In compliance with Federal regulations, NCAD will determine how much federal student financial assistance the student has earned or not earned when a student withdraws from NCAD.
When a recipient of a Title IV grant and/or loan withdraws from NCAD during any payment period in which the recipient began attendance, NCAD must determine the amount of Title IV grant and/or loan that the recipient earned as of the student’s withdrawal date. Unearned funds must be returned to the Title IV programs.
This policy applies to all Financial Aid recipients who withdraw, drop out, leave without notice, or otherwise fail to complete 60% of the payment period for which they received Title IV funds (grants and/or loans). A student’s withdrawal date is the last date of attendance as determined by NCAD’s attendance records or the date of determination in accordance with NCAD’s withdrawal policy.
The amount earned will be based on the percentage of the payment period that was completed in days up to and including the last date of attendance. The school calculates the amount of Title IV assistance earned by the student by dividing the number of days the student attended in the payment period by the total number of days in the payment period.
Calendar days (including weekends) are used, but breaks of at least five days are excluded from both the numerator and denominator.
Until a student has passed the 60% point of a payment period, only a portion of the student’s aid has been earned. A student who remains enrolled beyond the 60% point is considered to have earned all awarded aid for the payment period.
If a student received more than the amount of federal student financial assistance earned, the difference will be returned in accordance with Federal Regulations in the following order: Unsubsidized Federal Direct Stafford loans, Subsidized Federal Direct Stafford loans, Federal Direct PLUS loans, and Federal Pell Grants. The Financial Aid officer will make adjustments to EdExpress and export to COD. The Finance Director will refund the funds via G5 to the Direct Loan Program within 45 calendar days.
In addition, the student may also be obligated to return funds based on the calculation. A student returns funds to the FDLP Stafford loan programs based on the terms and conditions of the promissory note of the loan. If the remaining amount of funds to be returned includes grant funds, the student must repay any amount of the overpayment that is more than half of the grant funds received. NCAD will notify the student as to the amount owed and how and where it should be returned.
Students who do owe grant funds are required to make payment of those funds within 45 days of being notified that they owe this repayment. During the 45-day period, students will remain eligible for Title IV funds. If the student does not take action within the 45 days of being notified, NCAD will notify the US Dept. of Education. The student will no longer be eligible for Title IV funds until they enter into a satisfactory repayment agreement with the US Dept. of Education.
If more Federal student financial assistance has been earned than has been received, the student may be eligible for a post-withdrawal disbursement. NCAD will notify the student of any post-withdrawal disbursement for which the student may be eligible and
what steps need to be taken for the Federal financial assistance funds to be received. NCAD is required to make a post-withdrawal disbursement within 180 days of the date NCAD determines the student withdrew. Upon completion of the Return of Title IV Funds calculation, if it is determined a post withdrawal is due to the student and/or parent, NCAD will notify the student and/or parent in writing.
The student will be charged 100% of the institutional charges if the student’s withdrawal date occurs after 60% of the payment period.