There are four sources of financial aid: federal government (e.g. Title IV funds or Veteran’s Administration educational benefits), state governments, Bethel University, and private third-party organizations (e.g., Dollars for Scholars). Financial aid is refunded in accordance with policies established by each entity. Refunds are first calculated for federal funds, then state funds, then Bethel and third-party funds.

Students who withdraw from all classes during the 100% tuition refund period are presumed to have not attended their classes. These students will receive a full refund of all their financial aid unless they complete a Supplemental Withdrawal Form (available in the Office of Student Life), documenting their attendance at each class. Upon receipt of the Supplemental Withdrawal Form, the federal financial aid refund policy will be calculated using the last date of class attendance as the official date of withdrawal. If students receive a full (100%) refund of tuition, they are ineligible for any state, institutional, or private sources of financial aid.

1. Federal (Return of Title IV Funds – R2T4) Refund Policy: When a recipient of Title IV grant or loan assistance withdraws during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student’s withdrawal date (34 CFR 668.22(a)(1)). 

The following Title IV financial aid programs are subject to the federal Return of Title IV Funds refund calculation: Federal Pell Grant, Iraq and Afghanistan Service Grant (IASG), TEACH Grant, Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Direct Loans. Students retain funds earned through the Federal Work Study Program prior to withdrawing from Bethel.

Only courses that count towards program completion can be included in the R2T4 calculation when determining enrollment level and institutional costs.

If a student withdraws or is expelled from Bethel after beginning classes but before completing 60 percent of their term (or period of enrollment), the school or the student may be required to return a portion of the student’s Title IV aid for the semester.   

For students in modular courses or modular programs the following four questions are asked to determine if an R2T4 calculation is required:

1. After beginning attendance in at least one course, did the student stop attending or fail to begin attendance in a scheduled course used to determine the student’s eligibility for Title IV aid?
   1. If Yes, proceed to question 2.
   2. If No, R2T4 calculation is not required.
2. When the student stopped attending or failed to begin attendance in a scheduled course, was the student currently attending any other courses in the payment period or period of enrollment used to determine the student’s eligibility for Title IV aid?
   1. If Yes, student made a schedule change and Title IV aid must be recalculated, but a R2T4 calculation is not required.
   2. If No, proceed to question 3.
3. Does the student qualify for one of the following R2T4 Exemptions?
   1. Did the student complete all requirements for graduation?
      1. If Yes, a R2T4 calculation is not required, although it may be necessary to recalculate aid.
      2. If No, proceed to question 3b.
   2. Did the student successfully complete Title IV-eligible coursework in one module or a combination of modules that equals 49% or more of the number of countable days in the payment period or period of enrollment?
      1. If Yes, a R2T4 calculation is not required, although it may be necessary to recalculate aid.
      2. If No, proceed to question 3c.
   3. Did the student successfully complete Title IV-eligible coursework equal to or greater than what the school considers to be half-time enrollment for the payment period or period of enrollment?
      1. If Yes, a R2T4 calculation is not required, although it may be necessary to recalculate aid.
      2. If No, proceed to question 4.
   4. Did the student confirm attendance in writing for a Title IV-eligible course in a later module in the payment period or period of enrollment that begins no later than 45 calendar days after the end of the module he or she ceased attending?
      1. If Yes, a R2T4 calculation is not required unless the student fails to begin attendance in later module. It may be necessary to recalculate aid.
      2. If No, perform the R2T4 calculation. It may be necessary to first recalculate Title IV aid for courses the student never attended.

The R2T4 calculation measures the percent of the enrollment period the student completed. This ratio (number of days attended / number of days in the enrollment period or semester) is then multiplied by the “Title IV Aid that was disbursed (or could be disbursed) to determine what percent of the Title IV Aid was earned via class attendance or participation (scheduled breaks of at least five consecutive days are excluded). Students retain the earned portion of their Title IV Aid. The unearned portion of aid is subject to being returned to the government, and is allocated to Title IV programs from which students received assistance in the following order: Unsubsidized Federal Direct Stafford loans; Subsidized Federal Direct Stafford loans; Federal Direct PLUS; Federal Pell Grants; Iraq and Afghanistan Service Grants; FSEOG Program aid; TEACH Grants (34 CFR 668.22(I)).

If the R2T4 calculation results in a credit balance on the students account, the balance will be disbursed to the student no later than 14 days after the calculation of R2T4 (34 CFR §668.164(h)).

The withdrawal date is the earlier of (a) the date the student first notified Bethel of intent to withdraw, or (b) the date the student actually began the withdrawal process. BUILD and College of Arts and Sciences students initiate the official withdrawal process in the Office of Student Life, where they can inform staff of their intent to withdraw, pick up the withdrawal forms, or schedule an appointment for an exit interview. Notification of intent to withdraw can be done in-person or by phone (651.638.6300). Students enrolled in Bethel Seminary, the College of Adult & Professional Studies or the Graduate School initiate the official withdrawal process with the Office of Student Success and Retention (phone 651.635.8800 or email studentaffairs@bethel.edu).

