Institutional Financial Aid Refund Policy

 Withdrawal from the College (all classes) during any period of enrollment, whether official or unofficial, may necessitate the return of federal and state financial aid.

 Pursuant to federal regulations (CFR 668.22), a refund calculation will be performed to determine the amount, if any, of Title IV aid (Pell Grant, FSEOG) earned by the student for their attendance up to the date of withdrawal.  (See Return of Title IV Financial Aid (R2T4) Policy).

If any funds are to be returned after the return of Title IV aid, they will be calculated according to the same formula and will be used to repay state aid funds, Community Christian College funds, other private sources, and the student in proportion to the amount received from each non-federal source as long as there was no unpaid balance at the time of withdrawal.  If there was an unpaid balance, then all aid sources will be repaid before any funds are returned to the student.

     Refund calculation:

  •  Courses dropped before start date:  100%
  • Courses dropped by the end of the second week: 70%
  • Courses dropped by the end of the third week:  60%
  • Courses dropped by the end of the fourth week:  50%
  • Courses dropped by the end of the fifth week:  40%
  • There are no refunds after the end of the fifth week.

     NOTE: If prior to withdrawing, funds were released to a student because of a credit balance on the student’s account, the student may be required to repay some of the federal or state funds upon withdrawing.

"NOTICE"

"YOU MAY ASSERT AGAINST THE HOLDER OF THE PROMISSORY NOTE YOU SIGNED IN ORDER TO FINANCE THE COST OF THE EDUCATIONAL PROGRAM ALL OF THE CLAIMS AND DEFENSES THAT YOU COULD ASSERT AGAINST THIS INSTITUTION, UP TO THE AMOUNT YOU HAVE ALREADY PAID UNDER THE PROMISSORY NOTE."

     In making consumer loans to students, an institution shall also comply with the requirements of the Federal Truth in Lending Act pursuant to Title 15 of the United States Code.

Return of Title IV Financial Aid (R2T4) Policy

Title IV funds are federal student aid (FSA) funds administered by the U.S. Department of Education. They include Federal Pell Grant, Iraq Afghanistan Service Grant (IASG), Federal Supplemental Educational Opportunity Grant (FSEOG), TEACH Grant, Direct Loans (Subsidized Direct Loan, Unsubsidized Direct Loan, and Direct PLUS loan), and Perkins loan. The only ones that Community Christian College processes are the Federal Pell Grant and FSEOG Grant.  FSA funds are awarded to a student under the assumption that the student will attend the College for the entire period for which the assistance is awarded. When an FSA recipient withdraws from the College prior to the end of a payment period, a Return of Title IV (R2T4) calculation will be performed to determine the amount FSA funds earned as of the date of withdrawal.

 If the total amount of FSA funds earned is less than the amount of FSA funds disbursed to the student, the difference or unearned funds will be returned to the applicable FSA programs. However, if the total amount of FSA earned is greater than the amount disbursed to the student, the student may be eligible to receive a post withdrawal disbursement (PWD) of the earned FSA funds.

An R2T4 calculation will not be performed if an FSA recipient withdraws after completing the payment period (term) and all FSA funds have been disbursed. Students with a withdrawal date that occurs up through the completion of 60% of a payment period are eligible for a prorated portion of the FSA funds disbursed. Students with a withdrawal date that occurs after completing more than 60% of the payment period earns 100% of the FSA funds.

Determining Withdrawal Dates

 Withdrawal dates are determined in two ways, either through student-initiated withdrawal (official) or through Community Christian College administrative withdrawal (unofficial).  Student-initiated withdrawal occurs when the student notifies the College of the intent to withdraw. Administrative withdrawal occurs when the College determines that the student is no longer enrolled based on a variety of reasons, such as a student's lack of academic activity, failure to establish academic activity verification at the beginning of a new term or failure to pay tuition.

  •   Official, Student-initiated withdrawals: The withdrawal date is the date the student notifies the College of the intent to withdraw.
  •   Unofficial, Administrative withdrawals: The withdrawal date is the last date of the student’s academic activity.

Date of the university’s determination that the student withdrew

  •  Student-initiated withdrawals: The date of determination that the student withdrew is the date the student notified the College of the intent to withdraw.
  •  Administrative withdrawals: The date of determination that the student withdrew without providing notification is no later than 21 days after the withdrawal date.

