Financial Aid Refund Policy
Calculation of Refunds
Students who have a credit balance on their account are eligible to receive a refund. The type of credit on students’ account will determine the method of initiating the refund and the length of time for a student to receive their refund. If a student has a Title IV credit on their account, then a refund will be processed within 14 days.
Students will receive an email (AU email address) when the refund is processed. The student will have 5 business days to pick up their check. All checks not disbursed will be mailed to the mailing/local address on file in the Jenzabar system.
Release of Refunds
Attendance Threshold: Financial aid funds are disbursed to students only after the attendance threshold set by the US Dept. of Ed. is met. Students failing to attend class (‘no-shows” or “never attends”) do not earn any financial aid funds, and consequently have no aid to be applied to student charges/disbursed.
Multiple Release Dates: Allen University currently has multiple start dates for courses offered in both fall and spring semesters. As such, the attendance thresholds for classes beginning in October and March will be met much later. To ensure faster processing, AU will release refunds as credit balances are created each semester. Financial aid refunds are released via paper check as AU does not offer direct deposit. In order to remain in compliance with federal regulation, AU must release student refunds within 14 days of receipt of funds from the US Department of Education. Furthermore, the Office of Student Accounts determines the date, time and location of each disbursement.
Student Refund Schedule
The Business Office will publish refunds day for each semester. Please visit your MyAllen for the refund schedule.
Withdrawals & Title IV Refunds/Return of Funds
Federal, state and institutional aid is awarded and disbursed based on the assumption that a student will attend courses for the entire semester and is therefore eligible for the entire amount of the disbursement. A Return of Title IV (R2T4) funds calculation is performed when a student who is awarded FSA funds withdrawals from a semester of study. The OSFA uses software provided by the U.S. Department of Education to complete this calculation. A copy of the student’s unofficial transcript, student account statement, and financial aid record is used in conjunction with this software. A notification will be sent within 30 days of the withdrawal date if any Title IV aid needs to be returned.
The Registrar’s Office is officially designated by the school as the office where students are to provide official notice of intent to withdraw. If a student stops attending classes before completing 60% of the semester, the student is considered to have earned only a percentage of his/her aid equal to the percentage of the semester completed. In such cases, the school must apply federal and state rules to determine how much unearned aid must be repaid by the student and the school, respectively. If a student receiving Federal Title IV Aid withdraws after completing 60% of the semester, no Title IV Aid will be returned. The student is considered to have earned 100% of the Title IV Aid for the semester. The adjustment of aid may have implications for future aid years and it is therefore suggested that all students considering withdrawal contact the Financial Aid Office for guidance.
Allen University has its own institutional refund policy which determines the charges that a student will owe after withdrawing. This institutional refund policy is separate from and does not affect the amount of Title IV aid earned under the Return of Title IV funds calculation.
Title IV Financial Aid includes:
Federal Pell Grants
Federal Supplemental Educational Opportunity Grants (FSEOG)
Federal Direct Subsidized and Unsubsidized Loans
Federal Direct PLUS Loans (for Parents and Graduate Students)
The Office of the Registrar will notify all key areas within 24 hours of official/unofficial withdrawals. The Office of Student Financial Aid calculate the RT24 within 14 business days of notification from the Office of the Registrar. An additional 14 days will be required for Post-withdrawal responses and a revised report will be sent to the registrar and Office of Student Accounts. The Office of Student Accounts will assess accordingly within 3 business days.
Withdrawal Date
Withdrawal Date is defined as the actual date the student began the institutional withdrawal process, the student’s last date of recorded attendance or the midpoint of the semester for a student who leaves without notifying the University.
Formula Calculation
Title IV Return of Funds is calculated by using the official withdrawal date (retrieved from the Office of the Registrar) to determine the percentage of the semester completed by the student. The percentage completed is then multiplied by the amount of FSA funds disbursed to the student to determine the amount of aid earned by the student. The amount earned is then subtracted from the total award for that term to determine unearned aid.
Institution & Student Responsibility
All unearned FSA funds must be returned to the Department of Education by AU within 30 days of the official withdrawal date. When a student owes an overpayment of aid due to the R2T4 calculation, either the aid is reduced to repay the overpayment or a series of three letters over a 45-day period are sent to the student requesting repayment of the unearned funds. If the student fails to repay the funds by the requested “due date,” the overpayment is reported to the National Student Loan Data System (NSLDS) and to the Federal Borrower Services (for federal funds). When the student owes any money to the University resulting from the return of unearned financial aid, the Business Office at Allen University bills the student. If the student does not pay the funds due to the University, a hold is placed on the student’s account and he/she is permitted to register for classes; however, will not receive transcripts until the balance has been resolved.
Unofficial Withdrawal Policy
If a student stops attending and fails to officially withdraw from classes, the student is considered to be an unofficial withdrawal. For unofficial withdrawals we use the date determined by the University Registrar as the withdrawal date by reviewing the last date of attendance from an instructor. If the student’s withdrawal date is the same date as the disbursement date, we consider the aid disbursed prior to the withdrawal.
