Return of Federal Financial Assistance
Return of Federal Financial Assistance
Policy
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Document Number: SFS--114 Revision #: 1.0
Document Owner: Executive VP Date Last Updated: 08/17/2012
Primary Author: Executive Director of Enrollment Services Status: Approved
Date Originally Created: 11/30/2011
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General Description
Description: Information about return of federal financial assistance.
Purpose: Delineation of policy.
Scope: Students
Responsibility: Student Financial Services
VP of Business and Finance
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Requirements
Relevant Knowledge: In order to comply with this policy you should know:
Federal statutes
Current University policy
Standard company policies
Standards of good practice
State statutes
Terms and Definitions: Additional training
Corrective Action
Loss of privilege, general
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Policy Provisions
1. Return of Federal Financial Assistance
When a student who has received Federal financial assistance (Pell Grants, FSEOG Grants, Federal Perkins Loans, Federal Direct Stafford Loans, or Federal Direct Parent Loans for Undergraduates) fully withdraws from the University, the unearned portion of the aid must be returned to the program. The unearned portion is calculated up to the first 60% of the enrollment period. The calculations are made on a pro-rata basis, based upon the total enrollment period. The Federal government has set the order in which unearned aid must be returned to the programs. Students should note that the requirement to return the unearned portion of Federal financial assistance might leave them owing a balance due to Cumberland University.
The order of distribution for refunds is as follows:
• William D. Ford Direct Unsubsidized Federal Stafford Loans
• William D. Ford Direct Subsidized Federal Stafford Loans
• William D. Ford Federal Direct PLUS Loans
• Federal Pell Grants
• Federal Supplemental Educational Opportunity Grants (FSEOG)
• Other Title IV aid
• Other Federal sources
• State, private or institutional aid
• Student
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Performance Evaluation
Performance Metrics: Compliance with standard policy and procedure
Compliance with federal mandate
Consequences: Further training
Loss of privileges
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Subject Experts
The following may be consulted for additional information.
Executive Director of Enrollment Services