Financial Aid Refund Policy

 

Financial Aid refund policy for students dropping individual courses

(This policy does not apply to students who are completely withdrawing from NCU)

A student whose enrollment level decreases during the period at the start of the semester where a tuition refund is applicable may have their financial aid adjusted as a result of the enrollment change.  Changes made prior to funds being disbursed to the student account always mean the awards are adjusted to the current enrollment level before disbursement.

 

 

 

Financial Aid refund policy for students completely withdrawing from NCU (Return of Title IV Funds Policy)

(This policy does not apply to students who are dropping individual courses)

If a student withdraws or is dismissed from North Central University, the University or the student may be required to return some of the financial aid awarded to the student.  This may include but is not limited to aid from federal, state, and institutional sources.

If a student is withdrawing, the student should contact the North Central University Student Life Office, obtain the Student Withdrawal Form, and complete the withdrawal steps listed.

The federal "Return of Title IV Funds" formula dictates the amount of Federal Title IV aid that must be returned to the federal government by the school and the student. The federal formula is applicable to a student receiving federal aid other than Federal Work Study if that student’s withdrawal date is on or before the 60% point in time in the semester.

The withdrawal date used in the Return of Title IV Funds formula is the date of the latest verified academically related activity (typically physical attendance in a class) according to the records of the professor and Registrar’s office.  The withdrawal date is determined by the same method whether the student completes the withdrawal steps (official withdrawal) or simply stops participating in academic activities (unofficial withdrawal).

The federal formula requires a return of Title IV aid if the student received federal financial assistance in the form of a Federal Pell Grant, Federal SEOG, Federal Stafford Student Loan, Federal Perkins Loan or a PLUS Loan and has a withdrawal date on or before 60% of the semester is completed.  Whatever percentage of the semester remains after the withdrawal date is the percentage of aid that must be returned.  This percentage can be calculated by taking the number of calendar days remaining in the semester and dividing by the number of total calendar days in the semester. Scheduled breaks of more than four consecutive days are excluded.

If a student has received excess funds that must be returned to the government, the University shares the responsibility of returning those excess funds with the student. The University’s portion of the excess funds to be returned is equal to the lesser of

• the entire amount of the excess funds, or

• the total institutional charges multiplied by the percentage of unearned funds.

Title IV financial aid refunds will be returned in the following order: 

  1. Unsubsidized Federal Stafford Loan
  2. Subsidized Federal Stafford Loan
  3. Federal Perkins Loan
  4. Federal PLUS loan
  5. Federal Pell Grant
  6. Academic Competitiveness Grant
  7. Federal Supplemental Educational Opportunity Grant (FSEOG)
  8. Other assistance under Title IV for which a return of funds is required

If the University is not required to return all of the excess funds, the student must return the remaining amount in the order indicated above. Any loan funds to be returned must be repaid according to the terms of the promissory note. If grant funds are to be returned, the law provides that the amount to be repaid is to be reduced by 50%. This means that half of any excess federal grant funds received must be returned.

Any grant money that the student is responsible to pay back is considered a Federal grant overpayment. That overpayment must be paid in full or satisfactory arrangements made with either North Central University or the Department of Education to repay the amount within 45 days of the date of notification of the overpayment or the student will lose further eligibility for ALL federal aid for attendance at ANY college until the debt is paid in full.

If any excess funds are to be returned after the return of Title IV aid, those funds will be used to repay state funds, other private sources, and the student in proportion to the amount received from each non-federal source as long as there was no unpaid balance at the time of withdrawal. If there was an unpaid balance, then all aid sources will be repaid before any funds are returned to the student.

Students who withdraw from North Central will retain a portion of their institutional financial aid based on the percentage of refund of charges (i.e. a student who receives a 75% refund of tuition will retain 25% of institutional aid funds).

Examples used to determine the Return of Title IV aid are available in NCU’s Financial Aid Office upon request.