The College must return the lesser of the following:
- The amount of FSA Program funds that the student does not earn, OR
- The amount of institutional costs that the student incurred for the period multiplied by the percentage of funds that were not earned. Earned means the percentage of funds that were earned over time (during the term) by the student.
If there are additional FSA funds that must be returned, the student must return or repay, as appropriate:
- Any FSA loan funds in accordance with the terms of the loan.
- Any remaining unearned FSA grant (not to exceed 50% of the grant as an overpayment of the grant; the College currently refunds the Student Grant Overpayment on behalf of the student).
If a student earned more aid than was disbursed, the College may owe the student a Post-Withdrawal Disbursement (PWD) which must be paid as soon as possible, but no later than 180 days from the date the College determined the student withdrew (for loans) or no later than 45 days from the date the College determined the student withdrew (for grants). The College is required to notify the student in writing within 30 days of the date it determined that the student withdrew that the student is eligible for a PWD of Title IV loan funds; however, if the student (or parent in the case of a PLUS loan) is eligible to receive a PWD of loan funds, the student or parent borrower must first confirm in writing whether they accept/decline all or some of the loan funds offered as a PWD. A PWD of Federal grant funds does not require student acceptance or approval and the grant funds may be applied directly to the student’s account in order to satisfy tuition and fees, or to the student. The College will seek the student’s authorization to use a PWD for all other educationally related charges in addition to tuition and fees. All Direct Loan refunds will be made by EFT to the U.S. Department of Education and COD disbursement records will be updated when refunds are made. The student is notified by letter from the College of all Direct Loan refunds made on their behalf, including the amount, date, and loan type.
The College is required to return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student's withdrawal. The information presented above is subject to change based on Federal regulations.