Return of Title IV Funds/Institutional Refund Policy

This policy applies only to students who totally withdraw or are expelled.

Refunds for these students are determined according to the following policy:

1. The term Title IV Funds refers to the federal financial aid programs authorized under the Higher Education Act of 1965 (as amended) and includes the following programs: Direct Unsubsidized Loan, Direct Subsidized Loan, Federal Parent Loan (PLUS), Federal Pell Grant, Federal TEACH Grant, Federal Supplemental Educational Opportunity Grant.
2. A student’s official withdrawal date is:
   • the date the student began the institution’s official withdrawal process by officially notifying the institution of intent to withdraw; or
   • the date certified as a student’s last date of capable attendance on a physician’s signed certification in the event of a medical withdrawal; or
   • In the event a student does not officially withdraw, the student must be withdrawn as of the student’s last date of attendance at a documented academically related activity (e.g., class attendance, turning in an assignment, taking an exam).
3. Students who are granted a leave of absence are treated in the same manner as students who withdraw from the College.
4. Refund Policy:
   • Title IV, state and institutional aid is earned in a prorated manner on a per-day basis up to the 60% point in the term. Title IV, state, and institutional aid is viewed as being 100% earned after the 60% point in time.
   • Unearned title IV funds must be returned as soon as possible, but no later than 45 days after determining that the student has withdrawn.
   • Any credit balance resulting from the calculation of an R2T4 must be disbursed as soon as possible and no later than 14 days after such calculation.
   • When the calculation of an R2T4 results in a return of funds to the Department of Education which is higher than the school’s portion, the student must repay the funds.
   • An adjusted statement of account will be sent to the student’s GBS email following withdrawal.
   • There are no refunds for courses for which a grade of I (incomplete) or N (in progress) is received.
5. Post-withdrawal disbursements of Title IV funds:
   1. Grants must be disbursed within 45 days of withdrawal.
   2. Loans must be offered to the student within 30 days of withdrawal, allowing the student at least 14 days to accept or decline the funds.
   3. In accordance with federal regulations, when financial aid is involved, funds are returned in the following order:
      • Unsubsidized Direct Student Loans
      • Subsidized Direct Student Loans
      • Federal Pell Grant
      • Federal Supplemental Opportunity Grant
      • other Title IV assistance
      • other federal sources of aid
      • other state, private and institutional aid
      • and finally, the student.

GBSC’s responsibilities in regard to the return of Title IV funds include: providing each student with the information given in this policy; identifying students who are affected by this policy and completing the Return of Title IV funds; calculations for those students; returning any Title IV funds that are due the Title IV programs.

The student’s responsibilities in regard to the return of Title IV funds include returning to the Title IV programs any funds that were disbursed directly to the student and which the student was determined to be ineligible for via the Return of Title IV Funds calculation.

Our Title lV annual disclosure report is also available.