RETURN OF TITLE IV FUNDS
WITHDRAWAL FROM SCHOOL REFUND POLICY
Students who must leave the University prior to the end of the
semester should follow the University guidelines for withdrawing from school. An
Official Withdrawal Form must be obtained from the Counseling Center, completed,
signed by the respective offices and submitted to the Registrar’s Office before
a student is considered officially withdrawn. Students who stop attending all of
their classes but fail to complete the withdrawal process are considered as
unofficially withdrawn. The U.S. Department of Education has established
guidelines for institutions to follow for students who withdraw (officially or
unofficially). The policy listed below applies to students who officially and
unofficially withdraw from the University.
Federal student aid recipients who
begin attending classes during a semester, who cease attending or performing
academic activities prior to the end of the semester, and never complete an
Official Withdrawal Form are considered by the federal government to have
Unofficially Withdrawn. The University will consider the Unofficial Withdrawal
date to be the midpoint of the semester (unless documentation exists of an
earlier date of academic activity by the student).
When a federal financial
aid recipient withdraws (officially or unofficially) after attending at least
the first class day, the University will return, and the financial aid recipient
will be required to repay a prorated portion of funds received based upon a
federally required calculation (see Return of Title IV Funds section below). The
Student Financial Aid Office is required to calculate the amount of federal
Title IV financial aid students have earned and the amount that is unearned. The
unearned portion of Title IV financial aid must be returned to the appropriate
financial aid programs according to federal and institutional guidelines.
Students who withdraw on or before the 60% point of the semester will have a
percentage of their financial aid calculated as earned and unearned on a
pro-rata basis. If a student is enroll beyond the 60% of the semester, all
financial aid is considered earned.
Example: You withdraw on the
25th day of the semester and
there are 116 days in the semester, your earned and unearned financial aid would
be calculated as follows:
| Calendar days completed in the period of enrollment | 25 days |
| Total calendar days in the period of enrollment | 116 days = 21.6% |
(excluding scheduled breaks of 5 days or more)
If University
records show a federal student aid recipient never attended a class and/or never
performed an academically related activity for a semester or term, then the
recipient never established eligibility for any aid funds that may have been
disbursed for that semester. In addition, any student aid recipient who
withdraws, drops all classes prior to the first day of class for a semester did
not establish eligibility for any aid funds that may have been disbursed for
that semester or term. In either case, the student aid recipient must repay the
entire amount of aid disbursed for that semester or term.
If a student did
not receive any federal student aid but did receive other types of aid funds,
and subsequently officially withdraws, refunds or repayments will be based upon
the University’s refund policy.
Repayment of the Unearned Amount is
calculated as follows:
School will return to the appropriate financial aid
program(s) the lesser of:
total amount of unearned aid or
institutional charges (tuition, fees, room and board) multiplied by unearned percent
Student will return:
remaining balance of unearned aid to the appropriate program(s) plus any amount the school returned that exceeds the amount of institutional charges that are credited back to the withdrawing student based upon the Institutional Refund Policy calculation.
The Unearned Amount of aid must be returned to the applicable Title IV aid programs in the following order:
Funds will be refunded, to the applicable programs, in the
following order:
Unsubsidized Federal Direct Loan
Subsidized Federal Direct Loan
Federal Perkins Loan
Federal Direct PLUS Loan
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant
Other Title IV Aid Programs
If the student is required to repay funds through the federal grant program, the student will be required to return no more than 50% of the federal grant amount that was originally received. If a balance is due the University, a bill will be sent to the student’s permanent home address and will be due upon receipt.
With the exception of any amount
owed to the school, students and/or parents who are required to return a portion
of all of their loan proceeds, are allowed to repay the unearned amount
according to the terms of the loan.
Students who are withdrawn from the
University must complete and Exit Counseling. The Exit Counseling can be
completed on-line at www.ncat.edu, click on financial aid, click on Direct Loan
and click on Exit Counseling.
Note: The information contained in this
section is subject to change, without notice, in order to comply with federal,
state, or university requirements.