Alabama Administrative Code
Title 300 - ALABAMA COMMISSION ON HIGHER EDUCATION
Chapter 300-4-2 - ALABAMA STUDENT ASSISTANCE PROGRAM
Section 300-4-2-.07 - Refund And Repayment Requirements
Universal Citation: AL Admin Code R 300-4-2-.07
Current through Register Vol. 42, No. 11, August 30, 2024
(1) Repayment of institutional refunds to the Alabama Student Assistance Program.
(a) An
institution shall return a portion of a refund owed to a student to the Alabama
Student Assistance Program if
1. The student
officially withdraws, drops out, or is expelled from the institution on or
after his or her first day of class of a payment period; and
2. The student received assistance under the
Alabama Student Assistance Program.
(b) For purposes of this section, an
institutional refund means the amount paid for institutional charges for a
payment period by financial aid and/or cash payments minus the amount retained
by the institution for the portion of the payment period that the student was
actually enrolled at the institution. The amount retained by the institution
for the student's actual period of enrollment is calculated according to the
institution's refund policy.
(c)
The portion of the refund that the institution shall return to the Alabama
Student Assistance Program is the lesser of,
1. The amount of assistance received under
the Alabama Student Assistance Program for the payment period; or
2. The amount obtained by multiplying the
institutional refund by the following fraction:
Total amount of Alabama Student Assistance Program assistance awarded for the payment period/Total amount of assistance (exclusive of all work earnings) awarded for the payment period.
(2) Repayment to the Alabama Student Assistance Program of disbursements made to the student for noninstitutional costs.
(a) If a student
officially withdraws, drops out, or is expelled on or after his or her first
day of class of a payment period, the institution shall determine what portion,
if any, of the Alabama Student Assistance Program assistance received for that
payment period by the student for noninstitutional costs is an overpayment that
must be repaid by the student. The institution shall make every reasonable
effort to contact the student and recover the overpayment in accordance with
program regulations.
(b) To
determine if any of the Alabama Student Assistance Program assistance received
by the student for noninstitutional costs constitutes an overpayment, the
institution shall subtract the noninstitutional costs incurred by the student
for that portion of the payment period during which the student was enrolled
from the amount of assistance disbursed to the student. Noninstitutional costs
may include, but are not limited to, room and board for which the student does
not contract with the institution, books, supplies, transportation, and
miscellaneous expenses.
(c) The
portion of the overpayment as determined according to paragraph (2)(b) of this
section that the institution shall return to the Alabama Student Assistance
Program is the lesser of
1. The amount of
assistance received under the Alabama Student Assistance Program for the
payment period; or
2. The amount
obtained by multiplying the overpayment by the following fraction:
Total amount of the Alabama Student Assistance Program assistance awarded for the payment period/Total amount of assistance (exclusive of all work earnings and Direct loans) awarded for the payment period.
3. Drop Out Date. For purposes of
this section, a student is considered to have dropped out on the last recorded
date of class attendance by the student as documented by the
institution.
4. Distribution among
the Title IV, HEA programs. An institution shall develop a written policy
allocating the Title IV, HEA program portion of the refund determined under
paragraph (1) of this section and the overpayment determined under paragraph
(2) of this section from which the student received aid. This allocation policy
must be applied consistently to all students who have received Title IV, HEA
program assistance and must conform to the following:
(i) No amount of the Title IV, HEA program
portion of the refund or of the overpayment may be allocated to the FWS
Program.
(ii) No amount of the
Title IV, HEA program portion of the overpayment may be allocated to the Direct
Loan program.
(iii) The amount of
the Title IV, HEA program portion of the refund or of the overpayment allocated
to a specific Title IV, HEA program may not exceed the amount that the student
received from that program.
(iv)
The amount of the Title IV, HEA program portion of the refund allocated to the
Direct Loan programs must be returned to the borrower's lender by the
institution in accordance with program regulations.
(v) The amount of the Alabama Student
Assistance Program portion of the refund allocated to this Title IV, HEA
program must be returned to the program account by the institution within 30
days of the date that the student officially withdraws or is expelled or the
institution determines that a student has unofficially withdrawn.
(vi) The amount of the Alabama Student
Assistance Program portion of the overpayment allocated to the Alabama Student
Assistance Program must be returned to the appropriate program account within
30 days of the date that the student makes the repayment.
Authors: Joseph T. Sutton, Timothy W. Vick
Statutory Authority: Title IV of the Higher Education Act of 1965 as amended.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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