RETURN OF TITLE IV FUNDS (FEDERAL FINANCIAL AID) POLICY
(Effective Fall 2013)
Federal regulations require all college institutions to develop a policy that determines the amount of Title IV grant or loan assistance that a Title IV aid recipient has earned as of the recipient’s withdrawal date.
At SBC, federal financial aid will be paid to students on the second Friday after the semester has begun and on the first Friday of consecutive months in the term.
In calculating the return of Title IV funds at SBC, the following 8 steps shall be taken:
- SBC shall collect information about Title IV aid the student received.
A review of the student’s award notification shall reveal information about aid disbursed and aid that could have been disbursed.
- SBC shall calculate the percentage of Title IV aid earned by the student.
The percentage of Title IV aid earned is determined by dividing the number of completed calendar days in the period of enrollment by the total number of calendar days in the period of enrollment (excluding scheduled breaks of 5 calendar days or more) rounded down to the nearest tenth of a percent.
- SBC shall calculate the amount of Title IV aid earned by the student.
The amount of Title IV aid earned is determined by multiplying the percentage of Title IV aid earned times Title IV aid disbursed plus Title IV aid that could have been disbursed during the payment period.
- SBC shall determine if the student is due a post-withdrawal disbursement OR if Title IV aid must be returned.
The amount of aid disbursed is compared to the amount of aid earned.
If the amount of aid earned is more than the amount of aid disbursed, the student is due a post-withdrawal disbursement of Title IV aid. *
*If a student is due a post-withdrawal disbursement, payment shall be made within 45 days from the time SBC determines that the student withdrew. The post-withdrawal disbursement shall first be applied to the student’s account for outstanding current period charges due to SBC. If funds remain, SBC shall notify the student in writing that s/he is due a post-withdrawal disbursement. The school shall identify the type and amount of funds and explain the option to accept or decline all of part of the disbursement. The student shall be advised that s/he must respond within 14 days of date of notice to receive payment of the post-withdrawal disbursement.
If the amount of aid earned is less than the amount of aid disbursed, Title IV aid must be returned.**
** If a student must return unearned aid to the Title IV programs, SBC shall send a notice to the student within 30 days after it has determined the student withdrew from school. The notice shall explain to the student that s/he retains eligibility for Title IV funds for a 45-day period during which one of the following should happen:
- Repayment in full
- Satisfactory repayment arrangement with SBC to repay the funds (within a 2-year period)
- Satisfactory repayment arrangement with the Department of Education
If a student fails to repay the overpayment or sign an agreement with the school within the 45 day period or fails to meet the terms of agreement signed with SBC, the college shall report the overpayment to the Department of Education NSLDS department. At that time, the student shall lose her/his eligibility for federal Title IV financial aid.
- SBC shall calculate the amount of unearned Title IV aid due from the school.
SBC shall calculate the actual institutional charges (tuition, fees, books, room and board) for the payment period. The institutional refund is calculated by multiplying the amount of institutional charges times the percentage of Title IV aid unearned. This amount is compared to the amount of Title IV aid that must be returned and the lesser amount is refunded to the Title IV aid programs.
- SBC shall determine the Return of Title IV Funds by the school.
SBC shall return the unearned aid for which it is responsible by repaying funds to the following sources, in order, up to the total net amount disbursed from each source: Federal Pell Grant, Federal SEOG, Iraq Afghanistan Service Grant.
- SBC shall calculate the initial amount of unearned Title IV aid due from the student.
To determine the initial amount of unearned title IV aid due from the student, SBC shall subtract the amount of Title IV aid due from the school from the amount of Title IV aid to be returned.
- SBC shall determine the Return of Title IV Funds by the student.
If the initial amount of unearned Title IV aid due from the student is greater than zero, the student must return unearned aid for which s/he is responsible by repaying funds to the following sources, in order, up to the total net amount disbursed from each source, after subtracting the amount the school will return: Federal Pell Grant, Federal SEOG, and Iraq Afghanistan Service Grant. Amounts to be returned by students to grants are reduced by 50%. A student does not have to repay a grant overpayment of $50 or less.
