Whenever a school credits Federal funds to a student’s account, and those funds exceed the student’s allowable charges, a school must pay the excess Federal Funds (credit balance) directly to the student within 14 days of the later of:
• the date the balance occurs on the student’s account.
• the first day of classes of the payment period or period of enrollment, or the date the student rescinds his or her authorization for school to retain funds in excess of the amount needed to cover allowable charges.
• the day of the payment period of enrollment for which the disbursement is intended.
FEDERAL "RETURN OF TITLE IV AID" (R2T4) POLICY:
The federal refund formula is applicable to any student receiving Title IV aid, which includes the Federal Pell Grant, Federal TEACH Grant, Federal Academic Competitiveness Grant, Federal National SMART Grant, Federal Supplemental Educational Opportunity Grant, Federal Perkins Loan, Federal Stafford Loan (Subsidized and/or Unsubsidized) and Federal PLUS Loans (Graduate and Parent). This refund calculation excludes Federal Work-Study. The federal refund formula provides a return of Title IV aid if the student withdraws, is administratively withdrawn or voluntarily ceases attendance in all classes before completing more than 60% of the enrollment period. Furthermore, a refund calculation must be performed for financial aid recipients who fail to earn a passing grade in all classes as identified by the Financial Aid Office at the end of the semester; these students are considered "unofficially withdrawn" and the R2T4 calculation must be performed to determine how much aid was 'earned' and how much must be 'repaid' by the student. The amount is based on the student's last documented date of attendance as reported by the Registrar's Office and/or documentation from the professor. If any refund remains after the required return of the Title IV aid, the refund will then be used to repay other state/institutional grants and/or scholarships, as detailed below in the State Refund Policy. If any financial aid funds are released to the student prior to the student's withdrawal (via a refund check as a result of a credit balance on the student's account), the student may then be required to repay all or a portion of the financial aid funds that had been previously released to the student. Students who wish to withdraw must follow Selma University official withdrawal policy. If a student officially withdraws or stops attending all courses, he/she may be required to repay all or part of the financial aid disbursed in the withdrawal term.
Students receiving federal funds may be required to repay aid determined to be "unearned." The earned/unearned calculation is based on the percentage of days a student attends during the term in which they withdrew. The amount of aid earned is determined on a pro-rata basis. That is, if a student completes thirty percent of the term in which a student withdraws, the student earns 30 percent of the federal aid received. Once a student completes 60 percent of the term, a student is considered to have earned all of the aid.
The difference between earned federal aid and 100 percent equals the percentage of unearned federal funds that are subject to repayment. Federal regulations require Title IV aid to be refunded in the following order:
• Federal Unsubsidized Stafford Loans
• Federal Stafford Loans
• Federal Pell Grants
• Federal Supplemental Educational Opportunity Grants