RETURN OF TITLE IV FUNDS
Students who apply for financial aid sign a statement that the funds will be used for educational purposes only. Therefore, if students who withdraw before completing the program, a portion of the funds received may have to be returned. Seguin Beauty School will calculate the amount of tuition to be returned to the Federal funds according to the policies listed below:
A full refund will be made to any student who cancels the enrollment contract within 72 hours (until midnight of the third day, excluding weekends and holidays) after the enrollment contract is signed and a tour of the facility has been made by the prospective student.
WITHDRAWAL POLICY ďOfficialĒ Voluntary Withdrawal
A student is considered to be ďOfficiallyĒ withdrawn on the date the student notifies the Director of Financial Aid in writing or orally, of intent to withdraw. The date of the termination for return and refund purposes will be the earliest of the following for official withdrawal:
1. Date student provided official notification of intent to withdraw, in writing or orally.
2. The date student began the withdrawal process, according to SBS attendance records. A student is allowed to rescind his notification in writing and continue the program. If the student subsequently drops, the studentís withdrawal date is the original date of notification of intent to withdraw.
Upon receipt of the withdrawal information, the SBS Financial Aid office will complete the following:
1. Determine the studentís last date of attendance as of the last recorded date of academic attendance on the schoolís attendance record;
2. Two calculations are performed:
a. The students ledger card and attendance record are used to perform the calculation of Return of Title IV funds the student has earned, and if any, the amount of Title IV funds for which the school is responsible. Returns made to the Federal Funds Account are calculated using the Departmentís Return of Title IV Funds Worksheets, and are based upon the payment period.
b. Calculate the schoolís refund requirement (see school refund calculations);
3. The instructor will update the student grade card to reflect a grade of Incomplete. SBS will return the amount for any unearned portion of Title IV funds for which the school is responsible within 45 days of the date the official notice was provided.
4. If applicable, the DFA will provide the student with a letter explaining the Title IV requirements:
a. The amount of Title IV assistance the student has earned. This amount is based upon the length of time the student was enrolled in the program and the amount of funds the student received.
b. Any returns that will be made to the Pell Grant program on the studentís behalf as a result of exiting the program. If a student has completed more than 60% of the payment period, h/she is considered to have earned 100% of the Pell Grant received for the payment period. In this case, no funds need to be returned to the Federal funds.
c. Advise the student of the amount of unearned Pell Grant and tuition and fees that the student must return, if applicable.
5. Supply the student with a final student ledger card with the outstanding balance due to the school and the available methods of payment.
6. A copy of the completed worksheet, check, letter and final ledger card will be kept in the studentís file.
In the event a student decides to rescind his or her official notification to withdraw, the student must provide a signed and dated written statement that h/she is continuing his or her program of study, and intends to complete the payment period. Title IV assistance will continue as originally planned. If the student subsequently fails to attend or ceases attendance without completing the payment period, the studentís withdrawal date is the original date of notification of intent to withdraw.
Any student that does not provide official notification of his or her intent to withdraw and is absent for more than 30 consecutive unexcused absences, does not resume attendance at the end of an approved leave of absence, fails to maintain satisfactory academic progress, fails to comply with the schoolís attendance and/or conduct policy, does not meet financial obligations to the school, or violates conditions mentioned in SBSíS Standards, will be subject to termination and considered to have unofficially withdrawn.
Within 10 business days after a 30 day period of no contact with the student after the studentís last date of academic attendance, or 10 days after failure to return from a LOA as determined by the attendance record, the following procedures will take place:
1. Originally, the school office will make three attempts to notify the student regarding his/her enrollment status;
2. Determine and record the studentís last date of attendance as the last recorded date of academic attendance on the attendance record;
3. The studentís withdrawal date is determined as the date the day after ten consecutive absences, or if student did not return from a LOA, the withdrawal date will be the date student did not return.
4. Notify the student in writing of their failure to contact the school and attendance status resulting in the current termination of enrollment;
5. The studentís ledger card and attendance record are used to calculate the
amount of Federal funds the student has earned, and, if any, the amount of Federal funds for which the school or student is responsible.
6. Calculate the schoolís refund requirement (see school refund calculations);
7. The student's record will reflect a grade of Withdrawn.
8. The SBS School Director will return to the Federal fund any unearned portion of Title IV funds for which the school is responsible within 30 days of the date the withdrawal determination was made, and record on studentís ledger card.