Institutional Refund Policy
Students who are admitted and register for courses at Allen University are financially responsible for fees and charges associated with those courses. Students are encouraged to complete all courses for which they register. If it becomes necessary for a student to drop one or more courses or completely withdraw from the University, an academic charge adjustment may be applied using the following guidelines:
Before the end of the first week of classes 100%
Before the end of the second week of classes 75%
Before the end of the third week of classes 50%
Before the end of the fourth week of classes 25%
These guidelines will also apply to institutional and state aid.
Room and Board
If students officially change their enrollment status, withdraw from school or officially change their status from on campus to off campus within 5-days from the start of classes; students will be charged 25% of the room and board charge. If students officially change their enrollment status, withdraw from school or officially change their status from on campus to off campus students will be charged 100% after the 5-day period. Room deposits are refundable if the University is unable to assign housing. Additionally, students who plan to reside on campus must pay their room reservation fee by the end of the academic school year. Finally, you must provide a valid award letter before you can receive a room key for any assigned residence hall.
Post-Withdrawal Disbursements
A post-withdrawal disbursement applies when a student completely withdraws from school and may be eligible to receive grants and or loans that have not yet disbursed. The amount of the disbursement is determined by a required Return of Title IV calculation when a student completely withdraws from school. A student may not receive any funds as a post-withdrawal disbursement that the school is prohibited from making on or before the date the student withdrew.
Examples of this include:
If a promissory note for a Federal Direct Stafford Loan or Federal Direct Parent PLUS Loan has not been signed and submitted by the student before the institution performs the Return to Title IV calculation, the loan is s automatically canceled.
The institution may provide loan counseling information with the notice of eligibility for a post-withdrawal disbursement. However, the institution will not make the disbursement to the student until the student has completed entrance counseling.
If the student is a first-year, first-time borrower of a Federal Direct Loan and withdraws before the 30th day of the semester, the Federal Direct Stafford Loan or Federal Direct Parent PLUS Loan is canceled.
If it is determined that a student or parent is eligible for a post-withdrawal disbursement, grant funds will be disbursed first and will be credited to the student's account for current outstanding charges of tuition and fees. For a balance due for charges other than tuition and fees, the institution will seek authorization from the student to deduct those charges from grant proceeds. If a remaining balance exists, the institution will seek the student's or parent's, if applicable, authorization to pay tuition and fees and other educationally related expenses from loan proceeds. If a credit balance exists after the payment of all charges, the institution will refund those funds to the student or parent (in the case of a Federal Direct Parent PLUS Loan). Any remaining balance due the institution is the responsibility of the student.
Returning Unearned Funds
Allen University will return the any unearned Title IV funds for which it is responsible no later than 45 days from the determined date of the student's withdrawal in the following order:
Federal Direct Unsubsidized Stafford Loans
Federal Direct Subsidized Stafford Loans
Federal Direct Graduate PLUS Loan
Federal Direct Parent PLUS Loan
Federal Pell Grants
Federal Supplemental Educational Opportunity Grant
Other Federal Grants
Requirements and Deadlines for R2T4 Calculations and Return of Title IV Aid
The following list outlines the requirements and deadlines for the return of Title IV funds.
Determining withdrawal date: 30 days after the end of earlier of the following (1) Semester (payment or enrollment period), (2) Academic year in which the student withdraws, or (3) Educational program from which student withdrew.
Return of unearned Title IV funds: No later than 45 days after the date AU determined the student withdrew.
Post-withdrawal disbursement to student’s account: No later than 180 days after the date AU determined the student withdrew
Written notification providing the student (or parent) the opportunity to accept all or part of a post-withdrawal disbursement of Title IV loan funds to the student’s account: Within 30 days of AU’s determination that the student withdrew
Written notification of student’s eligibility for a post-withdrawal disbursement of Title IV loan funds in excess of outstanding current (educationally related) charges: Within 30 days of AU’s determination that the student withdrew
Post-withdrawal disbursement to the student for earned Title IV funds in excess of outstanding current (educationally related) charges: From the date, AU determined the student withdrew… (1) No later than 180 days for loans and (2) No later than 45 days for grants
Notification to the student of grant overpayment: Within 30 days of the date AU determined that the student withdrew.
Referral of student to Debt Resolution Services: As soon as possible.
Student (or parent) deadline to submit response instructing AU to make a post- withdrawal disbursement: Deadline is given in writing when AU makes the offer of a post-withdrawal disbursement.
Notification to the student (or parent) of the outcome of a late request for a post-withdrawal disbursement to student: As soon as possible.
Student’s deadline to return any unearned Title IV funds: (1) For loans, according to the terms of the loan and (2) for grants, within 45 days of the date AU sent or was required to send a notice (whichever is earlier).