Federal Student Aid Return Policy

The Higher Education Re-Authorization Act of 1998 regulates the manner in which the University will process the Return of Federal Title IV funds should a student be dismissed, withdraw, take a leave of absence or stop attending while a tem is in progress. The term "Title IV" refers to aid programs as authorized under the Higher Education Act of 1965 (as amended) and includes the following programs:

The Federal Return Policy requires that any unearned amounts of Title IV funds be returned to the appropriate Federal programs if the student stops attending before the 60% point of the term as measured in days. (Scheduled breaks of more than five consecutive days are excluded.) This break is applied to students who withdrew, are dismissed or stop attending, etc. from all of their classes after the start of the term.

Students who remain enrolled through at least 60% of the payment period (semester) are considered to have earned 100% of the aid received and will not owe a repayment of Federal Title IV grant funds.

When a student has received Federal Title IV funds in excess of their eligibility, it is the student's responsibility to return the unearned funds to the appropriate programs. The Higher Education Act (484) (b) (2) (c), however, requires that only 50% (one-half) of grant aid received be returned. The University will calculate this amount for student notification.

Unearned grant money must be returned to the appropriate aid programs in order to maintain aid eligibility for future enrollment periods. All repayments are to be made to:

U.S. Department of Education
Debt Collection Service
P.O. Box 4169
Greenville TX 75403-4169
1-800-621-3115

Any loan funds borrowed must be repaid according to the terms of the Promissory Note. You may contact Sallie Mae at 1-888-272-5543 for additional information on this repayment.

Returned federal funds will be applied to the following programs, as appropriate, in the order listed below:

Post-Withdrawal Funds: If the amount disbursed to the student is less than the amount the student earned, the amount is considered to be post-withdrawal disbursement. Post-withdrawal eligibility can be used to credit outstanding charges on the student's tuition account. NJCU has 30 days from the date of the institution's determination that the student withdrew, to offer any amount of the post-withdrawal disbursement to the student (or parent for PLUS loans). The student (or parent) may accept or decline some or all of the post-withdrawal disbursement that is not credited to the student's account. The student (or parent) must respond within 14 days of the date that the institution sends the notification to be eligible to receive the withdrawal disbursement. If the post-withdrawal disbursement is accepted, NJCU must make payment within 90 days if the date of the institution's determination that the student withdrew. If the student (or parent) does not respond to the institution's notice, no portion of the post-withdrawal disbursement that is not credited to the student's account may be disbursed.

The following example is provided for clarification:

You attended class for the first 60 days of a Fall 110 day term and withdrew by filing a withdrawal form in the Registrar's Office. This means you withdrew before the 60% point of the term and did not earn the entire amount of your Federal Aid. Your partial entitlement was 55%, 60/110. If you had received a Federal Pell Grant of $1650, $908 could be used to pay against your bill and the balance, or $742 would be subject to the 50% return rule.

The Financial Aid Office is available to discuss in detail how a student's withdrawal effects their aid and the required return of assistance. Students are encouraged to contact the financial aid office before withdrawing or taking a leave of absence from any class to determine the affect on aid awarded.

Note: This return policy applies only to federally aided students.

Institutional Change Policy
Student who withdraw, dropout, are expelled or take a leave of absence from the University will have their tuition bill adjusted according to the following schedule:

1. The first day of classes through to the end of the 8th day of class, 100% refund of tuition charged.

2. After the 8th day of class through to the end of 36 days of class, 50% refund of tuition charged.

Once the Federal Return Policy, or Institutional Refund Policy has been used and returns distributed according to the refund schedule, state funds will be turned to the appropriate programs in the following order:

1. NJ Class Loan
2. NJ Tuition Aid Grant Program (TAG)
3. NJ Educational Opportunity Fund (EOF)
4. NJ Distinguished/Urban Scholar Program
5. NJ Garden State Scholarship

After federal and state aid program funds have been restored, refunds will be made to any off-campus scholarship/grant programs (according to donors' specifications) and/or New Jersey City University programs. Should a credit balance remain on account after this process has been completed, a pass through of funds will be made to the student.