Return of Federal Funds Policy (R2T4)

Meridian University follows the Return of Federal Funds policy as required by federal regulation (Sect. 668.22 Higher Education Amendments of 1998). For those students who receive federal financial aid and find it necessary to withdraw from Meridian prior to the completion of the current quarter, the following federal policy applies:

• The focus of the policy is to return the unearned portion of the federal financial aid for the enrollment period.
• Only the amount of financial aid that has been earned by the University (based on the number of calendar days completed in the period of enrollment) will be retained. Any unearned aid will be returned by the University to the U.S. Department of Education.
• This return of aid (called Return of Federal Funds) is calculated based on either:
  • the date the student begins the official withdrawal process (by submitting their written withdrawal notice to: Student Services Team, Meridian University, 2450 Colorado Avenue, Suite 100E, Santa Monica, California 90404 or academicrecords@meridianuniversity.edu); or
  • the last date of documented attendance;
  • or, for an administrative withdrawal, the mid-point of the quarter or the last documented date of attendance.
• If a student withdraws from the University on or before the 60% point in the quarter, then the University and possibly the student shall return the percentage of unearned Title IV federal financial aid.
• The distribution of returned funds is as follows:
  • Federal Unsubsidized Stafford Loan
  • Federal Subsidized Stafford Loan
  • Grad PLUS Loan
  • State, Private, or Institutional Aid
  • The Student

In the event an R2T4 calculation results in a balance due to the student, that credit will be processed within 14-days of the date of R2T4 Calculation completion. The law specifies how Meridian must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs offered at Meridian are:

• Federal Direct Graduate Loans (Unsubsidized)
• Federal Direct Graduate PLUS Loans

Calculation of the Amount of Title IV Funds That a Student Has Earned Upon Withdrawal: If the student withdraws from the University during a payment period, the amount of Title IV program assistance the student has earned up to that point is determined by a specific formula. This amount of assistance is determined on a prorated basis. For example, if the student completed 30% of the scheduled hours in the payment period, the student earns 30% of the assistance they were originally scheduled to receive. Once the student has completed more than 60% of the scheduled hours in the payment period, they earn all the assistance that they had been scheduled to receive for that period. For the purposes of Title IV refunds, “scheduled hours” generally refers to the quarter length in total, not adjusted for the start and end dates of class, depending on the applicable federal policy. The Condition Under Which Title IV Program Funds Would Be Required To Be Returned: If the student has received more assistance than they earned, the excess funds must be returned by the school and/or the student. If the student receives excess Title IV program funds that must be returned (or should the University or parent have received these funds on the student’s behalf), the University must return a portion of the excess equal to the lesser of: The student’s institutional charges multiplied by the unearned percentage of your funds, or the entire amount of excess funds. The University must return this amount even if it didn’t keep this amount of the student’s Title IV program funds. The Condition under Which a Student Would Be Owed a Disbursement of Title IV Program Funds upon Withdrawal from the Institution: If the student, the University or the student’s parent (on the student’s behalf) received less assistance than the amount the student has earned, the student may be able to receive those additional funds as follows: If the student did not receive all of the funds they earned, the student may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, the University must get the student’s permission before it can disburse them. Students may choose to decline some or all of the loan funds so that they do not incur additional debt. The university may automatically use all or a portion of the post-withdrawal disbursement of loan funds for tuition, fees, and room and board charges (as contracted with the University). Meridian needs the student’s permission to use the post-withdrawal loan disbursement for all other school charges. If the student does not give their permission, the student will be offered the funds. However, it may be in the best interest of the student to allow the University to keep the funds to reduce the student’s debt to the University. There are some Title IV funds that the student might have been scheduled to receive that cannot be disbursed to the student once they withdraw because of other eligibility requirements. For example, first-time, first-year undergraduate students who have not completed the first 30 days of their program prior to withdrawal would not receive any Direct Loan funds that they would have received had they remained enrolled past the 30th day. How the Withdrawal Date For a Student Who Withdraws Officially or Unofficially is Determined: Students taking a Leave of Absence or withdrawing from Meridian are eligible for a tuition refund after submitting written notification to: Student Services Team, Meridian University, 2450 Colorado Avenue, Suite 100E, Santa Monica, California 90404 or academicrecords@MeridianUniversity.edu. The date of the Leave of Absence or withdrawal will be determined by the date written notification is received by Meridian’s Student Services Team. If students withdraw or request a Leave of Absence from Meridian after instruction has begun, they will receive a prorated refund of the tuition charges as stated below. If the student is administratively withdrawn, the date of administrative withdrawal is noted as the withdrawal date. Time Frame for the Return of Title IV Funds: The University has 45 days from the withdrawal date to complete an R2T4 calculation and return any funds due to the Title IV programs. If a student on a Leave of Absence does not return by the approved end date of their leave, an R2T4 calculation will be completed based on the effective date the leave of absence began. The Order in Which Title IV Program Funds Must Be Returned: The University and/or the student, if applicable, must return Title IV funds to the programs from which the student received aid during the payment period or period of enrollment as applicable, in the following order, up to the net amount disbursed from each source:

• Unsubsidized Direct Stafford loans (other than PLUS loans).
• Direct Graduate PLUS loans.

