RETURN OF TITLE IV FUNDS
Only the Title IV programs are to be included in this calculation. BUCKNER BARBER SCHOOL INC. participates in the Federal Pell Grant program. Students receiving Title IV funds will be subject to these regulations.
The amount of Title IV aid earned is based on the student’s scheduled amount of time in academic attendance, and the total aid received; it has no relationship to student’s incurred institutional charges. Because these requirements deal only with Title IV funds, the order of return of unearned funds do not include funds from sources other than the Title IV programs.
Title IV funds are awarded to the student under the assumption that he/she will attend school for the entire period for which the aid is awarded. When student withdraws, he/she may no longer be eligible for the full amount of Title IV funds that were originally scheduled to be received. Therefore, the amount of Federal funds earned must be determined. If the amount disbursed is greater than the amount earned, unearned funds must be returned.
Up through the 60% point in each payment period the required pro-rata calculation is used to determine the amount of Title IV funds student has earned at the time of withdrawal. After the 60% point in the payment period, student has earned 100% of the Title IV funds specific to payment period.
BUCKNER BARBER SCHOOL INC measures progress in Clock Hours, and uses the payment period for the period of calculation.
The Calculation Formula:
Determine the amount of Title IV aid that was disbursed plus Title IV aid that could have been disbursed.
Calculate the percentage of Title IV aid earned:
a) Divide the number of clock hours scheduled to be completed in the payment period as of the last date of attendance in the payment period by the total clock hours in the payment period.
HOURS SCHEDULED TO COMPLETE
TOTAL HOURS IN PERIOD = % EARNED
b) If this percentage is greater than 60%, the student earns 100%.
c) If this percent is less than or equal to 60%, proceed with calculation.
Percentage earned from (times) Total aid disbursed, or could have been disbursed = AMOUNT STUDENT EARNED.
Subtract the Title IV aid earned from the total disbursed = AMOUNT TO BE RETURNED.
100% minus percent earned = UNEARNED PERCENT
Unearned percent (multiplied by) total institutional charges for the period = AMOUNT DUE FROM THE SCHOOL.
If the percent of Title IV aid disbursed is greater than the percent unearned (times) institutional charges for the period, the amount disbursed be used in place of the percent unearned.
If the percent unearned (times) institutional charges for the period is less than the amount due from the school, the student must return or repay one-half of the remaining unearned Federal Pell Grant.
Student is not required to return the overpayment if this amount is equal to or less than 50% of the total grant assistance that was disbursed /or could have been disbursed. The student is also not required to return an overpayment if the amount is $50 or less.