FINANCIAL AID PUBLICATIONS

STUDENT FINANCIAL AID HANDBOOK

2008– 2009

Chapter Eleven

REFUND POLICY

Tuition Refund Policy
Prior to the 1998 Amendments, Section 484B of the Higher Education Act (HEA) required all schools participating in the Title IV programs to use specific policies when a student who received Title IV funds ceases attendance at the institution. Under the 1998 Amendment, Section 484B of HEA does not dictate a refund policy but prescribes the amount of the Title IV funds a student has earned at the time when a student ceases attendance. It has no relationship to the student’s institutional charges. It is based on a proportional calculation through 60 percent of the payment period. The new requirements do not prohibit an institution from developing its own refund policy or from complying with a refund policy required by an outside agency.

UMDNJ REFUND POLICY FOR WITHDRAWAL FROM SCHOOL
It the student withdraws/drops out/is expelled before his/her first day of class of a payment period, all disbursed Federal Subsidized and Unsubsidized Stafford Loan, Federal PLUS Loan, Federal Pell Grant, FSEOG or Federal Perkins Loan funds are an overpayment and must be returned to appropriate Federal program(s) account by the institution. If the institution cannot document attendance in any class during the payment period, the student is considered to have dropped out before the first day of class.

Note: Dropping out of some classes, but not all classes is not considered a withdrawal and does not trigger the refund provisions. Final regulations provide that a student granted an approved leave of absence should be considered to remain in an in-school status for Title IV HEA loan repayment purposes. However, if the student does not return, the student’s withdrawal date and beginning of the grace period is the date the student began the leave of absence.

In the case of a student who withdraws/drops out/is expelled after his/her first day of class, please refer to the appropriate school catalog for specific refunds policies.