WITHDRAWAL and RETURN of TITLE IV FUNDS (R2T4)
AAMI awards federal financial aid, also known as Title IV funds, with the assumption students will attend the courses for which the funds were awarded. When students withdraw, drop out, are dismissed, or take a leave of absence after beginning attendance, a calculation is required to determine if the federal aid for which the student was previously eligible needs to be reduced based on the date of withdrawal. The withdrawal date is the last date the student attended courses or participated in academically related activities.
A student provides official notification to the school of his or her intent to withdraw. The date the student initiates intent to withdraw the last date of attendance. Failure to attend class, notify the instructor, or stopping payment on a check or credit card is not considered an official drop or withdrawal. You must file an official drop form with the Registrar’s office electronically or in person. Academic advisors may also notify the administration of the student’s withdrawal.
A student stops attending courses without notifying the school of intent to withdraw. AAMI is an attendance-taking institution and uses the last date of attendance reported by instructors to determine the amount of federal aid earned/ When a student is not in attendance for 60 percent of their courses and has not provided written intent to continue in the program, the student is considered withdrawn and a return of funds calculation must be processed. Federal funds must be returned no later than 45 days from the date AAMI determined the student withdrew.
Return of Funds
The amount of federal aid returned is determined by the lesser of:
- the amount of Title IV funds that the student does not earn, or
- the amount of institutional charges the student incurred as of the date of withdrawal multiplied by the unearned percentage of funds.
If a student earned less than the aid disbursed, the calculation is broken down into the student portion of the return and the institution’s portion to return. AAMI returns all required funds, including the student’s portion, which may result in a balance due to the student account.
Funds are returned in the following order:
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Direct PLUS Loans
- Federal Pell Grants, if return of funds is required
Both the general AAMI refund policy and the separate federal Title IV Return of Title IV Funds policy are administered by the American Academy McAllister Institute of Funeral Service, Inc.
Post Withdrawal Disbursement
If the federal aid disbursed to the student is less than the amount earned, and the student is otherwise eligible to receive the funds, a post-withdrawal disbursement (PWD) of the earned aid will be offered to the student. The PWD accepted by the student will first pay the balance owed to AAMI, and the excess amount is refunded in accordance with the refund policy.
Federal Grants – a PWD of grant funds will credit the student’s account without the student’s authorization within 45 days of the date AAMI determined the student withdrew.
Federal Direct Loans – Students eligible for a PWD will be notified via U.S. Mail within 30 days of the date AAMI determined the student withdrew. The student must accept the Federal Direct Loan within 14 days of the date the letter is mailed.