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Please consider the refund policies below before you enroll. 

If for some reason you drop out of school, you may be surprised at how much money you might owe.  Going to school is serious and the decision should not be taken lightly.  The US Department of Education and our Accrediting Agency, NACCAS, has set forth the following refund policies.  Both are complex and detailed.  Please read them and understand that if you start school and drop out, you owe tuition based on the scheduled hours that you were supposed to attend.  For example, if you drop out of school when you are at 400 scheduled hours, that would be 26% of the program.  Look at the refund chart.  That would translate into owing 70% of the total tuition of the program.  So please, don’t drop out!  Finish what you start if at all possible!  I want you to be successful and not to be in debt for something that you didn’t complete.   

RETURN OF TITLE IV FUNDS
POLICY

(R2T4)
3/2015





The Federal Return of Title IV funds formula (R2T4) dictates the amount of Federal Title IV aid that must be returned to the federal government by the school and/or the student.  The federal formula is applicable to an eligible student receiving federal aid when that student withdraws at any point during the payment period.  If a student did not start or begin attendance at the school, the R2T4 formula does not apply.

Official Withdrawal Process:  If a student wishes to withdraw from school, they must notify the director of the school.  The notification must be in writing.   notification is received is the date of determination.  The director must begin the withdrawal process.

Unofficial Withdrawal Process:  A student’s withdrawal date is their last date of physical attendance.   Their date of determination is 14 days after they cease attendance.  Aid received and prior to DOD is aid that could have been disbursed.  

If a student withdraws during a leave of absence, the date of determination is the date they officially withdraw.  If the student does not return from a leave of absence, their date of determination is the date they were scheduled to return.



Aid Earned vs. Unearned


Earned Title IV Funds 

Title IV funds used to cover educational costs according to the length of time the student was enrolled before withdrawing. The amount of funds earned is directly proportional to the number of clock hours scheduled to have been completed the payment period as of the student's withdrawal date.  For our clock-hour program, the percentage of the period completed is determined by dividing the number of hours the student was scheduled to complete in the payment period  as of the day the student withdrew, by the total number of clock hours in the same period as follows: 

•   of clock hours the student was scheduled to complete in the period divided by total hours in the period.
•  If the resulting percentage is greater than 60% a student is considered to have earned all aid. 

Unearned Title IV Funds 

The amount of grant and loan assistance awarded under Title IV that has not been earned by the student and must be returned to the programs. The unearned Title IV funds percentage is determined by subtracting the earned Title IV percentage from 100. To calculate the amount of unearned Title IV funds, multiply the total disbursed federal financial aid the unearned Title IV refund percentage. 

For the determination of and calculation of aid earned and unearned, only scheduled hours are used to determine the percentage of the period completed by a student withdrawing from a clock hour program. 

A student withdrawing from a clock hour program earns 100% of his or her aid if the student’s withdrawal date occurs after the point that he or she was scheduled to complete more than 60% of the scheduled hours in the payment period. The scheduled clock hours used for a student are those established by the school prior to the student’s beginning class date for the payment period or period of enrollment, and the hours must have been established in accordance with any requirements of the state or the institution’s accrediting agency. These hours are consistent with the published materials describing the institution’s programs.

If a student receives less Title IV funds than the amount earned, the school will offer the student a disbursement of the earned aid that was not received at the time of their withdrawal which is called a post-withdrawal disbursement.  Post-withdrawal disbursements will be made from Pell Grant funds if the student is eligible.  If there are current educational costs still the at the time of withdrawal, a Pell Grant post-withdrawal disbursement will be credited to the student’s account. Any remaining Pell funds must be released to the student without the student having to take any action. The funds must be released as soon as possible but no more than 45 days after the date of determination.  Any federal loan program funds a post-withdrawal disbursement must be offered to the student and the school must receive the student’s authorization before crediting their account.

If a credit balance still exists on the student’s account after the R2T4 and institutional refund calculations are done, that credit balance must be used to pay any grant overpayment that exists based on the current withdrawal within 14 days from the date that the R2T4 calculation was performed.  The overpayment must be eliminated prior to offering a credit balance to a student.  Returns must be made as soon as possible to the federal programs but no later than 45 days after the date of determination.  

The law requires that a student is responsible for all unearned Title IV program assistance that the school is not required to return.  This is determined by subtracting the amount returned by the school from the total amount of unearned Title IV funds to be returned.

If a student owes an overpayment to the U.S. Department of Education, Image Maker Beauty Institute will notify the student in writing within 30 days from the date of the school’s determination that student withdrew.

Example:  Student withdraws having received $2865 in Pell grant, $1742 subsidized direct loan and $2969 of unsubsidized direct loan for a total $7576.  The student completed 240 scheduled hours as of their last day of attendance from 450 scheduled hours in the payment period.  They would have earned 53.3% of their federal aid received.  $7576 x 53.3% = $4038.01.  The unearned aid is calculated using the difference of 100% and the 53.5% which is 46.7%.  The prorated tuition and fee costs for the 450 hour payment period are $7800.  $7800 x 46.7 = $3642.60.  The school is obligated to return to the federal aid programs the lesser of the two which is the $3642.60.  The difference between the earned and unearned is the responsibility of the student.  If there is still a balance of loans to be paid the student repays it through the normal repayment process.  If it is a grant overpayment the student is responsible for any amount over 50% of their initial grant. 

