To Whom Does This Policy Apply: This requirement
applies to students who withdraw officially, unofficially, or are dismissed
from Enrollment at Hendrix. Hendrix does
not grant federally defined Leaves of Absence; however, the Hendrix leave of
absence is defined as an official withdrawal for Federal Financial Aid
purposes. This policy is separate and
distinct from the Hendrix Refund Policy.
The Hendrix Refund Policy can be viewed at: https://www.hendrix.edu/Catalog/2019-2020/Admission_and_Financial_Aid/Financial_Information/
What Financial Aid Programs are Included: The Title IV, HEA, Programs that are covered by this law
include: Federal Pell Grants, Iraq and
Afghanistan Service Grants, Direct Loans, Direct PLUS Loans, and Federal
Supplemental Educational Opportunity Grants.
How Does This Calculation Work? The
amount of Title IV, HEA aid earned is based on the amount of time a student
spent in academic attendance, and the total aid received; it has no
relationship to student’s incurred institutional charges. The amount of assistance that you have earned
is determined on a pro rata basis. For
example, if you completed 30% of your payment period or period of enrollment,
you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the
payment period or period of enrollment, you earn all the assistance you were
scheduled to receive for the period.
How Will I Know If This Affects Me? Students who are
considering withdrawal may contact the Office of Financial Aid for
guidance. All institutional and federal financial ramifications of
withdrawal can be discussed at their request. If desired, appropriate
calculations will be performed prior to the official withdrawal so that precise
fiscal consequences are known.
An Example of Calculation – Credit Hour School
1.
Determine the percentage of Title IV, HEA aid earned by the student by
taking the calendar days completed in the payment period, divided by the total
calendar days in the payment period (excluding breaks of 5 days or more and
days the student was on an approved LOA.
18 (completed days) divided by 118
(total days) = 15.3% (% of completed calendar days)
2.
Determine the amount of Title IV aid earned by the student by
multiplying the percentage of Title IV, HEA aid earned times the total of the
Title IV aid disbursed plus the Title IV aid that could have been disbursed for
the payment period.
15.3% X $2805.00 = $429.17 (amount
of aid earned by the student)
3.
If this percentage is greater than 60%, the student earns 100% of the
disbursed Title IV, HEA funds or aid that could have been disbursed.
4.
If this percentage is less than 60%, then the percentage earned is equal
to the calculated value.
5. Aid to be returned = (100% minus
the percent earned) multiplied by the amount of aid disbursed toward
institutional charges. If a student
earned less aid than was disbursed, the institution would be required to return
a portion of the funds and the student may be required to return a portion of
the funds. All Title IV funds that the
institution must return will be made no later than 45 calendar days after the
date the school determines that the student withdrew.
100% - 15.3% -84.7% (% of aid to be
returned)
84.7% X $2805 = $2,375.83 (Aid to be
returned)
6.
When Title IV, HEA funds are returned, the student may owe a balance to
the institution.
How do we determine the Date of “Official” or “Unofficial” withdrawal from
Hendrix College? The withdrawal date provided by the
Registrar’s Office is utilized to document the last date of enrollment for an
official withdrawal in the Return to Title IV calculation.
A student who earns all failing
grades based on non attendance may be considered an unofficial withdrawal for
the purpose of Return to Title IV. The documented last date of
educational activity will be utilized for the return of Title IV funds
calculation in these instances if known. If a date cannot be determined,
the mid-point of the semester is utilized.
Hendrix College restores unearned
aid used to pay institutional charges in the following order within 45 days of
the withdrawal determination:
- Unsubsidized Direct Stafford Loans
- Subsidized Direct Stafford Loans
- Direct Graduate PLUS loans
- Direct Parent PLUS loans
- Federal Pell Grants for which a return is required
- Federal Supplemental Educational Opportunity Grant for
which a return is required
- Iraq and Afghanistan Service Grant for which a return
is required
- Other Title IV, HEA assistance
- State Tuition Assistance Grants (if applicable)
- Private and institutional aid
- The student
A repayment may also be required of
the student, Hendrix College will also restore these funds to the appropriate
source in the above order within 45 days of the withdrawal determination.
Students are billed for any unearned
aid that was returned to the federal aid program that caused institutional
charges to be unpaid. Additionally, students will be billed for any monies
the College returns on the student’s behalf.
Hendrix College provides the student
with a letter outlining the amount of title IV aid that must be returned by the
school and the amount returned on the student’s behalf if required. Copies
of the return to Title IV calculation can be provided to the student upon
request. The Student Accounts Office
sends the student billing information showing the amount due. Copies of
information from the Student Aid Handbook or other regulatory sources can also
be made available at the request of the student.
What is a Post Withdrawal Disbursement? If a student earns
more aid than was disbursed, the student may be eligible to receive a post-
withdrawal disbursement. Students are notified by mail or email of their
eligibility for such a disbursement.
Hendrix will send this notification as soon as possible but no later
than 30 calendar days from the date the school determines the student
withdrew. This notification could
include repayment obligations, a request for permission to credit loan funds to
cover any unpaid institutional charges, a request for permission to make a
post-withdrawal disbursement of grant or loan funds for other than
institutional charges, and to seek permission to make a post-withdrawal disbursement
of loan funds directly to the student
If it is determined the student is
eligible for a post withdrawal of grant funds these will be automatically
credited to the student’s account for allowable current outstanding charges
within 45 days of the date the school determined the student withdrew. Students
without outstanding charges will have grant funding refunded within 45 days of
the date the school determined the student withdrew.
The student must confirm in writing
within 14 days if the loan funds are still desired. Any loan funds accepted will be disbursed as
soon as possible but no later than 180 days from the date the school determined
the student withdrew. Outstanding
institutional charges will be paid first.
Remaining loan proceeds will be delivered to the student within 14 days
of crediting the student’s account.
Time Frame for returning an unclaimed Title IV, HEA credit
balance:
If Hendrix attempts to disburse the credit balance by check and the
check is not cashed, the school must return the funds to the federal aid
program which generated the credit balance.
The college will identify uncashed federal aid checks and will void the
check after the 180th day of issuing the check and will return the
funds back to the applicable federal student aid program.
If a check is returned to Hendrix,
the school may make additional attempts to disburse the funds, provided that
those attempts are made not later than 45 days after the funds were
returned. When a check is returned and
the school does not make another attempt to disburse the funds, the funds must
be returned before the end of the initial 45 day period.
The school must cease all attempts
to disburse the funds and return them no later than 240 days after the initial
issue date of the check.
Verification Not Complete: If a student withdraws prior to completing
verification, only Title IV funds not subject to verification will be included
in the Return Calculation, i.e., Direct PLUS loans and Direct Unsubsidized
Stafford Loans. If a student
subsequently completes verification before the verification deadline but after
the initial withdrawal calculation, the school will complete a new Return
calculation including all aid that could have been disbursed. The student will be offered any post-withdrawal
disbursement as soon as possible and the student will have 14 days to respond
to the offer. Any post-withdrawal
disbursement that results from the new Return calculation will be made as soon
as possible but no later than 180 days after the school determined the student
withdrew.
If a student is entitled to an
institutional refund of tuition and fees, those monies will first be applied to
any outstanding balance to the College before being refunded to the student.
Return to Title IV, HEA Questions: If
you have questions regarding Title IV, HEA program funds after visiting the
Hendrix College Office of Financial Aid, you may call the Federal Student Aid
Information Center at 1800-4-fedaid (800-433-2343). TTY users may call 800-730-8913. Information is also available at student aid
on the web: www.studentaid.ed.gov
*This policy is subject to change at any time,
and without prior notice.