9. If applicable, the DFA will provide the student with a refund letter explaining Title IV requirements:
a) The amount of Title IV aid the student has earned, based upon the length of time the student was enrolled in the program pay period and the amount of aid the student received.
b) Advise the student in writing of the amount of unearned Title IV grant aid and tuition and fees that h/she must return, if applicable.
10. Supply the student with a final student ledger card showing the outstanding balance due to the school and the available methods of payment.
11. Schedule and conduct an exit interview with the student.
12. A copy of the completed worksheet, check, letter, exit interview, and final ledger card will be kept in the studentís file.
If tuition is collected in advance of entrance and if after expiration of the 72 hour cancellation privilege the student does not start, not more than $100 shall be retained by Seguin Beauty School.
Student will not be required to purchase books, supplies and equipment until such time as these materials are required. According to SBSís refund policy, once these materials are purchased, no refund will be made. (Please refer to the Return of Title IV Funds Policy and the State Refund Policy for treatment of these items per Federal regulations.)
A full refund of collected tuition will be made to student if h/she:
1. Is not accepted by the school;
2. Was enrolled by misrepresentation in advertising, SBSís promotional materials, or representations by the owner or SBSís representative ; or
3. Was enrolled in a course of instruction that is discontinued by SBS and prevents student from completing the course.
Refunds will be totally consummated within 45days after the effective date of termination.
IF STUDENT WITHDRAWS, TWO CALCULATIONS ARE PERFORMED:
1. The Return of Title IV funds (To determine amounts earned from the Federal programs) and
2. The State Refund Policy and the school accrediting body's refund policyóto determine the amount of institutional charges earned. These policies can be found in the schools handbook or a copy can be obtained at the school office. SBS will adjust studentís charges to take into account repayments of Title IV funds that SBS was required to make. (See refund Policy below)
RETURN OF TITLE IV FUNDS
Only the Title IV programs are to be included in this calculation. The Federal Pell Grant, FFEL and Direct Loan Programs are the only programs included in the calculation, which is the only Title IV Programs in which SBS participates. Any student receiving Title IV funds will be subject to these regulations.
The amount of Title IV aid earned is based on the amount of time student spent in academic attendance, and the total aid received; it has no relationship to studentís incurred institutional charges. Because these requirements deal only with Title IV funds, the order of return of unearned funds do not include funds from sources other than the Title IV programs.
Title IV funds are awarded to the student under the assumption that h/she will attend school for the entire period for which the aid is awarded. When student withdraws, h/she may no longer be eligible for the full amount of Title IV funds that were originally scheduled to be receive. Therefore, the amount of Federal grant earned must be determined. If the amount disbursed is greater than the amount earned, unearned funds must be returned.
Up through the 60% point in each payment period the required pro rata calculation is used to determine the amount of Title IV funds student has earned at the time of withdrawal. After the 60% point in the payment period, student has earned 100% of the Title IV funds.
Seguin Beauty School measures progress in Clock Hours, and uses the payment period for the period of calculation.
The Calculation Formula:
Determine the amount of Title IV aid that was disbursed plus the Title IV aid that could have been disbursed.
Calculate the percentage of Title IV aid earned:
a) Divide the number of clock hours scheduled to be completed in the payment period as of the last date of attendance in the payment period by the total clock hours in the payment period.
HOURS SCHEDULED TO COMPLETE
TOTAL HOURS IN PERIOD = % EARNED
b) If this percentage is greater than 60%, the student earns 100%.
c) If this percent is less than or equal to 60%, proceed with calculation.
Percentage earned from (times) Total aid disbursed, or could be disbursed = AMOUNT STUDENT EARNED.
Subtract the Title IV aid earned from the total aid disbursed = AMOUNT TO BE RETURNED.
100% minus percent earned = UNEARNED PERCENT
Unearned percent (multiplied by) total institutional charges for period = AMOUNT \DUE FROM THE SCHOOL.
If the percent of Title IV aid disbursed is greater than the percent unearned (times) institutional charges for the period, the amount disbursed must be used in place of the percent unearned.
If the percent unearned (times) institutional charges for the period is less than the amount due from the school, the student must return or repay one-half of the remaining unearned Federal Pell Grant.
Student is not required to return the overpayment if this amount is equal to or less than 50 percent of the total grant assistance that was disbursed/or could have been disbursed. The student is also not required to return an overpayment if the amount is $50 or less.
Seguin Beauty Schoolís Financial Aid Officed sends an overpayment notice to student within 30 days from the date of the schoolís determination that student withdrew, giving student 45 days to either:
1. Repay the overpayment in full to SBS,
2. Make repayment arrangements satisfactory to SBS, or
3. Sign a repayment agreement with the Department.