Financial Aid Return Policy

Refunds and the Return of Federal Title IV Funds

A change of enrollment status (e.g., full-time to part-time, withdrawal from university) impacts the eligibility for some forms of student aid which may result in a refund or balance due. The term “Title IV Funds” refers to the Federal Financial Aid programs authorized under the Higher Education Act of 1965 (as amended) and includes the following programs: Federal Direct Education Loans (Subsidized and Unsubsidized, PLUS loans), Federal PELL Grants, and Federal Supplemental Educational Opportunity Grant (FSEOG).

Title IV aid is earned on a prorated manner, on a per day basis, up to and including the 60% point in a semester or period of enrollment. Title IV aid and all other aid is considered to be 100% earned after that point in time. The percentage of Title IV aid earned at any point in a semester is calculated as follows:

* *The total number of calendar days in a semester shall exclude any scheduled breaks of more than five days. Please refer to 34 C.F.R. §668.22(e) and (f).

The percentage of Title IV aid unearned (i.e., to be returned to the appropriate aid program) shall be 100% minus the percentage earned.

Unearned aid is first returned from the student’s account based on the following calculation:

The Higher Education Amendments of 1998 changed the formula for calculating the amount of aid a student and university can retain when the student totally withdraws from all courses. Students who withdraw from all classes prior to completing more than 60% of an enrollment term will have their eligibility for aid recalculated based on the percent of the semester or enrollment period completed.

For example, a student who withdraws completing only 30% of the semester will have “earned” only 30% of any Title IV aid received. The university and/or the student must return the remaining 70% to the proper aid program. The Office of Financial Aid encourages students to carefully consider the financial implications of withdrawing from the university. Students considering withdrawal from all classes before completing 60% of the semester, payment period, or enrollment period, should contact the Office Financial Aid to see how their financial aid award will be affected. The policy applies to all students who withdraw, drop out or are dismissed from OCU, and receive financial aid from Title IV funds.

Order of Returning Federal Financial Aid to Accounts

Unearned federal financial aid will be returned in the following order:

1. Federal Direct Unsubsidized Loans
2. Federal Direct Subsidized Loans
3. Federal Direct PLUS Loans
4. Federal Direct Pell Grants
5. FSEOG

Please refer to 34 C.F.R. §668.22(i).

Title IV refunds are based on a student’s withdrawal date. A student’s withdrawal date may be:

• The date when official notification is provided by the student and a withdrawal form has been signed to a designated office,
• The last date of attendance of a student’s currently enrolled class, or
• Students last day of attendance at a documented academically related activity.

Post-Withdrawal Disbursement

If the student did not receive all funds that were earned prior to withdrawing, a post-withdrawal disbursement may be due.  If the student is eligible for a post-withdrawal disbursement of a grant, it must be disbursed within 45 days. If the post-withdrawal disbursement includes loan funds, the student must give permission before the funds can be disbursed.  Students will be notified within 30 days of the date of the withdrawal determination of any direct loan eligibility, or a parent for a Direct Parent PLUS loan eligibility.  The student and/or parent have 14 days to respond to this notification. If the student and/or parent does not respond to this notification within that time frame, the school is not required to make the post-withdrawal disbursement.

If permission is given for a post-withdrawal disbursement, funds are applied to the student account first and any resulting credit balance will be refunded to the student.  The credit balance will be refunded to the student and/or the parent in the case of a Direct Parent PLUS loan as soon as possible, but no later than 14 days after the credit balance has occurred. Please refer to 34 C.F.R §668.22 (a)(5) and (6); 34 C.F.R. §668.164(j).

Credit Balance Refund

If a Return of Funds (R2T4) calculation results in a credit balance on the student’s account, a refund will be processed as soon as possible and no later than 14 days after the calculation of R2T4. Please refer to 34 C.F.R. §668.164(h).

Time Frame for the Return of Title IV Program Funds

OCU will return any unearned Title IV funds as soon as possible, but no later than 45 calendar days from the date of determining the student withdrew. Please refer to 34 C.F.R. §668.22(g) and (j).

Notification to Student

Once the Return of Funds (R2T4) calculation has occurred, the Office of Financial Aid will notify the student of the results of the calculation and the aid that was returned. The Business Office will notify the student if any outstanding balance due to the institution as a result.

Official Withdrawal from OCU

A student is officially withdrawn on:

1. The date the student provided official notification of intent to withdraw, in writing or orally; or
2. The date the student began the withdrawal process Office of Student Life (traditional students) or with their NTE Advisor (non-traditional students). A student is allowed to rescind this notification in writing and continue the program. If the student subsequently drops, the student’s withdrawal date is the original date of notification of intent to withdraw.

Official dates and deadlines for withdrawing are specified in OCU’s Academic Calendar.

Students with financial aid who are withdrawing from OCU are advised to complete the withdrawal form through the Office of Student Life (Traditional Students or NTE Advisor (non-traditional students). For withdrawals processed after Census for fall or spring terms or the equivalent dates for summer sessions, the grade of W is recorded for each course in which a withdrawn student was enrolled.

