Title IV Student Credit Balances Policy

Champion Beauty College

Paying Student Credit Balances

A Title IV credit balance occurs whenever the School credits Title IV program funds to a student’s account, and those funds exceed the student’s allowable charges for that payment period. The School pays by check the excess Title IV program funds (the credit balance) directly to the student as soon as possible, but no later than 14 days after:

The date the balance occurred on the student’s account if the balance occurred after the first day of class of a payment period: or
The first day of classes of the payment period if the credit balance occurred on or before the first day of class of that payment period.

If the School determines that the PLUS loan fund created a balance, the School pays the credit balance amount to the parent. Although FSA regulations give the School the latitude to determine which FSA program funds create an FSA credit balance.

Treatment of Title IV Credit Balances When Student Withdraws

This treatment applies only to the handling of Title IV credit balances when a student withdraws. When a student withdraws from the school a Title IV credit balance is handled as follows:

The School does not release any portion of the Title IV credit balance to the student and does not return any portion to the Title IV programs before the performing of the Return Calculation by the School’s Financial Aid Office.
The Financial Aid Office performs the Return to Title IV Calculation, Including any existing Title IV credit balance for the period in the calculation disbursed aid.
Any applicable refund policy (institution) is applied to determine if doing so creates a new or larger Title IV credit balance.

Title IV credit balances are then allocated as follows:

Any Title IV credit balance must be allocated first to repay any grant overpayment owed by the student as a result of the current withdrawal. The School must return such funds to the Title IV grant account within 14 days of the date the School performs the Return Calculation. Although not included in a Return Calculation, any Title IV credit balance from a prior period remains on a student’s account when the student withdraws. Remember, the School must use the final credit balance first to satisfy any current student grant overpayment.
Within 14 days of the date that the School performs the Return Calculation, the School pays any remaining Title IV funds.

Holding Credit Balances

The school may hold excess FSA funds (credit balances) if it obtains voluntary authorization from the student or parent. Because FSA funds are awarded to students to pay current year Charges, notwithstanding any authorization obtained by the School from a student or parent, the School must pay-

Any remaining balances on loan funds by the end of the loan period, and
Any other remaining FSA funds by the end of the last payment period in the award year for which they were awarded.