Return to Title IV

If a student has received Federal Direct Loans or Federal Pell Grant funds during his or her period of enrollment and is withdrawn or withdraws from the institution, an R2T4 calculation will be performed. If a student has not yet been awarded but has a valid ISIR for the current awarded year, an R2T4 calculation is performed to determine a potential Post-Withdrawal Disbursement. The date of withdrawal is always the last date of attendance.
Attendance at California Intercontinental University includes:

• submitting an academic assignment
• taking an exam
• participating in an online discussion about academic matters

Attendance is not:

• logging into your course without active participation
• participating in academic counseling or advisement.

Returning Unearned Funds

Institutions are required to determine the percentage of Title IV aid earned by the student and to return the unearned portion to the appropriate aid program. This percentage is determined by the percentage of the enrollment period completed by the student.
The return of funds policy consists of the following steps:

• Determine the percentage of the enrollment period completed by the student
• Days Attended ÷ Days in Enrollment Period = Percentage Completed
• If the calculated percentage exceeds 60 percent, then the student has earned all Title IV aid for the enrollment period
• Apply the percentage completed to the Title IV aid awarded to determine the student’s eligibility for aid prior to the withdrawal
• Total Aid Disbursed X Percentage Completed = Earned Aid
• Determine the amount of unearned aid to be returned to the appropriate Title IV aid program
• Total Disbursed Aid – Earned Aid = Unearned Aid to be Returned

If the aid already disbursed equals the earned aid, no further action is required. If the aid already disbursed is less than the earned aid, a late disbursement will be made to the student. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program. Distribute the responsibility to return funds between the institution and the student. California Intercontinental University and the student are both responsible for returning unearned funds to the appropriate programs in specific loan/grant order.
The institution must return the lesser of:

• the total amount of unearned aid or
• institutional charges multiplied by the unearned percentage

Amounts that must be returned will first be applied to federal loans and then to grants. Loan borrowers will be permitted to repay loans based on the terms of the promissory note. The student will also be billed for any amount due to California Intercontinental University resulting from the student’s withdrawal. If a student owes any money to the school resulting from the return of federal aid funds, the student will receive a bill from the Business Office.
Title IV aid is returned in the following order:

1. Unsubsidized Federal Direct
2. Stafford Loans Subsidized Federal
3. Direct Stafford Loans
4. Federal Direct PLUS Loans
5. Federal Pell Grants
6. Federal Supplemental Educational Opportunity Grant (FSEOG)
7. Iraq and Afghanistan Service Grant

Any student with an account credit balance will be refunded to the funding source in the order outlined above. The student’s grace period (if applicable) for loan repayments for Federal Unsubsidized and Subsidized Direct Stafford Loans will begin on the day of the withdrawal from California Intercontinental University. The student should contact the servicer if he or she has questions regarding his or her grace period or repayment status. The student’s eligibility for future financial aid may change based on his or her withdrawal from California Intercontinental University.

Student Recovery Tuition Fund

The State of California established the Student Tuition Recovery Fund (STRF) to relieve or mitigate economic loss suffered by a student in an educational program at a qualifying institution, who is or was a California resident while enrolled, or was enrolled in a residency program, if the student enrolled in the institution, prepaid tuition, and suffered an economic loss. Unless relieved of the obligation to do so, you must pay the state-imposed assessment for the STRF, or it must be paid on your behalf, if you are a student in an educational program, who is a California resident, or are enrolled in a residency program, and prepay all or part of your tuition. You are not eligible for protection from the STRF and you are not required to pay the STRF assessment, if you are not a California resident, or are not enrolled in a residency program. It is important that you keep copies of your enrollment agreement, financial aid documents, receipts, or any other information that documents the amount paid to the school. Questions regarding the STRF may be directed to the Bureau for Private Postsecondary Education, 2535 Capitol Oaks Drive, Suite 400, Sacramento, CA 95833, 916-431-6959 or 888-370-7589. To be eligible for STRF, you must be a California resident or enrolled in a residency program, prepaid tuition, paid or deemed to have paid the STRF assessment, and suffered an economic loss as a result of any of the following:

