Purpose:

In accordance with 34 CFR 668.16 (d) from Federal Student Aid Policies and Procedures, this policy accounts for the receipt and expenditure of Title IV funds in accordance with generally accepted accounting principles.

Revision Responsibility: Director of Financial Aid

Responsible Executive Office: President

Created in Formalized Policies: June 1, 2018 for electronic version

Policy:

As required by 34 CFR 668.16(d) the institution reports annually to the Secretary of the Department of Education on any reasonable reimbursements paid or provided by a private education lender or group of lenders as described under section 140(d) of the Truth in Lending Act (15 U.S.C. 1631(d)) to any employee who is employed in the financial aid office of the institution or who otherwise has responsibilities with respect to education loans, including responsibilities involving the selection of lenders, or other financial aid of the institution.

Platt College accounts for the receipt and expenditure of Title IV, HEA program funds in accordance with generally accepted accounting principles as required by 34 CFR 668.24(b). The

Director of Financial Services maintains financial records that reflect each Title IV program transaction; general ledger control accounts; and related subsidiary accounts that identify each Title IV program transaction, and separate those transactions from all other institutional financial activity.

As required by 34 CFR 668.164 of the Federal Register, the College makes a disbursement of Title IV program funds on the date that the institution credits a student's account or pays a student. Platt College disburses all Title IV funding by payment period directly to the student’s account the first day after the add/drop period of the term. Title IV funding is used to satisfy the student’s tuition charges and fees, prior award year charges and other educationally related charges incurred by the student at the school. Federal funding that is in excess to the charges on the student’s account must be reimbursed to the student or the parent (in the event that the excess funds were a result of a PLUS loan payment) after the start of the payment period. Students may pick up these funds via paper check at the financial services office or may elect to have their check sent to them by informing the Director of Financial Services.

The College must credit a student’s account with the Title IV funding by term and reimburse the student for each term with the excess funding. If there is a past due balance including educationally related charges other than tuition, fees, and/or institutionally provided room and board, the student must authorize the excess funds from the current term to pay the back balance from a previous term. Late disbursements, which are made to a student’s account after the payment period is over or after a student is no longer enrolled are allowed in certain circumstances (see 34 CFR 668.164(g) for conditions) but not later than 180 days after the date the school determined that the student ceased attendance for 5 academic purposes. As required by 34 CFR 668.165 (a) the College notifies a student via email to the students’ Platt College email account of the amount of funds that the student or his or her parent can expect to receive under each Title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan or FFEL Program funds, the notice will also indicate which funds are from subsidized loans and which are from unsubsidized loans.

Platt College will abide by all guidelines published in 34 CFR 668.165(b) regarding the need for student and/or parent authorizations when Title IV, HEA program funds are to be used or held.

The College reimburses any excess cash of Title IV, HEA program funds that the institution does not disburse to students or parents by the end of the third business day following the date the institution receives the Title IV funds from the Secretary of the Department of Education as mandated by 34 CFR 668.166. The College may maintain for up to seven days an amount of excess cash that does not exceed one percent of the total amount of funds the institution drew down in the prior award year. The College will return immediately to the Secretary any amount of excess cash over the one-percent tolerance and any amount remaining in its account after the seven-day tolerance period