College Refund Policy
The following regulations govern refunds when proper procedures for withdrawal as outlined in this publication have been adhered to:
Food (Board) Charges - A student who withdraws before the end of a term is entitled to a refund of half of the unexpired portion of the food charge.
Room Charge - A student who withdraws during the first two weeks of a term is entitled to a refund of half the room charge.
- Refunds are made approximately two weeks after notice of withdrawal is received and disbursed in the following order:
- Repayment of federal and state loans and grants made for the current term;
- Repayment of aid granted from Berea College funds;
- Repayment of all amounts due Berea College;
- Balance paid to student.
Any remaining balance due Berea College must be paid before a transcript is issued. Diplomas will not be issued to students with financial obligations remaining on their Student Account.
Federal Refund Policy
A portion of Title IV grant or loan funds (except Federal Work Study) must be returned to the Title IV programs upon the recipient’s withdrawal from school.
As determined by the school, the date the student withdraws, is the date: 1) the student began the withdrawal process prescribed by the school; 2) the student otherwise provided the school with official notification of intent to withdraw; or 3) the midpoint of the payment period or period of enrollment for which Title IV assistance was disbursed (for the student who does not begin the school’s withdrawal process or notify the school of the intent to withdraw).
If the school determines the student did not begin the withdrawal process or notify the school of the intent to withdraw— due to illness, accident, or other such circumstances beyond the student’s control— the school may determine the appropriate withdrawal date.
Percentage of the Payment Period or Period of Enrollment Completed
The percentage of the payment period or period of enrollment for which assistance was awarded that was completed is determined by dividing the total number of calendar days comprising the payment period or the period of enrollment for which assistance is awarded into the number of calendar days completed in that period as of the day the student withdrew.
Calculation of Title IV Assistance Earned
To calculate the amount of Title IV assistance earned by a student, the school first must determine the percentage of Title IV assistance the student earned. Up through the 60-percent point in time, the percentage of assistance earned is equal to the percentage of the payment period or period of enrollment for which it was awarded that was completed as of the day the student withdrew. If the student withdraws after the 60-percent point, then the percentage earned is 100 percent. That earned percentage is applied to the total amount of Title IV grant and loan assistance disbursed (and that could have been disbursed) to the student, or on the student’s behalf, for the payment period or period of enrollment for which it was awarded as of the day the student withdrew.
Calculation of Title IV Assistance Not Earned
The amount of Title IV grant and loan assistance not earned by the student is calculated by determining the complement of the percentage of assistance the student earned and applying it to the total amount of grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student’s behalf, for the payment period or period of enrollment as of the day the student withdrew.
Differences between Amounts Earned and Amounts Received
The school will follow the regulations for late disbursement if the student received less grant or loan assistance than the amount earned. If the student has received more grant or loan assistance than the amount earned, then the unearned funds shall be returned by the school or the student, or both.
Responsibility of the School
The school shall return the lesser of the unearned amount of Title IV assistance or an amount equal to the total institutional charges the student incurs for the payment period or period of enrollment for which the assistance was awarded, multiplied by the unearned percentage of awarded Title IV grant and loan assistance.
Responsibility of the Student
The student shall return unearned Title IV assistance minus the amount the school returns.
A student (or parent for PLUS loans) repays the calculated amount attributable to a Title IV loan program according to the loan’s terms. A student repays a Title IV grant program subject to repayment arrangements satisfactory to the school or the U.S. Secretary of Education’s overpayment collection procedures. A student shall not be required to return 50 percent of the unearned grant. The College will bill the student for the amount owed and collect repayment. A student who fails to repay may be referred to the U.S. Department of Education or other appropriate agency for collection. The student may be ineligible for further federal student aid funds.
Order of Return of Title IV Funds
Excess funds returned by the school or student are credited to outstanding Title IV loan balances for the student or made on the student’s behalf for which a return of funds is required. Excess funds must be credited to outstanding balances in the following order:
- Direct William D. Ford loans
- Federal Perkins loans
- Direct William D. Ford PLUS loans
If excess funds remain after repaying all outstanding loan amounts, the remaining amount is credited to grant programs in the following order:
- Federal Pell Grants
- Federal SEOG
- Other Title IV assistance for which a return of funds is required
Refund Policy and Leaves of Absence
An approved Leave of Absence is not to be treated as a withdrawal and no return of Title IV funds is calculated. A student may take a Leave of Absence from a school for not more than a total of 180 days in any 12-month period. The student must have followed the institution’s policy in requesting a Leave of Absence (see “Leaves of Absence” in the Enrollment and Registration section for more information), and the school must have approved the student’s request in accordance with its policy. If the student does not return at the expiration of an approved Leave of Absence, the school calculates the amount of Title IV grant and loan assistance that is to be returned based on the date the student began the leave.