Finances Cancellation Withdrawal Refund Policy

Finances Cancellation Withdrawal Refund Policy

Cancellation, Withdrawal and Refund Policy

A student may cancel his or her course(s) by following the procedures outlined below. Any money due to the student will be refunded within 30 days. The cancellation date is the date that the request is received by the University.

The student has the right to cancel his or her courses and receive a full refund, less any non-refundable fees as listed on this Enrollment Agreement, credit evaluation fees, and/or application fees, prior to the scheduled session start date as well as within the first seven days of the session.

Any course that has not reached the start of the second week of the session can be cancelled. If the course duration has already reached the second week of the session, a withdrawal must occur. Refunds for withdrawals are discussed under "Withdrawal and Refund" below. If the course(s) is (are) cancelled, AAU requests that any and all course materials be refused and/or returned to:

Allied American University
Attn: Returns Department
22952 Alcalde Drive
Laguna Hills, CA 92653

All time references refer to Pacific Time.

The request to cancel can be made in any manner; however, in order to ensure the most prompt processing, we ask that cancellation requests be made via email to the following address: registrar@allied.edu.

WITHDRAWAL AND REFUND FOR STUDENTS USING MILITARY TUITION ASSISTANCE (TA)

Per DOD instruction (DoDI) 1322.25 any student benefiting from Tuition Assistance, who withdraws from his or her course (s) after the 1st seven days of a session (Week 1) will be subject to a pro-rated tuition charge through the first 60% portion each session. Students withdrawing after the 60% point will not be entitled to refund. The date of withdrawal for purposes of tuition refunds shall be the last date of recorded attendance.

Tuition charges will be calculated on a per day basis. The amount of tuition owed will be calculated by taking the total tuition charges, divided by the total number of days in the session, multiplied by the number of days elapsed through the last date of recorded attendance.

Example 1:
Total Tuition Charges: $1,860.00
Number of days in attendance: 28
Number of days in the session: 56

28 ÷ 56 = 50%, $1860.00 x 50% = $930.00 tuition charged.

Example 2:
Total Tuition Charges: $930
Number of days in attendance: 34
Number of days in the session: 56

34 ÷ 56 = 60%, $930.00 x 100% = $930.00 tuition charged.

WITHDRAWAL AND REFUND FOR STUDENTS NOT USING MILITARY TUITION ASSISTANCE (TA)

To offset AAU’s administrative costs, in addition to any non-refundable fees, any student who withdraws from his/her course(s) after the first seven days of a session (Week 1) will be subject to a one-time non-refundable 20% portion of tuition related to those courses, up to a maximum of $200. Notwithstanding this 20%/$200 non-refundable portion of tuition, a refund of the remaining tuition will be calculated as follows:

During Week 2 80% of the remaining tuition will be refunded
During Week 3 65% of the remaining tuition will be refunded
During Week 4 50% of the remaining tuition will be refunded
During Week 5 40% of the remaining tuition will be refunded
After Week 5 0% of the remaining tuition will be refunded

It is your responsibility to contact Student Affairs to determine what effect that any change in course load will have on your financial assistance obligations. For Veteran students the VA Office will be notified. Veteran students should contact their VA Office in the event VA Benefits may be affected.

AAU’s Financial Aid Office is notified by the Office of the Registrar of the student’s withdrawal. Based on this notification, the student file is pulled, the withdrawal information is reviewed, and a return of Title IV funds (R2T4) calculation is performed if appropriate. Upon the Financial Aid Office initiating any return or refunds, the borrower will be notified in writing.

If a student owes any money to AAU resulting from the return of federal funds, the student will receive a bill from the Business Office. For further details, please refer to the Financial Aid Handbook.

Return to Title IV Funds (R2T4)

If a student has received Federal Direct Loans or Federal Pell Grant funds during his or her period of enrollment and is withdrawn or withdraws from the institution, an R2T4 calculation will be performed. If a student has not yet been awarded but has a valid ISIR for the current awarded year, an R2T4 calculation is performed to determine a potential Post-Withdrawal Disbursement. The date of withdrawal is always the last date of attendance.

Attendance at AAU includes:

  1. Submitting an academic assignment,
  2. Taking an exam, or
  3. Participating in an online discussion about academic matters.

Attendance is not:

  1. Logging into your course without active participation or
  2. Participating in academic counseling or advisement.

Returning Unearned Funds

Institutions are required to determine the percentage of Title IV aid earned by the student and to return the unearned portion to the appropriate aid program. This percentage is determined by the percentage of the enrollment period completed by the student.