For a student who was awarded Title IV financial aid, SBC shall calculate the percentage of Title IV aid earned through the 60% point in an enrollment period. After the 60% point of the enrollment period, the student has earned 100% of Title IV financial aid awarded.
How the withdrawal date is determined:
The withdrawal date for calculating refunds/return of Title IV funds shall be determined as follows:
- the date the student began the withdrawal process or officially notified the college of intent to withdraw (in writing or orally) – see note below on programs offered in modules to determine withdrawal date;
- the last date of documented attendance for a student who unofficially withdraws or leaves without notifying the college (SBC does not have a policy for an approved leave of absence);
- documented date of student’s last attendance at academically-related
- Examples of academic attendance or attendance at an academically-related activity include:
- Physical class attendance where there is direct interaction between instructor and student;
- Submission of an academic assignment;
- Examination, interactive tutorial, or computer-assisted instruction;
- Study group assigned by school;
- Participation in on-line discussion about academic matters;
- Initiation of contact with instructor to ask question about academic subject.
- if student didn’t notify due to circumstances beyond the student’s control, the date related to that circumstance;
- if student rescinded (in writing) a withdrawal notice and later withdraws from all classes, the date the student initially began the withdrawal process unless the school documents a later date based on the student’s attendance at an academically-related event.
- A program offered in modules is defined by the U.S. Department of Education as a course or courses in a program that do not span the entire length of payment period of period of enrollment. A student is considered to be a withdrawal if he/she does not complete all days scheduled to complete within the payment period or term. A student is not considered a withdrawal if he/she provides written confirmation of intent to attend a future module in the same period of enrollment and the written confirmation is provided at the time of withdrawal. The student may change the return date in writing but it must be provided prior to the original return date. Also, the return date for the future module must begin within 45 calendar days of the student’s withdrawal date.
Office to contact to withdraw from classes:
The designated sites students must contact when they intend to withdraw from all classes are the Academic Counselor’s and/or Career Counselor’s office at the Fort Yates campus.
Exceptions to Return of Title IV Funds Policy:
Any exceptions to this policy shall be based upon extenuating circumstances and must be approved by the financial aid director. The college shall, upon application by eligible students, grant waivers to the refund policy and refund 100% of tuition and fees for students who withdraw or drop classes because they are called to active military duty.
SBC INSTITUTIONAL REFUND POLICY
(No Show and Official/Unofficial Withdrawals)
Effective Fall 2014
SBC shall use the last day of the third week of each semester or the 3rd held class session for classes that meet once a week as the census date for determining student enrollment for the fall and spring terms. For the summer term, the census date shall be the 6th scheduled class day after classes begin.
A student who does not attend any class prior to the census date shall be considered a “no show” and a 100% tuition refund will be issued for the classes not attended. The student will be billed a “no show” fee of $10.00 per course, a $25.00 registration fee, and the total cost of purchases made at the SBC Bookstore. Students may return books (no later than mid-term) if the books have not been written in or if the books are still enclosed in the shrink wrap in which they were shipped.
If a student attends any class, s/he will be considered to be enrolled in all courses registered in during that term. Tuition will only be refunded if the student withdraws from a course(s) during the first 3 weeks of the fall or spring semesters or during the first 6 class days of the summer term based on the refund schedule listed below:
During Fall and Spring terms the refund shall be calculated as follows:
- 100% refund will be issued the first week of classes,
- 80% refund will be issued the second week of classes, or
- 60% refund will be issued the third week of classes
- 0% refund issued after the third week of classes.
During the Summer term the refund shall be calculated as follows:
- 100% refund will be issued the first two days of classes,
- 80% refund will be issued the third and fourth day of classes, or
- 60% refund will be issued the fifth and sixth day of classes
- 0% refund issued after the sixth day of classes.
In the programs offered in modules (Energy Technician, Wind Turbine, and Accelerated Business Administration), 100% of tuition will be refunded if the student officially withdraws from the class prior to the start of the class. If a student attends class during the first week in any of the modules, no tuition will be refunded for that module.
The above policy applies to ALL courses regardless of when they actually begin and also applies to students who do not officially withdraw from all their classes.