Southern Adventist University is required by federal regulations to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of the payment period or period of enrollment. This also applies to students who receive federal funds and receive all F grades for ceasing to attend classes. The Records and Advisement Office will determine the last day of class attendance. ALL Title IV financial aid programs must be recalculated in these situations.
The requirements for Title IV program funds when a student withdraws are separate from any other refund policy that Southern Adventist University has. Therefore, it is possible that the student will still owe funds to Southern Adventist University to cover unpaid institutional charges. Southern Adventist University may also charge the student account for any Title IV program funds that the school was required to return.
The calculation is made for all federal financial aid recipients to determine whether a student who completely withdraws during a term has "earned" the monies disbursed. A student "earns" his/her aid based on the period of time they remain enrolled. During the first 60% of the term, a student "earns" student aid funds in direct proportion to the length of time he/she remains enrolled. After the 60% point in the payment period or period of enrollment, a student has "earned" 100% of the Title IV funds, he/she was scheduled to receive during the period. Any aid received in excess of the "earned" amount is considered "unearned". 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 also be required to return a portion of the funds.
This policy does not apply to those students who cancel their registration prior to the first day of classes nor does this policy apply to students who drop some but not all of their classes. In these particular cases, the Student Finance Office may have to recalculate the award based on the student's revised enrollment status.
The amount of earned financial aid is calculated on a daily basis from the first day of classes. The process uses calendar days rather than business days. Earned aid is determined by taking the number of days attended before withdrawing divided by the total number of days in the term (first day of instruction until the last day of finals). Breaks of at least 5 days are excluded.
The responsibility to repay the unearned Title IV aid is shared by Southern Adventist University and the student. For example, the calculation may require Southern Adventist University to return a portion of federal funds to the Federal Title IV programs. In addition, the student may also be required to return funds based on the calculation.
Once the earned and unearned aid percentages are determined, the next step is to calculate the dollar amount of unearned aid that must be returned. The return amount is determined by multiplying the unearned aid percentage by the total of all Title IV aid received.
The amount of unearned aid that must be returned by Southern Adventist University is a percentage of the institutional charges for the term. Southern Adventist University must return the lesser of:
Southern Adventist University must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of withdrawal. Funds will be returned in the following order, up to the total net amount disbursed from each source:
Once the institution's portion of the return of funds has been calculated, the Student Finance Office will reduce the student's original financial aid award and return the funds within 45 days to the appropriate program(s). If this creates a balance owed to Southern Adventist University, the student will be responsible for repaying the amount owed.
Any amount of the total unearned aid that remains becomes the student's portion of the return. The student portion of the return is calculated by subtracting the amount that the school had to return from the total unearned aid. Depending on the remaining sources of aid after the school return, the student portion of the return is distributed back to the aid program from which it was awarded. If the student is required to return either the entire Direct Loan or a portion thereof, the loan proceeds will be returned based on the terms and conditions of the Master Promissory Note (MPN). The student will not be billed for these funds upon withdrawal.
Any amount of unearned grant funds that the student must return is called an "overpayment". The grant funds returned by the student are applied in order as indicated below, up to the amount disbursed from that grant program minus any grant funds the school is responsible for returning to that program.
Note: The student is not responsible for returning funds to any program to which the student owes $50.00 or less.
If a student did not receive all of the funds that they earned, Southern Adventist University may offer the student a post-withdrawal disbursement. Eligibility for a post-withdrawal disbursement will be communicated to the student via email. Students must accept the loan via the electronic award letter and notify Southern Adventist University, in writing, of their interest in receiving the loan within 14 days of the notification. Once Southern Adventist University receives both acceptances, the loan funds will disburse to the student's account. Responding after 14 days or not at all, will result in forfeiture of the student’s loans for the period of enrollment. Southern Adventist University will automatically use all or a portion of the post-withdrawal disbursement for tuition, fees, and room and board charges.
Students whose program of study or course work does not span the entire length of the payment period are considered to be enrolled in courses offered in modules. Students enrolled in modules are considered withdrawn if they do not complete all of the scheduled days in a module that was used to determine the student’s eligibility for federal aid. Students are not considered withdrawn if:
Students who meet at least one of the above criteria will be granted a Return of Title IV exemption and no adjustments to their federal aid will occur.
Southern allows students to provide written confirmation on the withdrawal form at the time of withdrawal that he or she will attend a module that begins later in the same payment period. A student is not considered to have withdrawn if Southern obtains a written confirmation on the withdrawal form email, or written by the student from the student at the time of the withdrawal. A student can also submit written confirmation close to the date of the withdrawal.
Southern Adventist University considers a student who provided written confirmation but does not return as withdrawn if he or she does not return as scheduled to a future module with the same payment period.
Southern Adventist University allows students to return to a module within the same payment period who did not confirm future enrollment in that same payment period. The student is treated as if he or she did not cease attendance. The Return of Title IV Funds calculation will be reversed.