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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I have a question regarding current charges. We are a
non-term program who awards based upon an award year of 24 hours consisting of
2 payment periods of 12 hours each. Our format is such that students attend one
course at a time, one night a week for 5 weeks. The charges are placed on a
student’s account at the beginning of the month for any class they begin
during that month. This has been the process for a couple of years. What
results from the disbursement is a credit balance that either has to be
returned to the student or it may stay on the student’s account provided
an authorization form is signed. Because students aren’t physically in
the class when the funds are disbursed these courses aren’t considered
allowable charges. We have been told that it would be against a GAAP rule to
charge for these classes at the beginning of the payment period, and disburse
only funds in excess of these charges. The FSA Handbook states that “Current
charges: Charges assessed by the school for the current award year or the loan
period for which the school certified or originated an FFEL or Direct Loan”.
“Allowable charges include: current charges for tuition and fees as
defined in section 472 of the HEA”. So it appears that our tuition charges
are allowable charges and they can be considered current charges because they
are for the current award year. Does any one have any insight into this
problem? I know most of you are term based institutions who place an entire
semester’s charges on account up front, but I think if I read this rule
right this would be the equivalent of placing charges for fall and spring
semesters on the account in the fall. (assuming you could enroll in both
semesters at once). Does this make sense or am I reasoning myself in a winding
circle of confusion. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>The reason I bring this up this. We have had several
students who won’t sign the authorization to retain funds form and we
have only had one charge on their account for the current month’s class.
They are receiving a huge credit balance refund. They subsequently withdraw
from the program without completing the first course. We have been stuck
sending money back to lender, as a result of the r2t4, that isn’t on the
student’s account. I think word is spreading among the people who have
done this and we have seen an increased amount of this activity. Any help you
could provide would be greatly appreciated. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><strong><b><font size=4 color="#000040" face=Pristina><span
style='font-size:13.5pt;font-family:Pristina;color:#000040'>Matt McCoin</span></font></b></strong><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=maroon face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:maroon'>Coordinator of
Financial Aid</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=maroon face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:maroon'>St. Gregory's
University-College for Working Adults</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=maroon face=Verdana><span
style='font-size:10.0pt;font-family:Verdana;color:maroon'>(918) 610-8888</span></font><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:PlaceName w:st="on"><font size=2
color=maroon face=Verdana><span style='font-size:10.0pt;font-family:Verdana;
color:maroon'>FAFSA</span></font></st1:PlaceName><font size=2 color=maroon
face=Verdana><span style='font-size:10.0pt;font-family:Verdana;color:maroon'> <st1:PlaceType
w:st="on">School</st1:PlaceType></span></font></st1:place><font size=2
color=maroon face=Verdana><span style='font-size:10.0pt;font-family:Verdana;
color:maroon'> Code: 003183</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </span><o:p></o:p></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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