Students will automatically receive a refund for any excess funds (credit balance) on their student account each semester. Refunds are processed by Student Financial Services 7-10 business days after the completion of the add/drop period each semester, approximately four weeks into the semester, following verification of student enrollment.
Since refunds are not immediately available at the beginning of each semester, students must ensure they have sufficient funds to meet living expenses, including rent for the first two months of each term (for students living off-campus), books, supplies, and personal expenses until refunds become available.
All refunds, regardless of the source, are first applied to any credit card payment(s) that were made toward the student's account during the current fiscal year (July 1—June 30). A refund check will only be issued after the full amount of any credit card payment(s) has been refunded. Refund checks are mailed to the student's home address on file in AARC unless other arrangements are made in writing with Student Financial Services. Please ensure that your address in AARC is current at all times.
When federal Title IV grant or loan assistance is disbursed, but the recipient does not complete the enrollment period, the law requires that Simmons College calculate the amount that must be returned by the school and/or student to Title IV program accounts.
The date the student initiates the withdrawal is used for calculating the percentage used in the formula for Return of Title IV funds. The number of days from the 1st class day to the withdrawal date divided by the number of days in the payment period (semester) equals the percentage of Title IV funds earned. If the withdrawal date is after the 60% point of the semester, the student has earned 100% of the Title IV funds.
If the total amount of Title IV grant and/or loan assistance that the student earned is less than the amount disbursed to or on behalf of the student, the difference between these amounts must be returned to the Title IV programs in the following order of priority (not to exceed the amount originally disbursed):
- Unsubsidized Stafford Loans
- Subsidized Stafford Loans
- PLUS Loans
- Federal Pell Grant
- Federal SEOG Grant
- Other Title IV assistance (excluding Federal Work-Study)
The school and the student share the responsibility for returning Title IV aid. The school returns "unearned" Title IV funds that have been paid to the school to cover the student's institutional charges received from Title IV grant and/or loan programs.
The school must return Title IV funds due to the federal programs no later than 30 days after the date the school determines the student withdrew.
If the student owes funds back to the Title IV programs, the institution will advise the student within 45 days of determining that the student withdrew. The student has 45 days from the date of notification from the institution to take action on the overpayment. If the student's portion of unearned Title IV funds included a federal grant, the student has to pay no more than 50% of the initial amount that the student is responsible for returning. Immediate repayment of the unearned loan amount is not required because the student repays the loan to the lender according to the terms or conditions in the promissory note. The institution will advise the lender of the student's withdrawal within 45 days of determining the student withdrew.
No additional disbursements may be made to the student for the enrollment period. If the student does not repay the amount owed to the Title IV programs or does not make satisfactory payment arrangements with the U.S. Department of Education, Simmons College will report to the National Student Loan Data System (NSLDS) that the student received an overpayment. The student loses eligibility for further Title IV aid until resolved.
NOTE: Dollar amounts are for example only and are not true current costs.
Rachel has been awarded the following package for Fall 2015:
- Federal Pell Grant - $1200
- Federal Work-Study - $1250
- Simmons Grant - $1590
- Federal Subsidized Stafford Loan - $1750
- Federal Unsubsidized Stafford Loan - $2000
Rachel withdraws from all of her classes on October 5, 2015. The total amount of Title IV Aid that is subject to the Return of Title IV Calculation is $4950. (The Federal Work-Study and Simmons Grant are not included). The percentage of Title IV aid Rachel has earned is 31.1%. The total amount of Title IV aid that was earned by the student is $1539.45.
The total amount of Title IV aid to be returned is $4950 - $1539.45 = $3410.55
Total charges for Fall 2015 semester is $8420 tuition and fees. The amount of Title IV aid unearned is 68.9%. The charges times the amount of unearned aid is $8420 X 68.9% = $5801.38
The amount of Title IV aid to be returned by the school is the lesser of the two, or $3410.55. Therefore, Simmons College would return $2000 Federal Unsubsidized Stafford Loan and $1410.55 Federal Subsidized Stafford Loan to the lender and notify the lender that the student withdrew on October 5, 2015.
The student in this example would not need to return any additional funds since the amount to be returned by the school was the same amount to be returned.