1. The institution, a location of the institution, or an educational program offered by the institution was closed or discontinued, and you did not choose to participate in a teach-out plan approved by the Bureau or did not complete a chosen teach-out plan approved by the Bureau.
2. You were enrolled at an institution or a location of the institution within the 120-day period before the closure of the institution or location of the institution, or were enrolled in an educational program within the 120-day period before the program was discontinued.
3. You were enrolled at an institution or a location of the institution more than 120 days before the closure of the institution or location of the institution, in an educational program offered by the institution as to which the Bureau determined there was a significant decline in the quality or value of the program more than 120 days before closure.
4. The institution has been ordered to pay a refund by the Bureau but has failed to do so.
5. The institution has failed to pay or reimburse loan proceeds under a federal student loan program as required by law or has failed to pay or reimburse proceeds received by the institution in excess of tuition and other costs.
6. You have been awarded restitution, a refund, or other monetary award by an arbitrator or court, based on a violation of this chapter by an institution or representative of an institution, but have been unable to collect the award from the institution.
7. You sought legal counsel that resulted in the cancellation of one or more of your student loans and have an invoice for services rendered and evidence of the cancellation of the student loan or loans.

To qualify for STRF reimbursement, the application must be received within four (4) years from the date of the action or event that made the student eligible for recovery from STRF. A student whose loan is revived by a loan holder or debt collector after a period of non-collection may, at any time, file a written application for recovery from STRF for the debt that would have otherwise been eligible for recovery. If it has been more than four (4) years since the action or event that made the student eligible, the student must have filed a written application for recovery within the original four (4) year period, unless the period has been extended by another act of law. However, no claim can be paid to any student without a social security number or a taxpayer identification number.

Post Withdrawal Disbursements

Any post-withdrawal disbursement due must meet the current required conditions for late disbursements. A school is required to make (or offer as appropriate) post-withdrawal disbursements to eligible students. A post-withdrawal disbursement must be made within 180 days of the date the institution determines that the student withdrew. The amount of a post-withdrawal disbursement is determined by following the requirements for calculating earned FSA and has no relationship to incurred educational costs.
Procedures:

• If a student is eligible for a post-withdrawal of a federal grant, it will be disbursed within 45 days of the date of determination of withdrawal
• A student (or parent, in the case of a Direct PLUS loan) is notified of eligibility for a post-withdrawal disbursement of a Federal loan within 30 days of the withdrawal date by email and must respond within fourteen days
• If the student (or parent) accepts the post-withdrawal disbursement of a federal loan, it must be made as soon as possible but no later than 180 days of the withdrawal date
• The Financial Aid Office will track this notification and make appropriate updates in the system as necessary
• When the student’s (or parent’s) response is received it will be updated in the system
• The priorities for disbursement are grants first; paid to outstanding institutional charges before being paid directly to the student (or parent)

Examples:

1. It is Jennifer’s first semester, and she is enrolled in the Business Administration program. She is a full-time student enrolled in 12 credits in the semester (18 weeks /126 days). On the 2nd day of week 7, Jennifer withdrew from her courses to pursue an acting career. Jennifer attended California Intercontinental University for 51 days ((7 x 7) + 2 = 51) in an enrollment period of 126 days; therefore, she completed 40.47% (51/126) of her enrollment period. During the current payment period, Jennifer was disbursed a Pell grant for $1,500 and a subsidized loan for $1,500, a total of $3,000. Her earned aid is $1215 (40.47% x 3,000), whereas her unearned aid is $1,785 ($3,000-$1,215). After the institutional refund is applied and unearned Pell Grant funds are returned Jennifer will have to repay the disbursed and earned subsidized loan amount funds. She may also have to repay any disbursed unearned loan funds to California Intercontinental University.
2. It is John’s second semester and he is a full-time student enrolled in 12 credits in the semester. On the 5th day of week 11, it was the last time John attended class. John attended California Intercontinental University for 75 days (11 x 7) + 5 = 82) in an enrollment period of 126 days; therefore, he completed 65.08% (82/126) of his enrollment period. During the current payment period, John was disbursed a Pell grant for $900, a subsidized loan for $2,500, and an unsubsidized loan for $1,000, a total of $4,400. Because he attended for at least 60% of the enrollment period, his total earned aid is $4,400, and there is no unearned aid.