Monthly Memo

October 2008

In This Issue

Notification List

Distributed Wednesday afternoons:

Voucher Processing

Vouchers are processed on Tuesdays and Fridays for files uploaded by noon.

AES List

Thursdays:

Please look for the schedule online at: http://www.heab.wi.gov/finaid.html.

Refunds In Dollar Amounts — No Cents

Please send refund amounts in whole dollars only.

If the refund amount does have cents please use standard rounding: up for anything 50 cents and over and down for anything below 50 cents. HOWEVER, do not refund more than the disbursed amount.

Grants Updates — Committed and Spent

TG Current This Time Last Year
Committed 120.20% 105.97%
Spent 40.45% 41.30%
WHEG-TRIBAL Current This Time Last Year
Committed 141.31% 133.94%
Spent 33.31% 0.00%
WHEG-UW Current This Time Last Year
Committed 127.34% 98.82%
Spent 48.40% 40.44%
WHEG-WTC Current This Time Last Year
Committed 170.09% 158.87%
Spent 46.31% 47.84%

High School Counselor Workshop Dates and Locations

Friday, October 17

Thursday, October 23

Monday, October 20

Friday, October 24

Tuesday, October 21

Online sessions require internet access from a PC and a telephone. If you select an on-line/internet session, materials will be sent to you.

Upcoming Events

HEAB Board Meeting: November 3, 2008

HEAB Training: November 20

HEAB conducts one-day training programs for new and continuing financial aid administrators. The training session covers all aspects of the programs administered by HEAB, including:

The program begins at 10:00 a.m. and ends no later than 3:00 p.m. It is held at the HEAB offices at 131 W. Wilson St, Suite 902, Madison, WI. We have room for up to 6 people at each session. Please let us know if you are coming to training as materials are printed based on the number of people attending. To register for a session or for more information, please contact Nancy Wilkison at (608) 267-2213 or email at nancy.wilkison@wisconsin.gov.

Updated Return of Funds Policy

The Return of Funds policy has been in place for several years but there still was some confusion about the exact application of the policy. At its meeting in August, the Higher Educational Aids Board approved examples which were added to the policy to provide more clarity. Thanks to the financial aid directors on the committee who developed the examples which were presented to the Board: Debra McKinney, Mary Jo Green, Liz Tucker, Katie Klaus, Ron Ronnenberg, Tim Jacobson, and Susan Teerink.

CHAPTER 10

Return of Funds

The timely identification and return of funds is essential. Returning funds in a timely manner helps ensure that Wisconsin students have money available to them when needed.

Policy

Unclaimed Funds/Non-Attendance

If funds are unclaimed by the student within 21 days of the date the funds are received by the institution, 100% of that student’s state funds must be returned to HEAB promptly after the 21st day.

Withdrawal

If a student withdraws after beginning attendance, state funds must be returned to HEAB within 30 days of the last date of attendance; or the date the student officially notifies school officials of withdrawal; or the date the school officially designates as the withdrawal date. The following process shall be used to determine the amount of funds to be returned in the event of a full withdrawal.

Process

  1. Federal methodology will be used to determine the amount of funds to be returned to HEAB. State aid programs will have priority for any credit balance remaining from an institutional refund after the federal Return of Title IV Funds requirements are satisfied.
    • Wisconsin Higher Education Grant (WHEG) Institutions: The amount of state grants refunded shall not exceed the "unearned" percentage of grant, consistent with the "unearned" percentage of federal funds.
    • Wisconsin Tuition Grant (WTG) Institutions: When a tuition refund is issued and there is a balance remaining after federal funds have been returned to the appropriate federal programs, the WTG* is next in line to receive a refund. The amount of state grants refunded shall not exceed the "unearned" percentage of grant, consistent with the "unearned" percentage of federal funds. Note: should a student at any point in the term receive a 100% refund of tuition, the entire WTG award for the term shall be returned to HEAB regardless of the calculated federal unearned percentage.
  2. Unclaimed or refunded money should be returned to HEAB by check.
  3. The information accompanying the returned funds must include:
    1. Student's first and last name.
    2. Student's social security number.
    3. The correct disbursement code.
    4. Your 3 digit HEAB school code.
    5. The HEAB voucher number (if you do not know the voucher number include the academic year and semester of the award being returned).
    6. Amount of each individual award being refunded.
    7. The check number and date of check being returned. This should not be the number and date of the original award check if different.
  4. Refund lists must be mailed with their accompanying check(s), unless arrangements have been made with HEAB to email the lists.
  5. Refund lists may be submitted on disk using the Refund Template (Appendix #19). Such lists must be saved as an Excel spreadsheet, not a PRN document.
  6. Subject to State Return of Funds Calculation:
    • Talent Incentive Program Grant (TIP)
    • Wisconsin Higher Education Grant (WHEG) and/ or Tuition Grant (TG)
    • Handicapped Student Grant
    • Minority Undergraduate Retention Grant
    • Indian Student Assistance Grant
    • Nursing Student Loan
    • Minority Teacher Loan
    • Teacher Education Loan

The Refund Template is available at www.heab.wi.gov, (Appendix #19) of the Policy and Procedures Manual.

Examples

Example 1:

Student completely withdraws in the 3rd week of classes and is due a 50% *Institutional Refund for tuition and **housing. The total is $2500. The student received a Subsidized Stafford Loan and a Perkins Loan totaling $5000. The institutional unearned charges are $3000 and the amount of Title 4 aid to be returned is $2500. There will not be a credit balance remaining after the federal funds are satisfied, so there will not be any funds returned to HEAB for State Grant Programs.

Example 2:

Student completely withdraws in the 3rd week of classes and is due a 50% *Institutional Refund for tuition and **housing. The total is $2500. The student received a Stafford Loan of $500 and a WHEG of $1200. The institutional unearned charges are $3000 and the amount of Title 4 aid to be returned is $450. There will be a credit balance remaining of $2050 after the federal funds are satisfied, so there will be a refund to HEAB for WHEG (and other state programs) based on the calculated federal % of earned/unearned funds.

Example 3:

Student completely withdraws in the 3rd week of classes and is due a 60% Institutional Refund for tuition. The total refund is $1,000. The student received a Sub Stafford loan of $1750 and a WHEG of $500. The institutional unearned charges are $1200 and the amount of Title 4 aid to be returned is $1200.  There will not be a credit balance remaining after the federal funds are satisfied, so there will not be any funds returned to HEAB for State Grant Programs. 

Institutional Refund is defined as a refund of charges to the student.

Tuition Grant refunds should be calculated using Institutional Refunds for tuition only as TG is required, by Statute, to be applied toward tuition.

All refunds should be mailed to:

State of Wisconsin Higher Educational Aids Board
Refund Processing
P.O. Box 7885
Madison, WI 53707-7885

NOTE: Please remember that for return or refund purposes, Talent Incentive Program Grant funds are considered federal monies, but because the funds are administered through HEAB, any returned funds are due to the state. The federal refund policy should be used to calculate the amount of funds to be returned.

Please contact me by phone at (608) 264-6181 or by email at connie.hutchison@wi.gov if you have suggestions, questions or concerns.

Connie Hutchison
Executive Secretary



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