STUDENT’S RIGHT TO CANCEL
- A student has the right to cancel an agreement for a program of instruction, without any penalty or obligations, through attendance at the first class session or the seventh calendar day after enrollment, whichever is later. After the end of the cancellation period, a student also has the right to stop school at any time; and the right to receive a pro rata refund if he or she has completed 60% or less of the scheduled quarter through the last day of attendance.
- Cancellation may occur when a student provides a written notice of cancellation at the following address: 1249 F Street, San Diego, CA 92101. This can be done by mail or by hand delivery.
- The written notice of cancellation, if sent by mail, is effective when deposited in the mail properly addressed with proper postage.
- The written notice of cancellation need not take any particular form and, however expressed, it is effective if it shows that the student no longer wishes to be bound by the enrollment agreement.
- If the enrollment agreement is canceled, the school will refund the student any money he or she paid, less an application fee not to exceed $250, and less any deduction for equipment not returned in good condition, within 45 days after the notice of cancellation is received.
FEDERAL RETURN OF TITLE IV FUNDS
The Return of Title IV Funds (R2T4) policy determines the amount of federal loan and grant (Title IV) aid a student may retain based on the amount of time spent in attendance. Title IV funds include Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal Subsidized Direct Loan, Federal Unsubsidized Direct Loan, or Federal Direct PLUS Loan. The calculation of Title IV funds earned by the student has no relationship to the student’s incurred institutional charges.
If a Title IV credit balance remains after calculation of both the institutional refund and the R2T4 policies, the balance will be paid to the student unless the student requests the additional credit be returned to federal student loans.
If a student earned more Title IV aid than was disbursed, the institution will credit earned grant funds to unpaid institutional charges and will disburse additional earned grant funds to the student. Any unpaid earned loan funds will be offered to the student to apply to unpaid institutional charges, and any additional amounts will be offered to the student. The student should accept these funds within 14 days of the date of the notification. Any post-withdrawal loan disbursement must be paid within 180 days of the student’s withdrawal.
If more funds were disbursed than are considered earned after the R2T4 calculation, refunds due from the college will be made within 30 to 45 days of the student’s effective withdrawal date. If the student received a credit balance refund for living expenses prior to the completion of the withdrawal calculations, the student may be required to return an amount of those funds. A required R2T4 may also result in a debit tuition account balance, which the student must pay to the college. Refunds are allocated in the following order:
- Federal Unsubsidized Direct Loan
- Federal Subsidized Direct Loan
- Federal Direct PLUS Loan
- Federal Pell Grant
Students will be notified of any refunds due to the Direct Loan servicer on their behalf through the mailed exit interview material. Refunds to any of the Title IV or state programs will be paid within 30 days from the date of determination.
RETURN OF FEDERAL FUNDS CALCULATION
The R2T4 amount is calculated for any Title IV recipient who withdraws before the end of the term. The calculation may result in a required return of Title IV funds to their source if the student withdrew before completing 60% of the quarter. The \percentage of Title IV to be retained is equal to the number of calendar days from the beginning of the quarter to the withdrawal date divided by the total number of calendar days in the quarter. Breaks of more than 4 days are excluded from the number of days in the formula. After the 60% point in the quarter, a student
has earned 100% of the Title IV funds he or she was scheduled to receive during the period. If a student does not complete a term but fails to follow the official withdrawal procedures, the R2T4 amount will be calculated using the midpoint of the quarter as the withdrawal date unless attendance at an academically related event is documented on a later date.
