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Federal Return of Title IV Funds Policy

*This policy is separate from the Stone Child College Return of Funds Policy

The US Department of Education and Stone Child College requires institutions to apply Return of Title IV Funds policy and grant disbursement and repayment policy for students withdrawing from Stone Child College who receive Title IV financial aid. Withdrawal from institution refers to any student who officially or unofficially leave the school or any student who fails to return to school from a Leave of Absence. If you withdraw from the institution and have received financial aid, any refundable amount of your institutional charges (tuition and fees) may be returned to the appropriate financial aid sources. The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The calculated amount of Return of Title IV funds is determined by the following procedures, as set by regulation.

Stone Child College has 45 days from the date the school determines to be your withdrawal date to return all unearned funds. Stone Child College is required to notify the student if they owe a repayment via written notice. A student or parent must be advised within 14 days from the date the written notice was sent to accept any post-withdrawal disbursements. If a response is not received or funds are declined, Stone Child College will return any earned funds it is holding to the Title IV program. Post-withdrawal disbursement must occur within 180 days of the date the student withdrew.

The amount of assistance you have earned is determined on a pro-data 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 that you were scheduled to receive for that period. If you did not receive all of the funds that you earned, you may be due a Post-Withdrawal disbursement.

Your school may automatically use all or a portion of your Post-Withdrawal disbursement of grant funds for tuition, fees and books. The school needs your permission to use the Post-Withdrawal disbursement for all other school charges. If you do not give your permission (some schools ask for this when you enroll), you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.

There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you have not attended at least one class in each of your registered classes, the school is required to return the aid.

If you receive (or your school or parent receives on your behalf) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of:

  1. Your institutional charges multiplied by the unearned percentage of your funds, or
  2. The entire amount of excess funds.

The school must return this amount even if it didn’t keep this amount of your Title IV program funds. If your school is not required to return all of the excess funds, you must return the remaining amount.11

Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You must make arrangements with your school or the Department of Education to return the unearned grant funds.

Please find below the responsibilities of Stone Child College and the student.

Stone Child College’s responsibility to the student is as follows:

  1. Provide student with Return of Title IV Policy
  2. Identify students who are affected by this policy
  3. Determine calculation of Return of Title IV funds
  4. Return any Title IV funds that are due

Students Responsibilities include the following:

  1. Based on the calculation of Return of Title IV Funds, the student will return any funds that were disbursed and were ineligible for
  2. Provide notification of withdrawal in writing
  3. At any time, a student does have the right to rescind the notice of withdrawal by doing so in writing.