Undergraduate Bulletin 2012-2013 - Alabama A&M University

FINANCIAL AID POLICIES & PROCEDURES, AAMU, 2012-2013 ~ 26 ~
TOLERANCES – For the Federal Pell Grant Program, the tolerance values will be used in order to pay a student. If a student does not
qualify for payment options based on tolerance, then a correction must be filed with the Central Processor.
NOTIFICATION – The AAMU Office of Student Financial Aid will inform a student of what is required for verification as
processing occurs. Documents missing will be noted on the missing item list or a document-tracking letter and given or mailed to the
student. If during the process of verification or updating AAMU realizes that a Federal Loan or any other financial aid that exceeds
tolerance levels has been made, and these exceed the student’s need, the student will be notified of this action in writing. If in the
verification process, it is discovered that the award amount would increase for a Pell grant, the student will be informed by AAMU
and will only pay on the original ISIR until a new one is processed and originated.
REFERRAL PROCEDURES – The AAMU Office of Student Financial Aid follows the referral procedures mandated by Federal
regulation. Information will be referred to the Secretary of Education, as outlined in the Verification handbook. Over-awards, as a
result of Return of Title IV will be reported to the Federal Government if it exceeds $25.00.
Unearned Federal Aid Repayment
If students withdraw from school prior to completing over 60% of a term, they may be required to repay a portion of the federal
financial aid received for that term. Federal aid includes Federal Stafford Loan, Federal Perkins Loan, Federal PLUS Loan, Federal
Pell Grant, and Federal Supplemental Educational Opportunity Grant.
It is recommended that students try to complete one class, if possible, to avoid any financial hardship imposed by this new
regulation. However, if withdrawal is necessary, it is important to understand the financial obligations.
How Much Must Be Paid When One Withdraws From School? The amount of repayment depends upon the number of days that
the student attended school in the term, the type of financial aid that was received, and whether or not AAMU refunds the tuition and
fees. The attended portion of the term not attended represents the portion of aid that is determined to be unearned. If receiving loans
only and AAMU refunds the amount of tuition and fees, the student will only be required to repay loans in accordance with the regular
repayment schedule. All other students who withdraw prior to completing over 60% of a term must repay a portion of their federal
financial aid.
When Will 100% of My Federal Financial Aid Be Earned? If withdrawal procedures are initiated after completing over 60% of the
term, the student will have earned 100% of the federal financial aid for that term and no repayment is required. This refers to students
who are enrolled in at least one course that meets the full length of the standard term. If one is only enrolled in courses that are shorter
than the full length of the standard term, the date for earning 100% of federal aid will vary.
When Does the AAMU Bursar Refund Tuition and Fees? If withdrawal from AAMU occurs prior to the drop/add deadline for a
term, then a full tuition refund will automatically be processed for the student. Contact the University Bursar at 256-372-5200.