Refund Policy Comparison

Students on Federal Financial Aid who drop all their classes in a term are governed by two refund policies. The school’s policy applies to tuition and fee charges (not all fees are refundable). The R2T4 federal policy applies to how much Federal Financial Aid (Pell, FSEOG, Stafford Loans, PLUS loans) a student has earned at the time they dropped all their classes. Refunds are made to the DOE or lender. State programs like TPEG, TEXAS Grant and TEOG are not affected. Once 60% of the semester has elapsed (66 days in our examples) the student has earned or is allowed to keep 100% of the financial aid posted to his account. Effective on 7/1/06 amounts the student owes back to the financial aid program that do not equal or exceed 50% of the original amount posted to the account will not have to be paid back by the student.

Example 1

A student receives 2000 in Pell Grant and drops classes at various times through the semester. The student has been charged $500 for tuition and fees.

Drop Date Tuition and Fee Financial Aid School Student pays new overpayment
Refund Amt. Refund Amount Pays to program to program (effective 7/1/06)
500* ref. % per policy 2000 * (110 days / 110) 500 * (110 days / 110) Col D – Col E
day 0 Jan.16 500 0 aid received 0 0 0
day 10 Jan. 26 350 1818 455 1363 1363
day 22 Feb. 7 125 1600 400 1200 1200
day 31 Feb. 16 0 1436 359 1077 1077
day 49 Mar. 6 0 1109 277 832 0
day 59 Mar. 16 0 927 232 695 0
day 80 Apr. 6 0 0 0 0 0
total term = 110 days

Example 2
A student receives 2000 in Pell Grant and drops classes at various times through the semester. The student has been charged $500 for tuition and fees and $1000 for books were charged to her account.

Drop Date Tuition and Fee Financial Aid School Student pays new overpayment
Refund Amt. Refund Amount Pays to program to program
500* ref. % per policy 2000 * (110 days / 110) 1500 * (110 days / 110) Col D – Col E
day 0 Jan.16 500 0 aid received 0 0 0
day 10 Jan. 26 350 1818 1364 454 0
day 22 Feb. 7 125 1600 1200 400 0
day 31 Feb. 16 0 1436 1077 359 0
day 49 Mar. 6 0 1109 832 277 0
day 59 Mar. 16 0 927 695 232 0
day 80 Apr. 6 0 0 0 0 0
total term = 110 days

These examples assume that the student had not already received a check back for the credit balance on their account. Had a refund already been made, the student would have to return enough of it to bring the balance down to the final balance shown in each example.

Example 1 Example 2
January 26 drop
T & F 500 T & F 500
Fin Aid -2000 Books 1000
Due student -1500 Pell -2000
T &F refund -350 Due student -500
Pell back to DOE 455 T &F refund -350
-1395 Pell back to DOE 1364
Student returns to Pell 1363 514
Refund to Student -32 Student returns to Pell 454
Balance Due 968
Feb. 7 drop
T & F 500 T & F 500
Fin Aid -2000 Books 1000
Due student -1500 Pell -2000
T &F refund -125 Due student -500
Pell back to DOE 400 T &F refund -125
-1225 Pell back to DOE 1200
Student returns to Pell 1200 575
Refund to Student -25 Student returns to Pell 400
Balance Due 975
Feb. 16 drop
T & F 500 T & F 500
Fin Aid -2000 Books 1000
Due student -1500 Pell -2000
T &F refund 0 Due student -500
Pell back to DOE 359 T &F refund 0
-1141 Pell back to DOE 1077
Student returns to Pell 1077 577
Refund to Student -64 Student returns to Pell 359
Balance Due 936
March 6 drop
T & F 500 T & F 500
Fin Aid -2000 Books 1000
Due student -1500 Pell -2000
T &F refund 0 Due student -500
Pell back to DOE 277 T &F refund 0
-1223 Pell back to DOE 832
Student returns to Pell 832 332
Refund to Student -391 Student returns to Pell 277
Balance Due 609
March 16 drop
T & F 500 T & F 500
Fin Aid -2000 Books 1000
Due student -1500 Pell -2000
T &F refund 0 Due student -500
Pell back to DOE 232 T &F refund 0
-1268 Pell back to DOE 695
Student returns to Pell 695 195
Refund to Student -573 Student returns to Pell 232
Balance Due 427
April 6 drop
T & F 500 T & F 500
Fin Aid -2000 Books 1000
Due student -1500 Pell -2000
T &F refund 0 Due student -500
Pell back to DOE 0 T &F refund 0
-1500 Pell back to DOE 0
Student returns to Pell 0 -500
Refund to Student -1500 Student returns to Pell 0
Refund to Student -500

Example 3
A student receives 2000 in Pell Grant and drops classes at various times through the semester. The student has been charged $1500 for tuition and fees and has charged $1000 in books.

Drop Date Tuition and Fee Financial Aid School School pays
Refund Amt. Refund Amount charges not earned lower amount
500* ref. % per policy 2000 * (110 days / 110) 2500 * (110 days / 110) of Col D or E
day 0 Jan.16 1500 0 aid received 0 0
day 10 Jan. 26 1050 1818 2275 1818
day 22 Feb. 7 375 1600 2000 1600
day 31 Feb. 16 0 1436 1795 1436
day 49 Mar. 6 0 1109 1385 1109
day 59 Mar. 16 0 927 1160 927
day 80 Apr. 6 0 0 0 0
total term = 110 days

Student does not owe any portion to the programs because the initial award was not enough to cover the whole initial balance.

Jan. 26 drop Mar 6 drop
T & F 1500 T & F 1500
Books 1000 Books 1000
Pell -2000 Pell -2000
Due from student 500 Due from student 500
T &F refund -1050 T &F refund 0
Pell back to DOE 1818 Pell back to DOE 1109
1268 1609
Student return to Pell 0 Student return to Pell 0
Balance Due 1268 Balance Due 1609
Feb. 7 drop Mar 16 drop
T & F 1500 T & F 1500
Books 1000 Books 1000
Pell -2000 Pell -2000
Due from student 500 Due from student 500
T &F refund -375 T &F refund 0
Pell back to DOE 1600 Pell back to DOE 927
1725 1427
Student return to Pell 0 Student return to Pell 0
Balance Due 1725 Balance Due 1427
Feb. 16 drop Apr 6 drop
T & F 1500 T & F 1500
Books 1000 Books 1000
Pell -2000 Pell -2000
Due from student 500 Due from student 500
T &F refund 0 T &F refund 0
Pell back to DOE 1436 Pell back to DOE 0
1936 500
Student return to Pell 0 Student return to Pell 0
Balance Due 1936 Balance Due 500
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