Loan Default, Enrollment Status, and Disbursement Policy | Cleary University

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Loan Default, Enrollment Status, and Disbursement Policy

Loan Default

Students found in default of any Title IV loans or owing a Title IV refund to any college will not be eligible to receive any aid funds. Official academic transcripts will not be released to students who are found to be in default of student loans.

Enrollment Status

To participate in most aid programs, students must enroll for a minimum of six credit hours per semester in a program leading to a degree. See enrollment classifications:

Classification Credits Per Semester
Undergraduate Graduate
Full-Time 12+ credit hours 6+ credit hours
¾Time 9-11 credit hours Not applicable
½ Time 6-8 credit hours 3-5 credit hours

After 60% of the semester has passed, no credit is available.

Disbursements

Aid funds are posted for an eligible student once per semester when the aid file is complete, but not more than 10 days prior to the applicable semester. Grants and scholarships for each semester are posted to the student account after the aid file is complete and the student is registered for classes. Loan proceeds are not posted to the student account until they are actually received from the student’s lender.
It is the policy of the Financial Aid Department to divide awards into two equal parts to correspond to the two semesters of the regular academic year: Fall and Spring. When applicable, aid for students will be divided evenly among three semesters to include the Summer semester. The University will apply the following priorities when refunds must be made to Title IV (Federal) aid programs:

  1. Unsubsidized Federal Direct Loans
  2. Subsidized Federal Direct Loans
  3. Federal PLUS Loans
  4. Federal Pell Grants
  5. Federal Supplemental Educational Opportunity Grants (SEOG)
  6. Other federal sources
  7. Michigan Tuition Grant/Michigan Competitive Scholarships (MTG/MCS)
  8. Other state, private, or institutional aid
  9. The student

Evidence of Attendance Policy for Financial Aid Purposes

Evidence of attendance in enrolled classes is required for all University students. Satisfactory evidence of attendance is defined as fulfilling at least one of the following:

  • Discussion or participation in an on-ground or on-line classroom
  • Completing a Moodle quiz
  • Uploading an assignment in a Moodle classroom

Attendance is required for all classes in order to qualify for financial aid. Failure to meet this requirement may result in loss of eligibility for certain types of student financial aid.

Return of Title IV Funds

This policy applies when students receiving financial aid cease to be enrolled.

Schedule Changes

Changes to the student’s schedule (drop/add or change to a different section of the same class) requires the completion a drop/add form through the academic advisor. This must be done regardless of whether or not the student has attended the class(es) for which he or she was registered.

Financial Aid Recipients

Students receiving financial aid (Title IV Funds) may receive a credit if a drop or withdrawal from all classes occurs before the completion of 60% of the semester. Credit is based on the date the completed drop/add form is received by the Business Office, not on the last date of class attendance. Therefore, it is important to complete and submit the drop/add form as soon as possible once the student’s schedule has changed. Failure to attend class does not change enrollment status or absolve the student from his or her financial or academic responsibilities.

For classes not on the standard schedule, the return of Title IV funds will be computed using the Department of Education R2T4 approved software which calculates the number of days that have passed in the semester over the total number of days in the semester. The total number of days in the semester includes break time and weekends. A grade of “W” will be given for any class from which the student withdraws (note a withdrawal applies on or after the first day of the semester).

Refund Distribution as Prescribed by Federal Regulation for Title IV Funds

In most cases, withdrawing from a class(es) does not guarantee a cash refund of the monies paid to the student’s account. The student may owe the government some of the money that was disbursed at the beginning of the semester. The funds must be returned in the following order of refund source priority.

  1. Unsubsidized Federal Direct Loans
  2. Subsidized Federal Direct Loans
  3. Federal PLUS Loans
  4. Federal Pell Grants
  5. Federal Supplemental Educational Opportunity Grants (SEOG)
  6. Other federal sources
  7. Michigan Tuition Grant/Michigan Competitive Scholarships (MTG/MCS)
  8. Other state, private, or institutional aid
  9. The student
Return of Title IV Funds

The chart below provides the Return of Title IV Funds Schedule for Cleary University financial aid students. Federal return of funds is prorated up to 60% of the program.

Semester Type Total Number of Calendar Days in a Semester At 60% of Semester
15 Week 105 days Day 63 (no refund)
After 60% of the semester has passed, no credit is available.

To determine the amount of aid that will be returned to the federal Title IV programs, the number of days from the semester start date to the withdrawal date will be calculated. That number will be the numerator and the total number of days in the semester will be the denominator. The result is the percentage of federal funds that Cleary University will apply to the student’s account.

In most cases, the Financial Aid Office will return aid funds to appropriate sources as required. In the case where the student has received a refund of a Title IV Grant, such as a Pell Grant, and the calculation resulted in the student owing a repayment of their Pell Grant funds, he/she is responsible for repayment of 50% of his or her portion of the obligation. Grant overpayments to the student are subject to either immediate repayment to the institution or a satisfactory repayment arrangement. The overpayment may be also sent directly to the Department of Education Collections department.

Note: Cleary’s Institutional Refund Policy is different from and not related to Return of Title IV funds. For information about the Institutional Refund Policy, please contact the Business Office. The current Refund Policy for withdrawing during a semester (15 weeks):

Week of the Semester (not class start date) Tuition Refund Percentage
Week One 90%
Week Two 50%
Week Three 50%
Week Four 25%
Week Five 25%
Weeks Six through Fifteen 0% (no refund)

It is important to note that the second session (second seven weeks of the fifteen week semester) classes are part of the fifteen week semester. No refund can be granted for second session classes after week five of the semester even if the withdrawal takes place prior to the class start date of the class.

Additional questions should be directed to the Financial Aid Office.

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