Repayment of Student Loans The student loans that remain outstanding in Step 8 (Box R) of the R2T4 calculation worksheet consist of the loans disbursed to the student (Box B) minus any loans the University repaid in Step 6, Block P. These outstanding loans are to be repaid by the student according to the terms of the student’s promissory notes. A School’s Responsibilities in The Return of Funds by The Student: A school has responsibilities that continue beyond completing the Return calculation and returning the funds for which it is responsible. Here we discuss the institution’s participation in the return of funds by the student. Students who owe overpayments as a result of withdrawals initially will retain their eligibility for Title IV funds for a maximum of 45 days from the earlier of:

• The date the school sends the student notice of the overpayment, or
• The date the school was required to notify the student of the overpayment.

Within 30 days of determining that a student who withdrew must repay all or part of a Title IV grant, the school will notify the student in writing via U.S mail that he or she must repay the overpayment or make satisfactory arrangements to repay it. In its notification, the school will inform the student of the following five items:

• The student owes an overpayment of Title IV funds.
• The student’s eligibility for additional Title IV funds will end if the student fails to take positive action by the 45th day following the date the school sent or was required to send notification to the student.

There are three positive actions a student can take to extend his or her eligibility for Title IV funds beyond 45 days:

• The student may repay the overpayment in full to the school.
• The student may sign a repayment agreement with the school. Note: Two years is the maximum time a school may allow for repayment.
• The student may sign a repayment agreement with the Department.

*****The student should contact the school to discuss his or her options***** Consequences for Not Following up on the Notification: If the student takes no positive action during the 45-day period, the school will report the overpayment within a few days of the end of the 45-day period to NSLDS on the NSLDS Professional Access Web site under the AID tab, “Overpayment List” menu option after the 45-day period has elapsed If the student fails to take one of the positive actions during the 45-day period, the student’s overpayment will be reported immediately to the NSLDS and referred to the Debt Resolution Services for collection. When a student receives additional funds during the 45-day period of extended eligibility: Students who owe overpayments as a result of withdrawals generally will retain their eligibility for Title IV funds for a maximum of 45 days from the earlier of (a) the date the school sends the student notice of the overpayment, or (b) the date the school was required to notify the student of the overpayment. A student who receives Title IV funds within that period of extended eligibility and then fails to return the overpayment or make repayment arrangements becomes ineligible for additional Title IV program funds on the day following the 45-day period. However, any Title IV program funds received by the student during the 45-day period were received while the student was eligible. Therefore, those Title IV funds do not have to be returned (unless the student withdraws a second time). A student who loses his or her eligibility for Title IV funds at the expiration of the 45-day period will remain ineligible for additional Title IV funds until the student enters into a repayment agreement with the Department. If, at any time, a student who previously negotiated a repayment arrangement fails to comply with the terms of his or her agreement to repay, that student immediately becomes ineligible for additional Title IV funds. The school will also notify the student in writing via U.S. mail using a Refund Calculation worksheet, of the amounts of aid that were retained by the school for institutional charges and the amount(s) of aid that will be refunded by the school to each Title IV program. The student will also be notified of the amount of Title IV loans they will owe after all applicable refunds have been made, the requirement for the student to complete exit counseling, when the student will be responsible to start repayment of their student loans and who they may contact for further assistance or to report any changes to their personal information. The requirements for Title IV program funds when you withdraw are separate from any Institutional Refund Policy that your school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any Title IV program funds that the school was required to return. If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Informa­tion is also available on Student Aid on the Web at www.studentaid.gov. Rights and Responsibilities of the Student: Students are responsible for completing all forms accurately and by the published deadlines. They are also responsible for submitting information requested to the Financial Aid Office in a timely manner. Along with the information, students are responsible for keeping the Financial Aid Office up to date with any changes to name, address, and marital status. In addition, students should notify the Financial Aid Office of any assistance from non-college sources such as scholarships, loans, and educational benefits. Students are responsible for informing the Financial Aid Office of any enrollment changes such as requests for leave of absences. Lastly, but not limited to, students are responsible for maintaining satisfactory academic progress, and re-applying for aid each year.

Transcripts

All transcripts issued by Meridian University adhere to the Family Educational Rights and Privacy Act of 1974. Transcripts are issued upon written request by the student authorizing the release of information.