How Withdrawals Affect Financial Aid
Title IV recipients “earn” financial aid by attending classes. Students who withdraw or do not complete their program, may be required to return some of the aid originally awarded and/or disbursed. The amount of federal student aid earned is calculated by proration based on the number of hours successfully completed and the total scheduled hours during the payment period. If a student has successfully completed 60% of the scheduled hours in the payment period in which he/she withdrew, the student is considered to have earned all of his/her financial aid and will not be required to return any funds.
Types of Withdrawal and Withdrawal Procedures
Official Withdrawal
An official withdrawal occurs when a student provides formal notification stating his/her intent to withdraw. Students who wish to withdraw can contact the Academics Department located on the 3rd floor of the main campus. Acceptable forms of notification include in-person notification by the student or notification via phone, fax, or email when in-person notification is not possible for the student.
Unofficial Withdrawal
An unofficial withdrawal is one where the school has not received formal notification from a student of his/her intent to withdraw but the student has not attended class for 14 calendar days. If a student does not return to class upon the completion of an approved leave of absence, it will also be treated as an unofficial withdrawal. The administrative procedure mentioned above will be followed to process the withdrawal letter
Date of Determination
Ideal Institute Of Technology will consider the date of notification as the Date of Determination (DOD) in the case of official withdrawals. In the case of an unofficial withdrawal, the DOD will be the 14th calendar day if the withdrawal is due to unapproved absences of 14 calendar days. In the case of an unofficial withdrawal due to a student’s failure to return from a Leave of Absence, the DOD will be the date the student was expected to return.
Withdrawal Procedure
Students who wish to withdraw voluntarily from a program will be encouraged to complete a modification of enrollment contract in the Academics Department. The Academics Department will review the student’s attendance records, determine the coursework completed, establish the last date of attendance, determine the withdrawal date, and prepare a withdrawal letter.
The official withdrawal letter will be sent to the student via email and postal mail, and a copy will be forwarded to Student Records and the Financial Aid Department.
The Financial Aid Department will assist students in the completion of required Exit Counseling. Exit counseling is required for all students who have received Title IV Direct Loans. If the student is unable to complete the Exit Counseling on campus, the Financial Aid Department will mail the Exit Counseling materials along with the withdrawal letter.
R2T4 Process
Upon receipt of notification from the student and/or Academics Department that a student’s withdrawal is being processed, the Financial Aid Department shall review the student’s financial aid processes (i.e. packaging, awarding, and disbursement) and put a hold on further progress. Upon receipt of the withdrawal letter from the Academics Department, the Financial Aid Department shall complete the following:
Complete an R2T4 calculation worksheet using the date of determination and the date of withdrawal mentioned in the withdrawal letter
The student ledger and aid award letter shall be reviewed to collect the student’s Title IV aid information and determine whether the amount of Title IV aid for the payment period will be put into “Amount Disbursed” or “Amount that could have been disbursed” on the R2T4 worksheet.
Attendance records, verified by the Academics Department, shall be used to determine the percentage of Title IV aid earned. If the student has completed 60% of the scheduled hours, the student has earned 100% of the financial aid. If the student has not passed any exams successfully, the student will not be considered to have successfully completed the hours attended.
Unearned Title IV aid shall be posted on the student ledger as Title IV funds to be returned. Ideal Institute Of Technology will return the funds to the respective Title IV programs (sources) in the order in which they appear on the R2T4 worksheet
If the amount of aid disbursed to a student is short of the aid earned, the student will be eligible for a Post Withdrawal Disbursement (PWD). Pell Grant funds shall be disbursed upon completion of the R2T4 worksheet and notification to the student. If PWD includes loan funds, the student shall be notified promptly of their eligibility and requested to consent to the disbursement of loan funds within 14 days of the written notification. The amount of PWD shall be applied to eligible unpaid program costs. The balance of the PWD amount after eligible program costs, if any, shall be paid to the student via check
R2T4 refunds and/or PWDs shall be recorded on the student’s ledger. The student ledger shall also be updated for adjustments of fees as per the institution’s tuition refund policy, and a copy of the student ledger shall be mailed to the student.
A copy of the R2T4 worksheet shall be placed in the student’s file.
The Academics Department is responsible for processing the signed withdrawal letter as soon as possible to allow the Financial Aid Department sufficient time to complete the R2T4 calculations. R2T4 calculations must be completed within 30 days of the withdrawal and unearned aid must be returned within 45 days of the date of withdrawal.
If the student has any overpayments, the student shall be notified of the overpayment upon completion of the R2T4 calculations. Overpaid aid that is not repaid within 45 days, will be posted to the National Student Loan Data Base showing the student is ineligible for further funding.
Institutional Refund Policy
Students who withdraw prior to the completion of their program may or may not be eligible for a refund of tuition and fees. All refunds will be calculated based on the chart below. The refund policy is applicable per academic year (900 hours) and is based on the student’s last date of attendance. The administrative fee is nonrefundable.
*All refunds will be issued or paid to the student within 10 business days of the date after receipt of the cancellation notice.
**No refunds will be made after 50% of the scheduled hours have been completed. Institutional refunds based on a student’s voluntary withdrawal from Ideal Institute Of Technology will be made within 10 business days from the date of determination as defined in Ideal Institute Of Technology’s Refund Policy.
Tuition Refund Policy
Time of withdrawal
- Within 3 business days of signing contract
- Prior to the fifth day of class
- Up to 5% of scheduled hours
- After 5% and up to 10% of scheduled hours
- After 10% and up to 25% of scheduled hours
- After 25% and up to 50% of scheduled hours
- After 50% of scheduled hours
The school will retain
- Administrative fee plus 0% of tuition and fees
- Administrative fee plus 10% of tuition and fees
- Administrative fee plus 20% of tuition and fees
- Administrative fee plus 45% of tuition and fees
- Administrative fee plus 70% of tuition and fees
- Administrative fee plus 100% of tuition and fees
