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Return of Title IV Funds & Withdrawals
Posted By sbaletsa On June 22, 2009 @ 9:19 am In | Comments Disabled
Northern Essex Community College is required to determine the earned and unearned portions of Title IV aid (Federal Financial Aid) as of the date a student ceases to attend all of his/her classes. Earned and unearned aid is based on the amount of time a student spent in attendance. Up through the 60% point in each semester a pro-rata schedule is used to determine the amount of Federal Financial Aid a student has earned at the time of withdrawal. After the 60% point in the semester a student has earned 100% of their Federal Financial Aid.
EXAMPLE: Sally Student has been awarded $1,000 of financial aid. She withdraws from all of her classes during the semester. It is determined that Sally has attended 40% of the semester. Therefore, the R2T4 calculation dictates that Sally gets to keep $400 (or 40%) of her financial aid.
NOTE: The Return of Title IV Funds (R2T4) regulations do not dictate an institutional refund policy. Withdrawing from or ceasing to attend classes can result in owing a balance to NECC if a student does not earn enough financial aid to cover their bill. See the NECC refund policy .
Only students who have withdrawn from all classes and/or have been reported as not participating/attending are subject to the R2T4 calculation. Situations that would not require a R2T4 calculation include students who were only awarded federal work-study and those students who never began attendance in any classes. Also, if a student withdraws from some, but not all of their classes a R2T4 calculation is not required. NECC will return the required amount of Federal Financial Aid based on the R2T4 calculation and the Bursar’s Office will then bill a student for any outstanding balance.
Acceptable methods of payment for paying an outstanding balance after a R2T4 calculation include cash, personal check (if no previous check has bounced), bank check, credit cards, debit cards, and money orders. Students who owe money can be sent to the College’s collection agencies and then to the state intercept program, based on the Bursars policies and procedures for all outstanding bills.
Occasionally a student who withdraws from NECC is entitled to a post-withdrawal disbursement. A post-withdrawal disbursement occurs when the R2T4 calculation determines that a student is entitled to financial aid even though the student has completely withdrawn or stopped attending. If a student withdraws and is entitled to a post-withdrawal disbursement, a disbursement notice is mailed to the student informing him/her of the disbursement. It is the student’s right/responsibility to notify NECC if you do not wish to receive the funds.
Article printed from Northern Essex Community College: http://www.necc.mass.edu
URL to article: http://www.necc.mass.edu/getting-started/financial-aid/withdrawal/
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