Federal regulations require each university participating in the Title IV Federal Student Aid Programs to have a written policy for the refund and repayment of federal aid received by students who withdraw during a term for which payment has been received. This policy is effective only if the student completely terminates enrollment before completing more than 60% of the enrollment period.
The amount of Title IV aid that a student must repay is determined via the Federal Formula for Return of Title IV funds as specified in Title IV, Part G, Section 485 Institutional Refunds, as amended Section 484B of the Higher Education Act. This law also specifies the order of the return of the Title IV funds to programs from which they were awarded.
A repayment may be required when cash has been disbursed to a student from financial aid funds in excess of the amount of aid the student earned during the term. The amount of Title IV aid earned is determined by multiplying the total Title IV aid (other than Federal Work Study) for which the student qualified by the percentage of time during the term that the student was enrolled.
If less aid was disbursed than was earned, the student may receive a late disbursement for the difference. If more aid was disbursed than was earned, the amount of Title IV aid that must be returned (i.e. that was unearned) is determined by subtracting the earned amount from the amount actually disbursed.
The responsibility for returning unearned aid is allocated between ACTCM and the student according to the portion of disbursed aid that could have been used to cover ACTCM student charges and the portion that could have been disbursed directly to the student once university charges were covered. ACTCM will distribute the unearned aid back to the Title IV programs as specified by law. The student will be billed for the amount the student owes the Title TIV programs and ACTCM.
In some cases, a student may be eligible to receive a "post-withdrawal" disbursement after the student completely withdraws from school when the amount of aid earned is less than the amount of aid disbursed. In such cases, the Financial Aid Office will notify the student of the "post-withdrawal" disbursement via an award letter. The award letter must be returned to the Financial Aid Office within fourteen (14) days or the "post-withdrawal" disbursement will be cancelled.
If a student withdraws from ACTCM, Title IV funds must be returned in the following order: Federal Unsubsidized Stafford Loan, Federal Subsidized Stafford Loan, Other Federal Funded Programs.
What does this mean for you?
If you withdraw from ACTCM, the Financial Aid Office will calculate the amount of Federal Stafford, Federal Grad Plus Loans, and Federal Perkins Loan funds that you have "earned" on the basis of your enrollment until withdrawal. The "unearned" amount that has been used to pay tuition will be refunded to your lender by ACTCM to reduce your outstanding loan balance. ACTCM will then notify your lender that you are no longer enrolled as of the date of withdrawal.
The ACTCM tuition refund policy, as published in the catalog and the Quarterly Enrollment Agreement, remains unchanged. However, because the calculation of the tuition refund and the calculation of the amount of "earned" and "unearned" Federal Stafford Loan funds are no longer tied together by federal law as in the past, there may be a tuition balance owing as a result of withdrawal. Before you withdraw, please be sure you understand the potential financial consequences of withdrawal.