Refund and “Return of Title IV Funds” Policy

If a student withdraws or is dismissed from North Central University, the University or the student may be required to return some of the federal funds awarded to the student. The student may also be eligible for a refund of a portion of the tuition, fees, room, and meal plan paid to North Central University for the semester. If the student received financial assistance from outside of the family, a portion of the refund may be returned to the grant, scholarship, or loan source from which the assistance was received.

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. This procedure will enable North Central University to refund the maximum possible institutional charges.

North Central's Refund Policy exists for calculating the refund of institutional charges. 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 withdraws on or before the 60% point in time in the semester. The student may also receive a refund of institutional charges through North Central's refund policy. The amount of refund of institutional charges will be the greater of the amount the school must return to federal Title IV programs or the amount determined by North Central’s Refund Policy.

North Central's Refund Policy provides students who officially withdraw from the University a prorated refund of tuition, general fee, and room and technology fees according to the following schedule:

During the first partial week of classes 100%
Through Friday of the first full week of classes 87.5%
Through Friday of the second full week of classes 75%
Through Friday of the third full week of classes 62.5%
Through Friday of the fourth full week of classes 50%
Through Friday of the fifth full week of classes 37.5%
Through Friday of the sixth full week of classes 25%
Through Friday of the seventh week of classes 12.5%

Meal plan refunds are calculated based on unused weeks of participation following withdrawal up to the 60% point in the semester. No refunds for meal plans are processed after the 60% point in the semester.

The following items are not subject to the refund policy:

Lab or course fees
Medical insurance
Orientation fees
Late fees or service charges
Schedule change fees
Textbooks

Students who leave without officially notifying North Central (discontinue participating in academically related activities without advising the University) will not receive a refund of tuition, general fee, technology fee, room, or meal plan charges. For purposes of return of Title IV funds, students who unofficially withdraw from North Central will be considered to have withdrawn after 50% of the semester has passed or the documented last date of an academically related activity, whichever is later.

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 withdrew on or before 60% completion of the semester. The percentage of Title IV aid to be returned is equal to the number of calendar days remaining in the semester divided by the number of 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:

Unsubsidized Federal Stafford Loan
Subsidized Federal Stafford Loan
Federal Perkins Loan
Federal PLUS loan
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
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, general fee and room charges 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.