Ala. Admin. Code r. 300-4-9-.05

Current through Register Vol. 43, No. 02, November 27, 2024

Section 300-4-9-.05 - Refunds And Repayment Requirements

(1) Repayment of institutional refunds to the Appalachian Youth Scholarship Program.

(a) An institution shall return a portion of a refund owed to a student to the Appalachian Youth Scholarship Program if

1. The student officially withdraws, drops out, or is expelled from the institution on or after his or her first day of class of a payment period; and

2. The student received assistance under the Appalachian Youth Scholarship Program.

(b) For purposes of this section, an instituitonal refund means the amount paid for institutional charges for a payment period by financial aid and/or cash payments minus the amount retained by the institution for the portion of the payment period that the student was actually enrolled at the institution. The amount retained by the institution for the student's actual period of enrollment is calculated according to the institution's refund policy.

(c) The portion of the refund that the institution shall return to the Appalachian Youth Scholarship Program is the lesser of

1. The amount of assistance received under the Appalachian Youth Scholarship Program for the payment period; or

2. The amount obtained by multiplying the institutional refund by the following fraction:

Total amount of Appalachian Youth Scholarship Program assistance awarded for the payment period/Total amount of assistance (exclusive of all work earnings) awarded for the payment period.

(2) Repayment to the Appalachian Youth Scholarship Program of disbursements made to the student for noninstitutional costs.

(a) If a student officially withdraws, drops out, or is expelled on or after his or her first day of class of a payment period, the institution shall determine what portion, if any, of the Appalachian Youth Scholarship Program assistance received for that payment period by the student for noninstitutional costs is an overpayment that must be repaid by the student. The institution shall make every reasonable effort to contact the student and recover the overpayment in accordance with program regulations.

(b) To determine if any of the Appalachian Youth Scholarship Program assistance received by the student for noninstitutional costs incurred by the student for that portion of the payment period during which the student was enrolled from the amount of assistance disbursed to the student. Noninstitutional costs may include, but are not limited to, room and board for which the student does not contract with the institution, books supplies, transportation, and miscellaneous expenses.

(c) The portion of the overpayment as determined according to paragraph (2)(b) of this section that the institution shall return to the Appalachian Youth Scholarship Program is the lesser of

1. The amount of assistance received under the Appalachian Youth Scholarship Program for the payment period; or

2. The amount obtained by multiplying the overpayment by the following fraction:

Total amount of the Appalachian Youth Scholarship Program assistance awarded for the payment period/Total amount of assistance (exclusive of all work earnings and GSL, PLUS, and SLS loans) awarded for the payment period.

3. Drop Out Date. For purposes of this section, a student is considered to have dropped out on the last recorded date of class attendance by the student as documented by the institution.

Author:

Ala. Admin. Code r. 300-4-9-.05

New Rule: Filed November 7, 1997; effective December 12, 1997.

Statutory Authority: Alabama Act 300-4-9.