A student is considered a withdrawal from classes offered in a session of enrollment when the student ceases attendance at any point prior to completing the period of enrollment unless the school obtains confirmation from the student at the time of withdrawal that the student will attend a session that begins later in the same period of enrollment. This confirmation must be obtained at the time of the withdrawal even if the student has registered for subsequent courses.

If a student receives Title IV grant or loan assistance and does not begin attendance in a period of enrollment, the student is considered to be ineligible for any Title IV aid.

Upon receipt of the official withdrawal information, OCU will complete the following:

1. Office of Academic Affairs Aid verifies the student’s attendance through the withdrawal form or the school’s attendance records.
2. The Return of Title IV (R2T4) calculation is performed by the Office of Financial Aid to determine the amount of federal funds the student has earned and the amount of unearned Federal funds for which the school and the student is responsible to return (if any).
• Calculations are completed using the U.S. Department of Education’s Return of Title IV, HEA Funds Worksheets, student’s attendance, and withdrawal date are based upon the period of enrollment.
3. Office of Financial Aid will return the amount of any unearned portion of the Title IV funds for which the school is responsible within 45 calendar days of the date the official notice of withdrawal was provided.
4. Office of Financial Aid will provide the student with a letter explaining any returns that have been made to the Title IV, HEA programs on the student’s behalf as a result of exiting the program.
• Remaining unearned Title IV loan funds (e.g. Direct Loans) must be repaid by the student in accordance with the terms of the loans.
5. If a student’s scheduled attendance is more than 60 percent of the period of enrollment, he/she is considered to have earned 100 percent of the federal funds received for the period of enrollment. In this case, no funds need to be returned and no letter will be sent.
6. A copy of the completed worksheet and notification letter will be kept in the student’s 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 he/she is continuing his or her program of study and intends to complete the period of enrollment. Title IV, HEA assistance will continue as originally planned. If the student subsequently fails to attend or ceases attendance without completing the period of enrollment, the student’s withdrawal date is the original date of notification of intent to withdraw.

Officially withdrawing from classes may affect the student’s future eligibility for financial aid due to Satisfactory Academic Progress requirements and R2T4 balances owed. Please refer to 34 C.F.R. §668.22(b) and (c)

Unofficial Withdrawal from OCU

Unofficial withdrawals occur when official notification is not provided to OCU. If a student stops attending classes, the institution must assume, for Title IV, HEA purposes, the student has unofficially withdrawn and is administratively withdrawn.

A student who does not officially withdraw from the university is subject to the following penalties/conditions:

• Receive a grade of WE for all courses attended; and
• Obtain Provost approval prior for future registration.

If a student receives Title IV grant or loan assistance and does not begin attendance in a period of enrollment, the student is ineligible for any Title IV aid.

When a recipient of Title IV grant or loan assistance unofficially withdraws from an institution, after having begun class attendance during a period of enrollment, the institution must determine the amount of Title IV grant or loan assistance that the student earned up to the date of withdrawal. For unofficial withdrawals, the withdrawal is the last date of an academically related activity in which the student participated as stated by the professor of record or authorized departmental representative.

Once it has been determined that the student has ceased attendance, OCU will complete the following:

1. The Office of Student Life (traditional students) or NTE Advisor (non-traditional students) will notify the student as well as the students’ instructors if it is found that a student has ceased attendance.
2. The Office of Student Life (traditional students) or NTE Advisor (non-traditional students) SFAS will determine and record the student’s last date of attendance as the withdrawal date.
• The withdrawal date is the last date of an academically related activity in which the student participated as provided by the professor of record or authorized departmental representative.
• The Office of Academic Affairs (traditional students) or NTE Advisor (non-traditional students) will be notify and will process the administrative withdrawal.
3. The Return of Title IV (R2T4) calculation is performed by the Office of Financial Aid to determine the amount of federal funds the student has earned and the amount of unearned Federal funds for which the school and the student is responsible to return (if any).
• Calculations are completed using the U.S. Department of Education’s Return of Title IV, HEA Funds Worksheets, student’s attendance, and withdrawal date are based upon the period of enrollment.
4. Office of Financial Aid will return the amount of any unearned portion of the Title IV funds for which the school is responsible within 45 calendar days of the date the official notice of withdrawal was provided.
5. Office of Financial Aid will provide the student with a letter explaining any returns that have been made to the Title IV, HEA programs on the student’s behalf as a result of exiting the program.
• Remaining unearned Title IV loan funds (e.g. Direct Loans) must be repaid by the student in accordance with the terms of the loans.
6. If a student’s scheduled attendance is more than 60 percent of the period of enrollment, he/she is considered to have earned 100 percent of the federal funds received for the period of enrollment. In this case, no funds need to be returned and no letter will be sent.
7. A copy of the completed worksheet and notification letter will be kept in the student’s file.

Unofficially withdrawing from classes may affect the student’s future eligibility for financial aid due to Satisfactory Academic Progress requirements and R2T4 balances owed. Please refer to 34 C.F.R. §668.22(b) and (c)