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« BACK TO FINANCIAL AID HANDBOOK 2012– 2013 MAIN PAGE
1

Mission Statement

Chapter 1

Chapter 2

Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
2

FINANCIAL AID PUBLICATIONS

STUDENT FINANCIAL AID HANDBOOK

2012– 2013

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 William D. Ford Direct 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 (LOA) should be considered to remain in an in-school status for Title IV HEA loan repayment purposes. UMDNJ still requires students to complete the federally mandated Federal Loan Exit Counseling session. If the student fails to return from the approved LOA within the allotted timeframe, the student is at that time considered withdrawn from school. The student's withdrawal date and beginning of the grace period is the date the student began the leave of absence. Subsequently, the institution will report to the federal loan holder(s) the student's change in enrollment status as of the withdrawal date, which may impact the student's loan repayment terms and may result in the exhaustion of his or her federal loan grace period.

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.

 

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