Students who do not officially withdraw, but simply stop attending classes, are considered unofficially withdrawn for the purposes of R2T4 calculations. The withdrawal date used in the R2T4 calculation for unofficial withdrawals is (a) the last date of attendance (when available), or (b) the midpoint of the semester or period of enrollment. Students who do not successfully pass any of their courses, and do not officially withdraw, are also subject to the R2T4 calculation, unless they completed more than 60 percent of the semester (or enrollment period), as documented by their academic engagement.

If the amount of Title IV funds earned by the student is more than the amount disbursed as of the withdrawal date, the school must disburse, or offer to disburse, the difference in a “post-withdrawal disbursement.” 

Post-Withdrawal Disbursement of Title IV funds.

A post-withdrawal disbursement will first be applied to the student account. Any resulting credit balance is handled according to the requirements for Title IV credit balances in 34 C.F.R §668.22 (a)(5) and (6) and 34 C.F.R. §668.164(j). 

• A post-withdrawal disbursement must be made from available grant funds before available loan funds.
• Post-withdrawal disbursements consisting of loan funds must be offered to the student within 30 days, allowing the student at least 14 days to respond to accept or decline the funds. Receipt of active confirmation from the student, or parent in the case of a parent PLUS loan, is required before loan funds will be disbursed as part of a post-withdrawal disbursement.
• Within 45 days of the Date of Determination Bethel will disburse directly to the student credit balances on the student’s account.
• Within 30 days of the Date of Determination Bethel will provide a written notification to the student, or parent in the case of a parent PLUS loan, that
  1. Requests confirmation of any post-withdrawal disbursement of loan funds that the institution wishes to credit to the student's account and/or disburse to the borrower, identifying the type and amount of those loan funds and explaining that they may accept or decline some or all of those funds;
  2. Explains that if the borrower who does not confirm that a post-withdrawal disbursement of loan funds may be credited to the student's account may not receive any of those loan funds as a direct disbursement unless the institution concurs;
  3. Explains the obligation of the borrower to repay any loan funds he or she chooses to have disbursed; and
  4. Advises the borrower that no post-withdrawal disbursement of loan funds will be made if the student or parent in the case of a parent PLUS loan, does not respond within 14 days of the date that the institution sent the notification, or a later deadline set by the institution.

Within 30 days of the date the school determined a student withdrew, the school must notify the student in writing of any unearned Title IV funds the student is responsible to repay, and/or notify the student and/or parent PLUS borrower of possible post-withdrawal disbursement of loan funds. The Direct Loan borrower(s) must confirm in writing their approval of any post-withdrawal loan disbursement.

Students have 45 days to repay a grant overpayment or enter into a satisfactory repayment agreement. Students who fail to repay the overpayment after 45 days, or fail to enter into a satisfactory repayment agreement, will be reported to the National Student Loan Data System (NSLDS) by the school and referred to the U.S. Department of Education’s Borrower Services-Collections.

Bethel also has 45 days from the date it determined the student withdrew to return its share of unearned funds and make any post-withdrawal grant disbursements. 

2. Minnesota Office of Higher Education (MOHE) Financial Aid Refund Policy: Bethel is required to use the MOHE financial aid refund policy when calculating refunds for the Minnesota Public Safety Officer’s Survivor Grant Program, Minnesota GI Bill, Minnesota State Grants, Minnesota ID Grant, and Minnesota SELF loans. After applying Bethel’s “billing refunds” and the “Return of Title IV Funds” refund calculations to the student’s account, a proportionate share of the state aid is refunded as defined in the Office of Higher Education Refund Calculation Worksheet (Appendix 13 of the State Grant Program Manual, http://www.ohe.state.mn.us/mPg.cfm?pageID=1538). Students who withdraw without attending classes, or withdraw during a 100% tuition refund period are not eligible for any Minnesota state financial aid. Students retain funds earned through the Minnesota State Work Study Program prior to withdrawing from Bethel.

3. Financial Aid Refunds for Institutional and Third-Party Funds: After calculating the federal and Minnesota financial aid refund policies, Bethel reduces institutional and third-party sources of gift aid in accordance with Bethel’s Tuition and Housing Refund policy (Holds & Student Billing Policies | Bethel University). Institutional and third-party gift aid is reduced by the same percent as the student’s tuition was reduced. Private educational loans are first used to pay any remaining balance on the student’s account. If, after all refund calculations, there is a credit on the student’s account, a portion of the private loan may be refunded to the lender.