbursement.

Earned Aid:

Title IV aid is earned in a prorated manner on a per diem basis (calendar days) up to the 60% point in the semester. Title IV aid is viewed as 100% earned after that point in time. A copy of the worksheet used for this calculation can be requested from the Financial Aid Director.

In accordance with federal regulations, Title IV Aid will be returned in the following order:

1. Federal Direct Unsubsidized Loan 2. Federal Direct Subsidized Loan 3. Federal Perkins Loan

4. Federal Direct PLUS Loan 5. Federal Pell Grant

6. Federal SEOG 7. Federal TEACH Grant

8. Iraq Afghanistan Service Grant

Unreturned portions of loans must be repaid by the borrower

(student/parent) as outlined in the terms of the borrower’s promissory note. The College will notify the borrower and the lender of any returned portions of loans. The student’s grace period for loan repayments for Federal Unsubsidized and Subsidized Direct Loans will begin on the day of the withdrawal from the College. The student should contact the lender if the student has questions regarding their grace period or repayment status.

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Institutional and student responsibility in regard to the Federal Return of Title IV Funds Policy

The Financial Aid Director’s responsibilities in regard to the Return of Title IV funds policy include:

1. Providing each student with the information given in this policy at the time of her withdrawal;

2. Identifying students affected by this policy and completing the Return of Title IV Funds calculation;

3. Informing the student of the result of the Return of Title IV Funds calculation and any balance owed to the College as a result of a required return of funds;

4. Returning any unearned Title IV aid that is due to the Title IV programs and, if applicable, notifying the borrower’s holder of federal loan funds of the student’s withdrawal date;

5. Notifying student and/or PLUS borrower of eligibility for a Post- Withdrawal Disbursement, if applicable

The student’s responsibilities in regard to the Return of Title IV Funds Policy include:

1. Becoming familiar with the Return of Title IV Funds Policy and how withdrawing from all his or her courses effects eligibility for Title IV aid; 2. Resolving any outstanding balance owed to Judson College resulting from

a required return of unearned Title IV aid. Post-Withdrawal Disbursement

In the event a student is eligible for a post-withdrawal disbursement based on the student’s budget, awarded financial aid and Title IV funds, and R2T4

calculations, a post-withdrawal disbursement must be made only after the following conditions are met:

1. Student and parents were notified in writing of the availability of post- withdrawal disbursements by the Financial Aid Offices within one week of the completion of the R2T4 calculation.

2. Student and parents notified the Financial Aid Offices within a reasonable time indicating their acceptance of available post-withdrawal

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time for the school to process a post-withdrawal disbursement within the deadlines set by the Department of Education.

3. Student has outstanding institutional charges that are due and wants to pay those charges by applying the student’s post-withdrawal disbursement. 4. Student/parents completed all necessary paperwork related to the post-

withdrawal disbursement within a reasonable time.

5. The Financial Aid Office must track the notification and authorization to make the disbursement and meet deadlines as prescribed by the

Department of Education. The College must process Title IV aid within 120 days from the last day of the enrollment period.

The post-withdrawal disbursement must be applied to outstanding institutional charges before being paid directly to the student.

Example – for illustration purposes only Jane received the following financial aid:

Judson Achievement Grant $ 2,230.00

Federal Pell Grant $ 2,775.00

Federal SEOG $ 400.00

Federal Direct Sub Loan (net) $ 1,742.00 Federal Direct Unsub Loan (net) $ 995.00 Federal Direct PLUS loan (net) $ 3,942.00

Total $ 12,084.00

Less Institutional Charges -$ 11,945.00

Jane’s Refund $ 139.00

Jane totally withdrew on the 22nd day of a 106 day term, or 20.8%. Federal law states that she would have received or would have been eligible to receive:

Disbursed Federal Aid (100%) $ 9,854.00 Federal Earned Aid (20.8%) -$ 2,049.63 Federal Unearned Aid (79.2%) $ 7,804.37

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The Judson College Institutional Refund Policy states that Jane would have earned the following aid:

Institutional Aid Disbursed $ 2,230.00 Institutional Earned Aid (40%) -$ 892.00 Institutional Unearned Aid (60%) $ 1,338.00 Jane’s institutional charges would be adjusted based on her withdrawal date.

Updated Institutional Charges $ 4,778.00 Less Earned Institutional Aid $ 892.00

Less Earned Federal Aid $ 2,049.63

Remaining Balance $ 1,836.37

Unearned Federal Grants -$ 725.37

Remaining Balance $ 1,111.00

Based on the federal formula, Judson would return all of the Title IV loans ($6,679). Based on the federal provision that a student is not required to return more than 50% of the grant aid disbursed, Jane would not have to return any of her grant funds. She would owe Judson College $1,111.00.

If the aid had not been disbursed at the time of the student’s withdrawal, the Financial Aid Director would use the same formula to determine if the student were eligible for a post-withdrawal disbursement. If the student is eligible for a refund, the Business Office will notify the student. All refunds will be given to the student via check.