Sec. 484B, 485(a)(1)(F), 34 CFR 668.22 The Higher Education Amendments of 1998, Public Law 105-244
The Higher Education Amendments of 1998, Public Law 105-244 changed substantially the way funds paid toward a student’s education are to be handled when a recipient of Student Financial Aid Program funds withdraws from school.
Up through the 60% point in each payment period or period of enrollment, a pro rata schedule is used to determine how much Student Financial Aid (SFA) Program funds the student has earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the SFA Program funds.
Calculation of Amount of SFA Program Assistance Earned
The amount of SFA Program assistance earned by the student is determined by multiplying the percentage of the payment period completed by the total amount of SFA Program assistance that was disbursed or that could have been disbursed for the payment period or period of enrollment as of the day the student withdrew.
Percentage of the Payment Period or Period of Enrollment Completed
The percentage of the payment period or period of enrollment completed is the total number of calendar days in the payment period or period of enrollment for which the assistance is awarded divided into the number of calendar days completed in that period as of the day the student withdrew.
Disposition of Differences between Amount Earned and Amount Received
If the student receives less SFA Program assistance than the amount earned, the school must comply with the procedures for late disbursement specified by the Department in regulations. If the student receives more SFA Program assistance than the amount earned, the school, or the student, or both, must return the unearned funds as required, and in the order specified, below.
Return of Unearned SFA Program Funds
Northeast Alabama Community College must return the lesser of
- The amount of SFA Program funds that the student does not earn; or
- The amount of institutional costs that the student incurred for the payment period or period of enrollment multiplied by the percentage of funds that was not earned.
- The student must return or repay, as appropriate, the remaining unearned SFA Program grant funds.
Method of Return of Funds by the Student
Grant overpayments are subject to repayment arrangements satisfactory to the school, or overpayment collection procedures prescribed by the Secretary of Education. In the event of overpayment, students will be notified of terms of repayment.
Order of Return of SFA Program Funds
- Federal Student Loan
- Federal Pell Grants for the payment period for which a return of funds is required.
- Federal Supplemental Educational Opportunity Grants (FSEOG) for the payment period for which a return of funds is required.
- Other assistance under this Title for which a return of funds is required.
Typical cost of education for students attending Northeast Alabama Community College during the academic year 2023-2024 is:
| Tuition/fees (in-state) | $4,860 |
| Books/Supplies | 2,400 |
| Room/Board | 3,500 |
| Transportation | 2,400 |
| Personal/Miscellaneous | 1,000 |
| Total | $14,160 |
Northeast Alabama Community College students who register for classes, benefit from Title IV student financial aid and then withdraw are subject to the withdrawal policy as stated in the Higher Education Amendments of 1998.
Students who do not repay will be reported to the Federal government for collection.
Procedures for Students in Default of Loans
Students who owe a repayment on Title IV funds or who are in default on a federal loan are not eligible to receive Title IV funds and will have a hold placed on their file for registration and for requesting an official transcript.
Students in default of a federal loan must see the Student Financial Aid Director who will counsel the student concerning his/her financial obligations and assist the student in contacting the lender. The Student Financial Aid Director will determine whether the student can enroll or receive an official transcript once satisfactory repayment arrangements have begun.
Follow-up counseling sessions will be scheduled each semester until the student is taken out of default status. Students who refuse to adhere to the counseling schedule will not be permitted to enroll in subsequent semesters or receive an academic transcript.
When reimbursement of Title IV funds has been made or a loan has been taken out of default, the student can be reinstated for financial aid, register for classes and become eligible to receive official transcripts without review by the Student Financial Aid Director.