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