Withdrawal Policy at Innovations Design Academy

innovationsdd-hairOFFICIAL/UNOFFICIAL WITHDRAW POLICY
If a student wishes to terminate their enrollment at the school, they must fill out a withdraw agreement.  The paper is available in the administration official.  The date the paper is signed by the student and turned in to the administrative office will be the official date of withdraw. All refund calculation sheets will be filled out using the official withdraw date.
Enrollment time is defined as the time elapsed between the actual starting date and the date of the Student’s official withdraw or termination from the School.  Any monies due to the Applicant or Student shall be refunded within forty-five (45) days of formal cancellation by the Student as defined in Item C, or formal termination by the School, which shall occur no more than thirty (30) days from the last day of physical attendance, or in the case of a leave of absence, the earlier of the documented date of return or the date that the student notifies the institution that he/she will not be returning.   A refund may account for any absence time that occurs during the student’s enrollment period.
The School will terminate a student within thirty (30) consecutive calendar days of the last day of physical attendance if there is no prior written notification of cancellation from the Student.  The thirtieth day (30) then constitutes the termination date and the refund must be made within forty five (45) calendar days of that formal termination date.  If the Student does not return from a leave of absence on the scheduled date of return as documented in the Student’s file, that documented date constitutes the formal termination date and the refund must be made within forty five (45) calendar days.

RETURN TO TITLE IV FUNDS (R2T4):
The law specifies how a School must determine the amount of Title IV program assistance that a student earns if he/she withdraws from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Academic Competitiveness Grants, National SMART grants, TEACH Grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.
When a student withdraws during the payment period the amount of Title IV program assistance that he/she has earned up to that point is determined by a specific formula.  If the student received (or the school or parent received on the student’s behalf) less assistance than the amount that the student earned, the student may be able to receive those additional funds.  If the student received more assistance than he/she earned, the excess funds must be returned by the school and/or the student.
The amount of assistance that the student has earned is determined on a prorata basis.  For example, if the student completed 30% of your payment period or period of enrollment, the student earns 30% of the assistance he/she was originally scheduled to receive.  Once the student has completed more than 60% of the payment period or period of enrollment, the student earns all the assistance that he/she was scheduled to receive for that period.
If the student did not receive all of the funds that he/she earned, the student may be due a Post-withdrawal dis­bursement.  If the Post-withdrawal disbursement includes loan funds, the school must get the student’s permission before it can disburse them.  The student may choose to decline some or all of the loan funds so that he/she doesn’t incur additional debt.  The school may automatically use all or a portion of the Post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school).  The school needs the student’s permission to use the Post-withdrawal grant disbursement for all other school charges.  If the student does not give his/her permission (some schools ask for this when you enroll), the student will be offered the funds.  However, it may be in the student’s best interest to allow the school to keep the funds to reduce his/her debt at the school.
There are some Title IV funds that the student was scheduled to receive that cannot be disbursed to him/her once you withdraw because of other eligibility requirements. For example, if the student is a first-time, first-year undergraduate student and has not completed the first 30 days of your program be­fore you withdrawal, the student will not receive any Direct Loan funds that they would have received had the student remained enrolled past the 30th day. If the student receives (or the school or parent receives on their behalf) excess Title IV program funds that must be returned, the school must return a portion of the excess equal to the lesser of : the institutional charges multiplied by the unearned percentage of the student’s funds, or the entire amount of excess funds. The school must return this amount even if it didn’t keep this amount of the student’s Title IV program funds. If the school is not required to return all of the excess funds, the student must return the remaining amount. Any loan funds that the student must return, he/she (or the parent for a PLUS Loan) repay in accordance with the terms of the promissory note. That is, the student makes schedule payment to the holder of the loan over a period of time.
Any amount of unearned grant funds that the student must return is called an overpayment. The maximum amount of a grant overpayment that must be repaid is half of the grant funds the student received or was scheduled to receive. The student must make arrangements with the school or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when a student withdraws are separate from any refund policy that your school may have. Therefore, the student may still owe funds to the school to cover unpaid institutional charges. The school may also charge for any Title IV program funds that the school was required to return. If a student has questions about his/her Title IV program funds, he/she 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.ed.gov.
If a Title IV financial aid recipient withdraws prior to course completion, a calculation for return of Title IV funds will be completed and any applicable returns by the school shall be paid, as applicable.

Funds are repaid in the following order:

  1. Unsubsidized Federal Direct loan
  2. Subsidized Federal Direct loan
  3. Federal Direct Parent Plus Loan
  4. Federal Pell Grant
  5. Other federal, state private or institutional financial assistance programs.

After all applicable returns to Title IV aid have been made, this refund policy will apply to determine the amount earned by the School and owed by the Student.  If the Student has received personal payments of Title IV aid, he/she may be required to refund the aid to the applicable program.

The R2T4 calculation worksheet is completed by the Financial Aid Director. The school uses the R2T4 worksheet available from the IFAP website. All refund work sheets will be calculated no later than forty five (45) days from the official date of withdraw. If refunds are due to the Department of Education, they will be refunded according to the following statement. All refunds and post-withdraw disbursements will be given with in forty five (45) days of the official withdraw date.

Any student that has completed 60% of their total school for the payment period is determined to have earned all Title Iv funds received for the payment period. If a student drops before the 60% completion for hours earned a refund worksheet will be calculated to determine how funds should be returned. The school is a clock hour program, and as such determines completion percentage based on the number of hours a student was scheduled to complete prior to withdraw date. The school policy is separate from title IV refund policy and even if no funds are due returned to Title IV students may still owe the school. Student who drops from a program will still be financially responsible for funds due the school based on the school refund calculation sheet.