Students who owe overpayments to the U.S. Department of Education, as a result of a complete withdrawal, will initially retain their eligibility for Title IV funds for a maximum of 45 days from the earlier of the:

• Date the school sends the student notice of the overpayment, or 
• Date the school was required to notify the student of the overpayment.

There are two positive actions a student can take to extend his or her eligibility for Title IV funds beyond 45 days.
1. The student may repay the overpayment in full to the school. 
2. The student may sign a repayment agreement with the Department of Education.

If the student takes no positive action during the 45-day period, Image Maker will report the overpayment to the National Student Loan Database System (NSLDS) and Borrower Services immediately after the 45-day period has elapsed.


The following Title IV distribution order is used for all SFA students.
Unsubsidized Direct Loan
Subsidized Direct Loan
Direct PLUS Loan (Parent)
Federal PELL Grant 
Iraq Afghanistan Service Grant


* This Policy is in addition to the Institutional Refund Policy.


The Institutional Refund Policy is as follows:


Image Maker Beauty Institute realizes that in rare instances certain circumstances may arise causing a student to change their career plans. In a cancellation and refund policy has been established to provide fairness to the student and to Image Maker Beauty Institute.
                
For applicants who cancel enrollment or students who withdraw from enrollment a fair and equitable settlement will apply. The following policy will apply to all terminations for any reason, by either party, including student decision, course or program cancellation, or school closure.   Any monies due the applicant or students shall be refunded within 45 days of official cancellation or withdrawal. Official cancellation or withdrawal shall occur on the earlier of the dates   1. An applicant is not accepted by the school. The applicant shall be entitled to a refund of all monies paid.  2. A student (or legal guardian) cancels his/her enrollment in writing within three business days of signing the enrollment agreement. In all monies collected by the school shall be refunded, regardless of whether or not the student has actually started classes.  3. A student cancels his/her enrollment after three business days of signing the contract but prior to starting classes. In he/she shall be entitled to a refund of all to the school less the registration fee in the amount of $100.00.  4. A student notifies the institution of his/her withdrawal in writing.  5.  A student on an approved leave of absence notifies the school that he/she will not be returning. The date of withdrawal shall be the earlier of the date of expiration of the leave of absence or the date the student notifies the institution that the student will not be returning.  6.  A student is expelled by the school. (Unofficial withdrawals will be determined by the institution by monitoring attendance at least every 30 days.)  7.  In type 2, 3, 4 or 5, official cancellations or withdrawals, the cancellation date will be determined by the postmark on the written notification, or the date said notification is delivered to the school administrator or owner in person.  * For students who enroll and begin classes but withdraw prior to course completion (after three business days of signing the contract), the following schedule of tuition earned by the school applies. 
 
All Refunds are based on Scheduled Hours and on 
                  the student’s last date of attendance.                        

Percentage of Scheduled Time Enrolled Total Program
Amount of Total Tuition Owed to the School

0.01 % to 4.9 %          20 %
5 % to 9.9 %              30 %
10 % to 14.9 %          40 %
15 % to 24.9 %          45 %
25 % to 49.9 %          70 %
50 % and over          100 %
 
 * All refunds will be calculated based on the student's last date of attendance. Any monies a student who withdraws shall be refunded within 45 days of a determination that a student has withdrawn, whether officially or unofficially. In the case of disabling illness or injury, death in the student's immediate family or other documented mitigating circumstances, a reasonable and fair refund settlement will be made. If permanently closed or no longer offering instruction after a student has enrolled, the school will provide a refund of tuition to the student OR provide course completion through a pre-arranged with another institution. If the course is canceled subsequent to a student's enrollment, the school will either provide a full refund of all monies paid or completion of the course at a later time. If the course is after students have enrolled and instruction has begun, the school shall provide a refund for all students transferring to another school based on the hours accepted by the receiving school OR provide completion of the course OR participate in a Teach-Out Agreement OR provide a full refund of all monies paid.

* Students who withdraw or terminate prior to course completion are charged a cancellation or administrative fee of $150.00. This refund policy applies to tuition and fees charged in the enrollment agreement. Other miscellaneous charges the student may have incurred at the institution (EG: extra kit materials, books, products, unreturned school property, etc.) will be calculated separately at the time of withdrawal. All fees are identified in the catalog and in this enrollment agreement.

 
Past Due Accounts

Students with overdue accounts may not be permitted to attend class or may be placed on probation, suspension (up to 30 days), or terminated until is made unless other arrangements have been made. Any accounts 60 days overdue will be referred to a collection agency at the discretion of Image Maker Beauty Institute’s administration. All tuitions, fees or other debt to the school must be paid in full unless other arrangements have been made before applying for graduation.


For the love of money
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