The Higher Education Act of 1965, as amended Oct. 1, 1998, allows institutions participating in any Title IV program (e.g. Pell Grant, Federal Work-study, Federal Family Educational (Stafford) Loan, etc.) to implement the policy and make a “good faith effort” to enforce it prior to the writing of the final regulations, which became effective on Oct. 7, 2000.
A-B Tech implemented the policy during the 1998-99 academic year and has applied the required return of funds formula for calculating liabilities for those students who have completely withdrawn from the college thereafter.
In general, the law focuses on the return of Title IV Funds received for the semester the student was enrolled if that student completely withdraws from the college prior to the 60 percent point of the semester.
If a student withdraws after the 60 percent point of the semester, the student will be considered to have earned all funds disbursed and no return of funds will be required unless, of course, a student had received a loan which was subject to repayment under the terms of the loan.
Any student who decides to completely withdraw from the College prior to the 60 percent of the semester and who has been disbursed Title IV funds may be required to repay a portion of those funds based on the federal formula calculation.
Students may request a copy of the policy and the calculation sheet used to determine liability from the Financial Aid Office located in the K. Ray Bailey Student Services Center.