Satisfactory Academic Progress Policy (PDF)

Withdrawal from NCSA — Refund of Charges and Return of Financial Aid

• Return of Title IV Program Funds Policy for Title IV Federal Aid Recipients
• Institutional Refund of Charges Policy for Non-Title IV Recipients
• Sample of a Refund Repayment

A student who withdraws from NCSA during a period of enrollment (i.e., begins the term but does not complete it) should be aware of policies regarding the adjustment and potential refund of institutional charges and the return of financial aid.  These policies vary according to whether or not the student is a recipient of Title IV Federal aid such as the Federal Pell Grant, Academic Competitiveness Grant (ACG), Federal Supplemental Educational Opportunity Grant (SEOG), Federal Perkins Loan, and Federal Direct Loans (Subsidized, Unsubsidized, and PLUS).

Throughout this section, the term “Title IV Funds” refers to Federal financial aid programs authorized under the Higher Education Act (HEA) of 1965 (as amended). 

In order to withdraw, students should contact the Registrar’s Office for the appropriate form and guidance in completing the withdrawal process.

Federal financial aid funds are awarded with the expectation that students will complete the entire period of enrollment.  With each day of class attendance, students “earn” a percentage of their aid.  When a student who has received Title IV Federal funds leaves school before the end of the term or period of enrollment, Federal law requires NCSA to calculate the percentage of “unearned” federal funds which must be returned to the Federal government.  The student’s withdrawal date is the date the student informs the school of their withdrawal by beginning NCSA’s withdrawal process through the Registrar’s Office.  (The “midpoint” of the term may be used for students who leave without formally withdrawing.) 

The percentage of the term completed is calculated by dividing the number of calendar days the student attended in the term by the total number of calendar days in the term.  This percentage corresponds with the amount of aid the student has “earned.”  The remaining portion of aid is considered “unearned.”  However, after a student has completed more than 60% of the term, the student is considered to have earned 100% of the funding. 

The responsibility to repay “unearned” Title IV aid is shared by the institution and the student in proportion to the aid each “possesses”.  (Title IV funds are considered the first resource applied to institutional charges and Title IV funds are disbursed directly to a student only after institutional charges have been covered.) 

The school must return the amount of “unearned” Title IV aid for which it is responsible by repaying the following sources in order, up to the total net amount disbursed from each source: 
1) Unsubsidized Federal Direct Stafford Loan;
2) Subsidized Federal Direct Stafford Loan;
3) Federal Perkins Loan;
4) Federal Direct PLUS Loan (Graduate Student);
5) Federal Direct PLUS Loan (Parent);
6) Federal Pell Grant;
7) Academic Competitiveness Grant;
8) FSEOG; and
8) Other Title IV Programs. 

The student must return the amount of “unearned” Title IV aid for which the student is responsible.  Funds should be repaid in the order specified above.  However, loan amounts are to be repaid by the borrower in accordance with the terms defined by the promissory note(s).  Amounts to be returned to grants by the student are protected by 50% of the original Federal grant amount.

Accordingly, NCSA will prorate institutional charges for Federal Title IV aid recipients based on the percentage of the term completed, calculated by dividing the number of calendar days the student attended in the term by the total number of calendar days in the term.  Title IV financial aid recipients will be charged for a percentage of the term equal to the percentage of aid they “earned”.  After completing over 60% of the term as calculated above, the student will have “earned” 100% of their institutional charges, as well as their Title IV financial aid. 

The Office of Student Financial Aid calculates percentages and amounts pertaining to the Return of Title IV Funds.  Non-Federal aid received by Title IV recipients will be “earned” in the same manner described above for Title IV aid.  The amounts and order in which each source of non-Federal aid is refunded is determined on a case-by-case basis.  Required returns of funds to all financial aid programs must be made prior to a refund to the student.

A student’s attendance in the term is counted from the first required day of attendance until the date of the student’s official withdrawal.  The Student Accounts Office will calculate this refund.  (Please refer to the table above.)  Exceptions to the policy may be reviewed by the Tuition and Fees Appeals Committee.

For students who received aid from Institutional sources only, the total amount of aid the student received is reduced by the same refund percentage as determined from the policy (see table above).  The amounts and order in which each source of aid is refunded is determined on a case-by-case basis by the Office of Student Financial Aid, with the guiding principle being to return funds to those programs most likely to be reallocated for use by other students.  The return of funds to various State and private programs is determined by the rules of the specific program.  Required return of funds to all financial aid programs must be made prior to the refund to the student.

Samples of typical refund and/or repayment calculations for a student who has withdrawn from NCSA can be found in the Office of Student Financial Aid or in the Student Accounts Office.