Financial Aid - Federal Refund Policy
What happens if I cannot complete the semester and I received an award of federal aid?
The Department of Education issued the final regulations governing the return of Title IV funds when a student withdraws completely from a semester and was a recipient of federal financial aid. The burden is shared between the school and the student to return Title IV funds to the United States Department of Education. The following information will explain the process in which the Office of Financial Aid will be handling the return of funds.
Chesapeake College will be required to return federal funds within 60 days from:
- Date the student officially withdraws,
- Date the student is expelled, or
- Date the school determines the unofficial date of withdrawal occurred.
- Date the student officially/unofficially withdraws from an interim course(s) within a 15 week term and fails to start a subsequent interim session.
Return of funds can only take place if a student has attended at least one class. Should a student not properly withdraw when they have not attended at least one class, the proof of burden falls on the student to prove they never attended. Students considered “no shows” will have their financial aid awards rescinded. Students who fail to officially withdraw will have their aid prorated at the 50 percent point of the term if no date has been provided. Any requests for refunds due to improper withdrawal are separate from the regulations governing federal aid and must be made within the academic year to the Registrar. Any requests made after the academic year has ended will be denied. For more information concerning Chesapeake College’s Withdrawal Policy, please contact the Registration Office.
What is the order for the return of Title IV funds?
- Federal Perkins Loan
- Pell Grant
- Supplement Grant
- Other Title IV programs excluding Federal Work Study
What is the student's responsibility?
The student's responsibility is equal to the total amount of unearned Title IV aid minus the school's responsibility.
If the student's portion of unearned aid is a loan, no action is necessary. The terms and conditions of repayment will take care of the repayment of the loan.
If the student's portion is a grant , the student returns no more than 50% of the amount received for the enrollment period.
Grant Overpayments must be reported to the National Student Loan Data System.
If a student is determined to be responsible for returning grant funds, he/she has 30 days to pay the school the overpayment. If Chesapeake College is unable to collect, the student is reported to the NSLDS and loses eligibility for all Title IV aid unless repayment arrangements are made.
What is required if a post-withdrawal disbursement is determined?
Chesapeake College will notify the student if a post-withdrawal disbursement is determined. The student has 14 days to respond as to whether they want the funds disbursed. Post-withdrawal disbursements will to unpaid charges only. If a late response is received, Chesapeake College will decide on a case-by-case basis any future disbursements.
Case Study: New method for returning Title IV Aid.
Max is a first year student at Chesapeake College. He lives at home with his parents. He is enrolled in a 2 year Liberal Arts program. He purchased his books at the campus Bookstore. Max enrolled full-time for the spring semester and classes began on January 24th. Max used his book voucher 1 week before classes started to purchase his books.
|Academic Calendar for Spring Semester is:|
|Term Start Date:||January 24|
|Term End Date:||May 12|
|Spring Break:||March 13 - 17|
|Classes Resume:||March 20|
|Max's Program Costs
for the Semester are:
|The Aid Awarded to Max
for the spring semester is:
|Tuition and Fees:||$ 843||Federal Pell Grant:||$1562|
|Books and Supplies:||$ 200||Perkins Loan||$1200|
|Room and Board:||$ 675|
|Total Cost:||$2637||Total Aid:||$2762|
After attending classes for a few weeks, Max formally withdraws from school on March 24. The following was credited to his institutional account for spring semester on January 14.
|Student Name:||Max Jenkins ID#111-11-1111|
|Total Aid Credited to Institutional Account: $2637|
Max signed his Perkins Loan Promissory Note on January 15th. The disbursement included the following aid:
|Cash to Student:||$125|
Percentage of aid earned = 53.3%
( 56 days completed / 105 days in the spring term = .533 )
Percentage of aid unearned = 46.7%
( 100 - 53.3 = 46.7 )
Amount of aid earned by the Student = $1472
( 53.3 percent of aid x $2762 total aid disbursed = $1472 )
Amount of aid unearned = $487
( $1043 x 46.7 = $487 )
Title IV aid to be returned = $1290
( $2762 - 1472 = $1290 )
The student Max must return $803 to Federal programs
( $1290 amount of aid to be returned - $487 unearned aid = $803 )
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