Institutional Refund Policy
Federal regulations require each educational institution to have a written policy for the refund and repayment of aid received by students who withdraw from all classes during a term for which aid has been approved. These policies are effective only if the student completely terminates enrollment (e.g. voluntarily withdraws from all classes or is dismissed from all classes). After the R2T4 calculation has occurred, the financial aid office will notify the student of the results of the calculation and that the student accounts office will follow up with how the calculations have affected their student account balance.
If the student provides official notification of withdrawal, the college will base the refund on the later of the withdrawal date or the date of notification.
If the student does not provide notification of withdrawal the college will base the refund on the last date the student attended class or a class related activity (lab, study session etc.) This will be done by contacting the faculty involved.
Title IV funds include the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, TEACH Grant, Federal Subsidized/Unsubsidized Direct Loans and the Federal Parent PLUS Loan. At Bethel College the same policy will be used for state and institutional sources. Outside scholarships will follow the guidelines provided by the outside scholarship entity.
Tuition and living expenses for students who withdraw or are dismissed on or after the first day of classes during the semester will be prorated on a daily basis, including weekends, over the first 60% of the semester (the end of the ninth week). Food expense will be prorated for students up until the census date (20th day). All other fees and personal costs are not prorated and are non-refundable. No refunds are given for tuition, room or board under any circumstances of withdrawal or dismissal after the ninth week of a semester. Refunds are issued for partial drops only during the first 10 days of classes. Refunds will be issued within 45 days of the date the school determined the student withdrew.
Financial aid that is not earned (as a result of the prorated amount of time the student has been in school for the semester) will be forfeited. If a student has not earned all of the federal aid received to date at the point of withdrawal, funds will be repaid in the following order:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Direct PLUS Loan
- Federal Pell Grant
- Federal SEOG Grant
- TEACH Grant
- State Grant and Scholarship funds; Institutional aid; Outside Grant/ Scholarships.
If there is a student account balance resulting from these adjustments, the student is responsible for payment. Further details and examples can be obtained at Financial Aid/Student Accounts Office.
Credit Balances When a Student Withdraws
The school must determine the correct Title IV credit balance, taking into account the results from both the Return to Title IV calculation and the institutional refund calculation. If after the Return to Title IV funds and the institutional refund calculations are applied to the student’s account and a credit balance results, the credit balance will be disbursed as soon as possible but no later than 14 days after the date of the Return to Title IV calculation is performed.
Post-Withdrawal Disbursements
If a student has accepted Title IV, HEA financial aid by the date of the withdrawal, but the financial aid has not disbursed, the student may be eligible for a post-withdrawal disbursement. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement for the earned aid that was not received.
Under these circumstances, a R2T4 calculation must be performed to determine whether the student is actually eligible for a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, Bethel must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. You will have 14 days to respond to accept or decline the loan funds.
Bethel may automatically use all or a portion of your Post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). These grants will be disbursed within 45 days. Permission is required to use the post-withdrawal grant disbursement for all other school charges.
Students will be notified of post-withdrawal disbursement eligibility within 30 days of the date of withdrawal determination. The school must return the Title IV funds within 45 days of the date the school determines the student withdrew.