Pierce Administration Building - Room 102
NIACC
500 College Drive
Mason City, IA 50401
641-422-4168 or
1-888-466-4222 ext. 4168
Fax: 641-422-4167

Monday - Friday 7:45 a.m. - 4:15 p.m.

Title IV School Code: 001877
Priority Deadline for Campus Based Aid: March 1

Staff:
Mary Bloomingdale, Director
Colleen Sisco, Associate Director
Carla Alexander
Rhonda Groshens

Title IV Recipients Refund Policy

The refund schedule for recipients of Title IV Financial Aid will be calculated in accordance with Public Law 105-244, The Higher Education Amendments of 1998.

The law requires that if a student receives financial aid and withdraws from school during the payment period or period of enrollment in which the recipient began attendance, the school must calculate the amount of SFA Program assistance the student did not earn and those funds must be returned.

• Recalculation is based on the percent of earned aid using the following formula:
• Percent earned = Number of days completed up to the withdrawal date* / total days in the semester.
• Federal financial aid is returned to the federal government based on the percent of unearned aid using the following formula:
• Aid to be returned = (100% - percent earned) X the amount of aid disbursed toward institutional charges.

Institutions are required to return SFA funds on behalf of recipients in the following order:

1. Unsubsidized Federal Stafford Loans
2. Subsidized Federal Stafford Loans
3. Unsubsidized Federal Direct Stafford Loans
4. Subsidized Federal Direct Stafford Loans
5. Federal Perkins Loans
6. Federal PLUS Loans
7. Direct PLUS Loans
8. Federal Pell Grant
9. Federal SEOG
10. Other Title IV Assistance

In determining the amount of funds the student must return, the formula is as follows: Amount of Unearned Title IV Aid - School’s Responsibility = Student’s Responsibility.

Students must return funds in the following order:

1. Unsubsidized Federal Stafford Loans*
2. Subsidized Federal Stafford Loans*
3. Unsubsidized Direct Stafford Loans*
4. Subsidized Direct Stafford Loans*
5. Perkins Loans*
6. Federal PLUS Loans*
7. Direct PLUS Loans*
8. Federal Pell Grant x 50%
9. Federal SEOG x 50%
10. Other Title IV Assistance

* In accordance with terms of promissory note.

When aid is returned, the student may owe a bill to NIACC. The student should contact the Business Office to make payment arrangements.

Examples of Title IV Refund Policy

Example #1:

Student withdraws on the 25th day after the start of the semester which is 109 days long, student earns 22.93% of his/her federal aid. 77.07% of federal aid is considered to be unearned. The unearned amount must be repaid to loan and/or grant programs.

Student received a PELL grant of $1500 for the semester and is charged $1000 for tuition and fees. On the 21st day, the student received a cash refund of $500 for Pell grant that exceeded his/her cost. On the 25th day, the student officially withdraws from all classes.

$1000 X 22.93% = $229.30, the amount the college can apply to charges.

$1000 X 77.07% = $770.70, the amount the college must return to the federal government.

According to NIACC's Tuition Refund policy, the student is not entitled to a refund of charges.

Charges ...................$1000.00

Earned aid .................-343.95

Adjusted balance due .......$656.05

PELL cash refund unearned = $385.35 of which the student must return 50% or $192.68.

Total amount student will owe = $848.73 ($656 to NIACC for uncovered tuition and fees and $192 of unearned cash refund to the U.S. Department of Education.)

Example #2:

Student stops attending all classes and fails to notify the Registrar's Office. When the college determined that the student ceased attending all classes, NIACC asks instructors for the last date of attendance. When this documentation is gathered, NIACC will use this date as the student's unofficial date of withdrawal, if it is later than the 50% point of the semester. Assuming that the 50% point is used, the student will have earned 50% of his/her aid and the other 50% is considered unearned and must be repaid to the loan and/or grant programs.

$1000 x 50% = $500, the amount the college can apply to charges.

$1000 x 50% = $500, the amount the college must return to the federal government.

According to the NIACC Tuition Refund policy, the student is not entitled to a refund of charges.

Charges ....................$1000

Earned aid .................-$500

Adjusted balance due ........$500

PELL cash refund unearned = $250. Student must repay one-half of this amount or $125.

Total amount the student will owe = $625 ($500 to NIACC for uncovered tuition and fees and $125 of unearned cash refund to the U.S. Department of Education.)

If a student owes a repayment of grants to the U.S. Department of Education, they will remain ineligible for federal aid until they resolve their repayment. Students will have an opportunity to resolve the overpayment by contacting the NIACC Business Office within two weeks of receiving notice and making payment arrangements...

*In determining the withdrawal date of the student, NIACC’s policy will be:

• The date that the student began the withdrawal process by completing a Student Withdrawal Form with assistance from a counselor/advisor and submitting to the Records Office for withdrawal;
• The date that student otherwise provided official notification to the school of the intent to withdraw; or
• If the student did not begin the withdrawal process or otherwise notify the school of the intent to withdraw, the midpoint of the payment period for which the financial aid assistance was disbursed or a later date documented by the school.

If the school determines that a student did not begin the withdrawal process or otherwise notify the school of the intent to withdraw due to extenuating circumstances, the school may determine the appropriate withdrawal date.

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