The return of funds policy consists of the following steps:
  • Determine the percentage of the enrollment period completed by the student. Days Attended Õ Days in Enrollment Period = Percentage Completed If the calculated percentage exceeds 60 percent, then the student has earned all Title IV aid for the enrollment period.
  • Apply the percentage completed to the Title IV aid awarded to determine the student’s eligibility for aid prior to the withdrawal.
    Total Aid Disbursed x Percentage Completed = Earned Aid
  • Determine the amount of unearned aid to be returned to the appropriate Title IV aid program.
  • Total Disbursed Aid - Earned Aid = Unearned Aid to be Returned If the aid already disbursed equals the earned aid, no further action is required. If the aid already disbursed is less than the earned aid, a late disbursement will be made to the student. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program.
  • Distribute the responsibility to return funds between the institution and the student.

AAU and the student are both responsible for returning unearned funds to the appropriate programs in specific loan/grant order. The institution must return the lesser of:

  1. The total amount of unearned aid, or
  2. Institutional charges multiplied by the unearned percentage.

Amounts that must be returned will first be applied to federal loans and then to grants. Loan borrowers will be permitted to repay loans based on the terms of the promissory note. The student will also be billed for any amount due to AAU resulting from the student’s withdrawal. If a student owes any money to the school resulting from the return of federal aid funds, the student will receive a bill from the Business Office.

Title IV aid is returned in the following order:

  1. Unsubsidized Federal Direct Stafford Loans
  2. Subsidized Federal Direct Stafford Loans
  3. Federal Direct PLUS Loans
  4. Federal Pell Grants
  5. Iraq and Afghanistan Service Grant

Any student with an account credit balance will be refunded to the funding source in the order outlined above.

The student’s grace period (if applicable) for loan repayments for Federal Unsubsidized and Subsidized Direct Stafford Loans will begin on the day of the withdrawal from AAU. The student should contact the servicer if he or she has questions regarding his or her grace period or repayment status. The student’s eligibility for future financial aid may change based on his or her withdrawal from AAU.

Post-Withdrawal Disbursements

Any post-withdrawal disbursement due must meet the current required conditions for late disbursements. A school is required to make (or offer as appropriate) post-withdrawal disbursements to eligible students. A post-withdrawal disbursement must be made within 180 days of the date the institution determines that the student withdrew. The amount of a post-withdrawal disbursement is determined by following the requirements for calculating earned FSA and has no relationship to incurred educational costs.

Procedures:

  1. If a student is eligible for a post-withdrawal of a federal grant, it will be disbursed within 45 days of the date of determination of withdrawal.
  2. A student (or parent, in the case of a Direct PLUS loan) is notified of eligibility for a post-withdrawal disbursement of a Federal loan within 30 days of the withdrawal date by email and must respond within fourteen days.
  3. If the student (or parent) accepts the post-withdrawal disbursement of a federal loan, it must be made as soon as possible but no later than 180 days of the withdrawal date.
  4. The Financial Aid Office will track this notification and make appropriate updates in the system as necessary.
  5. When the student’s (or parent’s) response is received it will be updated in the system.
  6. The priorities for disbursement are grants first; paid to outstanding institutional charges before being paid directly to the student (or parent).

Examples:

  1. It is Marie’s first semester, and she is enrolled in the B.S. of Business Administration program. She is a full-time student enrolled in 12 credits in the semester (16 weeks / 112 days). On the 2nd day of week 10, Marie withdrew from her courses to pursue an acting career.

    Marie attended AAU for 65 days ((7 x 9) + 2 = 65) in an enrollment period of 112 days; therefore, she completed 58.04% (65/112) of her enrollment period.

    During the current payment period, Marie was disbursed a Pell grant for $1,500 and a subsidized loan for $1,500, a total of $3,000. Her earned aid is $1,740 (58% x 3,000), whereas her unearned aid is $1,260 ($1,740-$1,260). Marie will have to repay $1,260 under the terms of the unsubsidized loan.

  2. It is John’s second semester, and he is enrolled in the B.S. of Criminal Justice program. He is a full-time student enrolled in 12 credits in the semester (16 weeks / 112 days). On the 5th day of week 11, it was the last time John attended class.

    John attended AAU for 75 days ((10 x 7) + 5 = 75) in an enrollment period of 112 days; therefore, he completed 66.96% (75/112) of his enrollment period.

    During the current payment period, John was disbursed a Pell grant for $900, a subsidized loan for $2,500, and an unsubsidized loan for $1,000, a total of $4,400. Because he attended for at least 60% of the enrollment period, his total earned aid is $4,400, and there is no unearned aid.

Disclosure

Refund requirements, policies, and procedures are provided to students in writing annually and are posted on AAU’s website.


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