Financial Aid & Credit Balance Refunds
Students will automatically receive a refund for any excess funds (credit balance) on their student account each semester. Simmons University will not hold credit balances to be applied to subsequent semesters. 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). For instructions on how to set up direct deposit for your refund, please see the section below title "Direct Deposit Student FAQ". If direct deposit is not setup, a refund check will be mailed to the student's home address on file in Workday. Please ensure that your address in Workday is current at all times.
Return of Title IV Refund
When federal Title IV grant or loan assistance is disbursed, but the recipient does not complete the enrollment period, the law requires that Simmons University 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 along with the calendar days in the payment period are used to calculate the percentage in the formula for Return of Title IV funds. During system setup for the year, the start and end dates of each academic period are validated against Simmons’ approved academic calendar and all scheduled breaks of at least five consecutive days are excluded.
Official Withdrawal: Students should officially withdraw by completing the electronic wufoo form. The data from this form is sent to all of the appropriate offices on campus that play a part in processing a student’s withdrawal. The date the student files the form is used as the date of the withdrawal as it serves as the date the student notified the institution of their intent to withdraw.
Unofficial withdrawal: In the rare case that a student withdraws from the University without going through the official withdrawal process, we monitor student attendance both on campus and online and the Registrar Office will report any unofficial withdrawals as of the date we became aware that the student was no longer enrolled.
The number of days from the 1st day of the term 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
- Direct PLUS Loans
- Federal Pell Grant
- Federal SEOG Grant
- Iraq Afghanistan Service Grant
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 45 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 30 days of determining that the student withdrew. The student has 45 days from the date of notification from the institution to take action on any grant over payment. 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.
No additional disbursements (aside from a PWD) 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 University will report to the National Student Loan Data System (NSLDS) that the student received an over payment. The student loses eligibility for further Title IV aid until resolved.
Example
NOTE: Dollar amounts are for example only and are not true current costs.
Rachel has been awarded the following package for Fall 2021:
- Federal Pell Grant - $1200
- Federal Work-Study - $1250
- Federal Subsidized Stafford Loan - $1750
- Federal Unsubsidized Stafford Loan - $2000
Rachel withdraws from all of her classes on October 5, 2021. The total amount of Title IV Aid that is subject to the Return of Title IV Calculation is $4950. 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 2021 semester was $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 University would return $2000 Federal Unsubsidized Stafford Loan and $1410.55 Federal Subsidized Stafford Loan to the federal government. Simmons will also report the withdrawal effective October 5, 2021 to the National Student Clearinghouse.
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 in total.
Post Withdrawal Disbursement
If a student’s loans were originated but did not disburse and they were enrolled at least half time when they ceased to be enrolled, they may be eligible for a post withdrawal disbursement (PWD). (Note: The student may need to resolve an issue that prevented loans from disbursing. For example, if they did not complete their loan documentation but the loan had originated, regulations state the student can complete them after the last day of attending.)
We will communicate with the student, or parent in the case of a parent PLUS loan, and inform them that they can accept all, a portion, or none of the PWD. The normal timeframe we allow them is 14 days to inform us of their wishes. If they do not meet our deadline, then the loan funding is cancelled. We can, on a case by case basis, extend that deadline as long as the overall length is within scope of the federal regulations.
If the student has completed their loan documents but does not respond to the offer of the PWD, the loan will be cancelled.
Using the same example from above:
Rachel withdraws from all of her classes on October 5, 2021 but at the time she withdraws, her loans had not yet disbursed. The total amount of Title IV aid that was earned by Rachel is $1539.45 but the total aid that was disbursed was $1200 (her Pell Grant).
The total amount of Title IV aid eligible for a post withdrawal disbursement is $1539.45- $1200 = $339.45
The student would receive a letter from the Financial Aid Office stating the details of her return calculation and letting her know about her eligibility for a post withdrawal disbursement. She would have 14-days in which to confirm that she would like her post withdrawal disbursement.
Refunds
In the case of a student who has earned Title IV funds that exceed their charges (more common when there are 100% earned funds) the school is required to perform the return calculation and then within 14 days of the date the institution performed the calculation, pay any remaining credit balance as a refund to the student. There is a weekly process of verifying and generating all student refunds which will then be mailed to the student. This ensures we remain compliant with the 14-day timeframe.
Using the example above
If any part of the $1,539.45 Title IV disbursement exceeded the institutional charges, the student would be eligible for a titled IV refund. This would automatically be generated and sent to the student within the 14-day timeframe.
Notification
All students who take an institutional leave of absence or withdraw and have Title IV federal funds will receive a letter detailing; the calculation performed, the amount of aid earned, and the amount of aid to either be returned or disbursed in a post withdrawal disbursement. Students will receive this email at their Simmons University email account. The communication will also outline the requirements to receive a post withdrawal disbursement; cancel a loan; as well as the necessary exit counseling notifications.
Where do I add my bank account information for direct deposit?
Log in to Workday and:
- Click on the Finances > Set Up Payment Elections (under My Account on right hand side).
- Click Add.
- Enter your bank account information and click OK . Make sure you enter your checking or savings account number and not your debit card number
- Your payment elections should be saved and viewable in Finances > Set Up Payment Elections for pay type "student refund".
* It is essential that you enter your checking account information accurately. If not, you will not receive your direct deposit and a check will be issued instead.
After I add my bank account information how quickly will I receive my first refund via direct deposit?
Once you have added your bank account information in the payment elections section of Workday, all future credit balances will be issued via direct deposit from that point forward.
How long will it take for the direct deposit to show in my bank account?
1-4 business days.
What if my refund is payable to a third party? Will it be refunded via direct deposit?
No. All refunds payable to anyone other than the student will be issued via paper check.
What happens if my direct deposit doesn't come through? How will I be notified?
If Simmons University was unable to successfully deliver your refund via direct deposit, you will receive an email from [email protected] informing you of the issue and a paper check will be mailed to the home address on file within 10 business days. If you have not seen your direct deposit reflected in your bank account after 5 business days, and you have not received a notification from SFS that a paper check is being issued instead, please contact SFS to make an inquiry.
Direct Loan funds that are returned within 120 days of the disbursement are treated as a partial or full cancellation, with the appropriate adjustment of the loan fee and interest. If you have received a refund and would like to cancel all or a portion of your Direct Loan, you are responsible for returning the money directly to your loan servicer. Contact Applicant Services at 1-800-557-7394 or log in to studentaid.gov to find out who your loan servicer is. Always use the term "cancellation" or "cancel" to ensure that the interest and fees are removed as well. If you have received a refund from a private loan and would like to cancel all or a portion of your loan, please contact the private loan servicer directly for instructions.