RETURN OF FEDERAL FUNDS REFUND EXAMPLE
A student withdrew on the ninth day of the term (Tuesday of the second week) of a 79-calendar-day quarter. The R2T4 calculation shows the student attended 9/79 or 11.4% of the term. Below is a breakdown of disbursed amounts prior to withdrawal and the amounts that must be returned:
Federal aid awarded and disbursed prior to withdrawal is as follows:
- $1,200 Federal Direct Loan
- $1,100 Federal Pell Grant
Total federal aid equals $2,300, and 11.4% or $262.20 was earned so $2,037.80 must be returned:
- $1,200 to Federal Direct Loan
- $837.80 to Federal Pell Grant
All students who have completed 60% or less of the course of instruction for the term are entitled to a pro rata refund. The refund shall be the amount the student paid for the instruction multiplied by a fraction (the numerator equals the number of hours of instruction which the student has not received, but for which the student has paid, and the denominator is total number of hours of instruction for which the student has paid), less a $100 administrative fee.
STATE PRO RATA REFUND POLICY
All students who have completed 60% or less of the course of instruction for the term are entitled to a pro rata refund. The refund shall be the amount the student paid for the instruction multiplied by a fraction (the numerator equals the number of hours of instruction which the student has not received, but for which the student has paid, and the denominator is the total number of hours of instruction for which the student has paid), less a $100 administrative fee. The institution shall also provide a pro rata refund of nonfederal student financial aid program moneys paid for institutional charges to students who have completed 60 percent or less of the period of attendance.
STATE PRO RATA REFUND EXAMPLE:
- Student attended 31 out of 90 hours scheduled for the term
- 31/90 is 0.344
- Term charges were $6,000 tuition and $125 operations fee = $6,125
- $6,000 x 0.344 is $2,064
- $125 x 0.344 is $43
- Total tuition and fees earned by school = $2,107
- School may retain total of $2,107 plus $100 withdrawal fee
- Account will be credited $3,836 tuition refund and $82 operation fee refund
A remaining credit balance after both the R2T4 and State Pro Rata Refund policies have been calculated will be used to repay NewSchool funds, other private sources as required, and then the student, with the exception that any Cal Grant A received in excess of tuition and fees for the quarter will be returned to the Cal Grant program.
CONFIRMATION OF RETURN ENROLLMENT AFTER WITHDRAWAL FROM PART OF A QUARTER
Students who withdraw from a course in the first part of a quarter and remain registered for a course in the second part of a quarter will be asked to confirm that they plan to return. Federal rules do not allow NewSchool to rely on previous registration if the student withdraws from the first course. An R2T4 calculation will be processed using the earlier withdrawal date for students who indicate that they will return and do not.
WITHDRAWAL FROM A QUARTER
Students withdrawing from all courses in the quarter prior to the completion of 60% of the quarter may find that funds are owed to the school as a result of the federal R2T4 formula. Students who stop engaging in academically related activities during the quarter, without officially withdrawing from the courses, are subject to the R2T4 calculation. In such cases, the last date of academically related activity, as determined by NewSchool, is used as the withdrawal date for the quarter. Prior to withdrawing from all courses in the quarter, it is suggested that students contact the Financial Aid Office to determine the amount of federal aid that must be returned. Federal student aid may not cover all unpaid charges due to NewSchool upon the student’s withdrawal.
Please contact the Financial Aid Office with any questions or concerns regarding Family Federal Educational Subsidized, Unsubsidized, or Parent PLUS Loans. If the financial aid staff is unable to resolve a student’s questions or concerns, it will be brought to the attention of the director of financial aid.
The Department of Education’s FSA Ombudsman is available if a student is unable to resolve a student loan issue and the above options have been exhausted. An ombudsman resolves disputes from a neutral, independent viewpoint. The FSA Ombudsman will informally research a borrower problem and suggest resolutions.
Students may contact their office by:
- Email: firstname.lastname@example.org
- Online assistance: http://www.ombudsman.ed.gov
- Toll-free telephone: 1-877-557-2575
- Fax: 1-606-396-4821
- Mail: FSA Ombudsman Group, PO Box 1843 Monticello, KY 42633
National Student Loan Data System Information for Students (NSLDS)
Students may access their federal loan information at the NSLDS student access website http://www.nslds.ed.gov by providing the following information:
- Social security number
- Date of birth
- FSA ID (used to complete the FAFSA on the web)
- The first two letters of the student’s last name