Only the Title IV programs are to be included in this calculation.

The Federal Pell Grant Program is the only Program included in the calculation, which is the only Title IV Program in which American Beauty Institute participates.

The amount of Title IV aid earned is based on the amount of time student spent in academic attendance, and the total aid received; it has no relationship to student’s incurred institutional charges. Because these requirements deal only with Title IV funds, the order of return of unearned funds do not include funds from sources other than the Title IV programs.

Title IV funds are awarded to the student under the assumption that he/she will attend school for the entire period for which the aid is awarded. When a student withdraws, h/she may no longer be eligible for the full amount of Title IV funds that were originally scheduled to be received. Therefore, the amount of Federal grant earned must be determined. If the amount disbursed is greater than the amount earned, unearned funds must be returned.

Up through the 60% point in each payment period the required pro rata calculation is used to determine the amount of Title IV funds student has earned at the time of withdrawal. After the 60% point in the payment period, student has earned 100% of the Title IV funds.

American Beauty Institute measures progress in Clock Hour, and uses the payment period for the period of calculation.

The Calculation Formula:

Determine the amount of Title IV aid that was disbursed plus the Title IV aid that could have been disbursed.

Calculate the percentage of Title IV aid earned:

Divide the number of clock hours scheduled to be completed in the payment period as of the last date of attendance in the payment period by the total clock hours in the payment period.

HOURS SCHEDULED TO COMPLETE

TOTAL HOURS IN PERIOD = % EARNED

If this percentage is greater than 60%, the student earns 100%.

If this percentage is less than or equal to 60%, proceed with calculation.

Percentage earned from the above formula (times) total aid disbursed, or could be disbursed = AMOUNT STUDENT EARNED.

Subtract the Title IV aid earned from the total aid disbursed = AMOUNT TO BE RETURNED.

100% minus percent earned = UNEARNED PERCENT.

Unearned percent (multiplied by) total institutional charges for period = AMOUNT DUE FROM THE SCHOOL.

If the percent of Title IV aid disbursed is greater than the percent unearned (times) institutional charges for the period, the amount disbursed must be used in place of the percent unearned.

If the percent unearned (times) institutional charges for the period is less than the amount due from the school, the student must return or repay one-half of the remaining unearned Federal Pell Grant.

Student is not required to return the overpayment if this amount is equal to or less than 50 percent of the total grant assistance that was disbursed/or could have been disbursed. The student is also not required to return and overpayment if the amount is $50 or less.

American Beauty Institute’s Financial Aid officer sends a GRANT OVERPAYMENT NOTICE to student within 30 days from the date of the school’s determination that student withdrew, giving the student 45 days to either:

Repay the overpayment in full to American Beauty Institute,

Make repayment arrangements satisfactory to American Beauty Institute, or

Sign a repayment agreement with the Department of Education.

NOTE: If the initial amount of overpayment you owed is $50.00 or less, student’s repayment requirement is forgiven.

No further Title IV may be issued until the next evaluation when the student meets the satisfactory policy requirements. If the student does not meet the policy the student will be asked to leave.

INSTITUTIONAL CANCELLATION AND SETTLEMENT POLICY

Any monies due the applicant or student shall be refunded within 45 days of official cancellation or withdrawal. Official cancellation or withdrawal shall occur on the earlier of the dates that:

An applicant not accepted for training by the school shall be entitled to a refund of all monies paid.

If a student (or in the case of a student under legal age, his/her parent or guardian) cancels his/her contract and demands his/her money back in writing, within three business days of the signing of the enrollment agreement or contract, all monies collected by the school shall be refunded This cancellation date will be determined by the postmark on written notification, or the date said information is delivered to the school administrator/owner in person. This policy applies regardless of whether or not the student has actually started training.

If a student cancels his/her enrollment after the three (3) business days after signing the enrollment agreement, but prior to entering classes he/she shall be entitled to a refund of all monies paid to the school, less the enrollment fee as follows:

Cosmetology $100.00

Nail Tech $100.00

Instructor $100.00

For students who enroll in and begin classes, the following schedule of tuition adjustment will be considered to meet minimum standards for refunds.

SCHEDULED TIME ELAPSED TOTAL TUITION SCHOOL

IN TOTAL PROGRAM SHALL HAVE EARNED

(Circle percentage)

.01% to 4.9% = 20%

5% to 9.9% = 30%

10% to 14.9% = 40%

15% to 24.9% = 45%

25% to 49.9% = 70%

50% and over = 100%

Enrollment time is defined as the time elapsed between the actual starting date and the date of the student’s last day of physical attendance in school. Any monies due a student who unofficially withdraws from the institution shall be refunded within 45 days of a determination by the institution that the student has withdrawn without notifying the institution. To determine unofficial withdrawals, the school must monitor each student’s completion of class participation in learning activities, such as class, examinations, tutorials, computer-assisted instruction, and participation in academic counseling or advisement or other academically related activities.

When situations of mitigating circumstances are in evidence, the school may provide a refund which exceeds this refund policy.

If the school is permanently closed and no longer offers instruction, after a student has enrolled, the student shall be entitled to a pro-rata refund of tuition.

If a program or course is canceled subsequently to a student’s enrollment and before instructions in the program or course has begun, the school shall at its option:

provide a full refund of all monies paid; or

provide completion of the program or course

.The arrangements or teach-outs to be performed are to be performed by an institution in the same geographic area as the original school that provided the program or course.

The school at which students continue their education and training shall not charge the students an amount greater than that to which the original school would have been entitled under its contract with the student and for which the student has not yet paid.

The original school shall notify affected students individually of the availability of the arrangement or teach-out plan, and diligently advertise such availability. The agreements among institutions may provide that these notices may be sent by the schools (s) that are accepting students from the original school

Non- Title IV students shall receive a pro-rata refund of tuition.

The original school shall dispose of school records in accordance with state laws.

WITHDRAWALS/COURSE INCOMPLETE

A student who withdraws from their course must do so in writing. Anyone who fails to complete his or her training will have a notice placed in his or her student file as to progress at the point of withdrawal and if the previous cumulative progress was not meeting satisfactory policy, it will still require the student to improve before financial aid is re-instated.

Drop Fee: Any student who withdraws from school after January 1, 2011 will be charged a $150.00 drop fee.

Reinstatement of Title IV Funds--Appeals Procedures

If the student is determined to be ineligible for financial aid because of grades or SAP requirements were not met, the student may appeal the decision to the director within five (5) business days .The student must submit documentation as to why the ruling should not stand. The decision will be determined solely by the director within (ten) days. The student will be advised, in writing, of the decision. If the appeal is approved, the documentation will be placed in the students file and the student re-instated. No further Title IV may be issued until the next evaluation when the student meets the satisfactory policy requirements and if the student does not meet the next grade and attendance policy the student will be asked to leave.

If the appeal to the director is not approved the student may then submit a request to the director for an appeal to the school advisory board for resolution. The school advisory board consists of: the owner, member of public interest and a salon owner. The school’s advisory committee will meet within twenty-one (21) calendar days of receipt of the complaint and review the allegations.

If the complainant wishes to pursue the matter further a complaint form is available through the Oklahoma State Board of Cosmetology, as well as the office of the school director. If the complaint is not resolved at the State Board level, the student may submit it to the Executive Director of NACCAS for further evaluation. The school will provide the information for the procedure for submitting the complaint to NACCAS. (Address listed on page 2)

If the student does not meet the policy the student will be asked to leave.