Steps in the Return of Title IV funds policy

     Community Christian College will determine:

  • The total amount of Title IV aid disbursed for the quarter in which the student withdrew. A student’s Title IV aid is counted as aid disbursed in the calculation, if it has been applied to the student’s account on or before the date the student withdrew.
  • The total amount of Title IV aid disbursed plus the Title IV aid that could have been disbursed for the quarter in which the student withdrew.
  • Will calculate the percentage of Title IV aid earned as follows: the number of calendar days completed divided by the total number of calendar days in the quarter in which the student withdrew. The total number of calendar days in a quarter shall exclude any scheduled breaks of more than 5 days.
  •  Days Attended ÷ Days in Enrollment Period = Percentage Completed
  • If the calculated percentage completed exceeds 60%, then the student has earned all the Title IV aid for the enrollment period.

  Community Christian College will calculate the amount of Title IV aid earned as follows:

  •  The percentage of Title IV aid earned multiplied by the total amount of Title IV aid disbursed or that could have been disbursed for the term in which the student withdrew.
  •      Total Aid Disbursed × Percentage Completed = Earned Aid

Post-Withdrawal Disbursement

 If the FSA funds earned is greater than the amount of FSA funds disbursed to the student or on behalf of the student, the FSA funds that could have been disbursed will be treated as post withdrawal disbursement (PWD). As long as the conditions for a late disbursement are met prior to the date the student withdrew, any undisbursed FSA funds will be counted as FSA funds that could have been disbursed.

 If a PWD is due, the College will make a late disbursement of grant funds within 45 days of the date the College determined that the student withdrew. The disbursement of the loan funds will be offered to the student within 30 days of the date the College determined that the student withdrew and will make a late disbursement to the student no later than 180 days after the date the College determined that the student withdrew.

Inadvertent Over-payments

  An inadvertent over-payment occurs when the College disburses funds to a student after the student’s last date of attendance but prior to the date the College determined the student withdrew.  These inadvertent over-payments are included in the R2T4 calculation as FSA funds that could have been disbursed.

 Students who meet the required conditions for late disbursements are entitled to keep the FSA funds disbursed. If an inadvertent over-payment could be made as a late disbursement, the College will return the unearned portion within 45 days of the date the College determined the student withdrew. If an inadvertent over-payment could not be made as late disbursement, the College will return the entire amount of the FSA funds disbursed to the appropriate programs within 45 days of the date the College determined the student withdrew.

FSA Credit Balance When a Student Withdraws

 When a student withdraws, the College is required to perform a return calculation to determine, among other things, whether adjustments to the credit balance will occur. The College will not release the FSA credit balance created during the period to the student nor returned to the FSA programs prior to performing the return calculation. To determine the final amount of any FSA credit balance, the College will hold these funds beyond the original 14-day credit balance payment requirement.

The College will perform the return calculation including the FSA credit balance for the period as “disbursed funds” and will allocate any FSA credit balance resulting from both the return calculation and applicable institutional refund policy within 14 days from the date the College performs the return calculation as follows:

  • Allocate first to repay any grant overpayment owed by the student as a result of the withdrawal;
  • Pay any remaining FSA credit balance funds in one or both of the following ways:

(1)        Pay authorized charges at Community Christian College

(2)        Release to the student

 If the College attempts to disburse the credit balance and the check is returned or an ACH deposit is rejected, the College may make additional attempts no later than 45 days after the funds were returned or rejected. However, the College will cease all attempts and return the funds to the programs no later than 240 days after the initial issue date of the check.  The College will not pay a credit balance that is less than $1.

Return of Unearned FSA Funds

 In the Return Calculation, the College will return the lesser of the amount of FSA funds the student does not earn or the amount of institutional charges incurred by the student for the payment period or term multiplied by the percentage of unearned funds. The College’s institutional charges include tuition and fees initially assessed for the entire payment period or term prior to the student’s withdrawal. Initial charges may only be adjusted by changes the College made prior to the student’s withdrawal.

Student’s Responsibility for Returning Unearned Aid

The amount of FSA funds the student is responsible for returning is calculated by subtracting the amount returned by the College from the total amount of unearned FSA funds to be returned to the programs.

 Any amount of unearned federal grant funds that the student must return is called an overpayment. The amount of an FSA grant overpayment due from a student is limited to the amount in excess of 50% of the total FSA grant disbursed and could have been disbursed. The student does not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. The student must make arrangements with the College or the U.S. Department of Education to return the unearned federal grant funds.

Time Frame and Order of Return of FSA Funds

     The College will return the FSA funds to the programs up to the net amount disbursed in the following order:

  • Federal Pell Grants
  • Federal Supplemental Educational Opportunity Grants (FSEOG)

     The College will return the required unearned FSA funds as soon as possible but no later than 45 days after the date the College determined the student withdrew.