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 to 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
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 in 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 by 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.
The following refund policy is in effect for all students and applies to all terminations for any reason, by either party, including student decision, course or program cancellation, expelled by the school or school closure.
If an applicant is not accepted by the school the student is entitled to a refund of all monies paid. A student or, in the case of a student who is under legal age, a parent or guardian, may cancel a student’s enrollment in writing within three business days after the Enrollment Contract has been signed. The cancellation date will be determined by on written notification or the date said information is delivered to the school in person, regardless of whether the student has actually started training. Official cancellation or withdrawals shall occur on the earlier of the dates. If a student or, in the case of who is under legal age, a parent or guardian, cancels the contract after three business days of signing the enrollment agreement, all monies collected will be refunded by the school, regardless of whether the student has actually started training.
A student, or in the case of a student who is under legal age, a parent or guardian, who cancels enrollment in writing prior to but after a three business day period following initial enrollment is entitled to a refund of all monies paid less the $100.00 registration fee.
If a student has paid their tuition and terminated his/her education, for any reason, or has been terminated by the school, after classes have begun, is entitled to a refund based upon the following schedule of tuition adjustment, or if the student has begun classes and no tuition has been collected,
he/she is obligated to pay based the following schedule of tuition:
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 %
If Title IV financial aid recipient withdraws prior to course completion, a calculation for return of Title IV funds will be completed and any returns by the school shall be paid, as applicable, first to unsubsidized Federal Direct Student Loan Program; second to subsidized Federal Direct Student Loan Program; third to the Federal Pell Grant Program; fourth to other Federal, State, private or institutional student financial assistance program: and last the student. After all applicable returns to Title IV aid have been made, this refund policy will apply to determine the amount earned by the school and owed by the student. If the student has received personal payments of Title IV aid, he/she may be required to refund the aid to the program. Attendance time is defined as the start date to the last date of physical attendance. The date of determination is the date that the student was officially withdrawn. The refund is due within 45 days of the date of determination that a student has withdrawn, whether officially or unofficially. This date may be the date that the student informed the school that he/she will not be returning or the day that the school determined unofficial withdrawal. The official termination date for students on an approved leave of absence will be the earlier of the documented date of return or the date that the student notified the institution that he/she would not be returning. If a student is absent for 10 days and has not contacted the school, the student will be dropped from school. Unofficial withdrawals are determined by monitoring weekly clock hour attendance. I understand that full payment for the course is due by the mid-point of contracted time. Students who terminate prior to course completion will be charged a $150.00 termination fee. If a course and/or program is canceled subsequent to a student’s enrollment, and before instruction in the course and/or program has begun, the school shall at its option: a. Provide a full refund of all monies paid; or b. Provide completion of the course or program. If a school cancels a program and ceases to offer instruction after students have enrolled and instruction the school shall at its option: a. Provide a pro-rata refund for all students transferring to another school based on the hours accepted by the receiving school, or; b. Provide completion of the course and/or program, or; c. Participate in a Teach-Out Agreement, or; d. Provide a full refund of all monies paid. If a school closes permanently and ceases to offer instruction after students have enrolled, and instruction has begun, the school must make arrangements for students. The School has at its option: a. Provide a pro-rata refund, or; b. Participate in a Teach-Out Agreement. I understand that if I damage property I will be responsible for the cost of repair or replacement. No change or representation in the contract will be recognized unless made in writing.
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.