Procedure for Academic Credit is not Earned

Latin Beauty Academy has established that when academic credit is not earned at a previously attended school, and, if applicable, our institution must obtain documentation from the student explaining why the student failed to earn academic credit. The institution also determines whether the documentation provided supports:

1. The reasons described by the student; and
2. That the student did not enroll only to receive credit balance funds.

Funds held as credit balances in institutional accounts is not counted in the 90/10 formula. However, once funds held as credit balances are used to satisfy institutional charges, they are counted in both the numerator and the denominator of the formula. These time frames for disbursing to the student’s account (or directly to the student or parent) are different than those for paying FSA credit balances to the student or parent. Latin Beauty Academy has 14 days to pay an FSA credit balance to the student or parent, unless it has written permission to hold the credit balance.

Time Frame for Paying FSA Credit Balances

For Latin Beauty Academy an FSA credit balance occurs whenever our school credits FSA program funds to a student’s account and the total amount of those FSA funds exceeds the student’s allowable charges. If FSA disbursements to the student’s account at Latin Beauty Academy creates an FSA credit balance, our institution must pay the credit balance directly to the student or parent as soon as possible but no later than 14 days after:

• The date the balance occurred on the student’s account, if the balance occurred after the first day of class of a payment period, or
• The first day of classes of the payment period if the credit balance occurred on or before the first day of class of that payment period.

Procedure for Excess PLUS Loan funds

Latin Beauty Academy understands that the law requires that any excess PLUS Loan funds be returned to the student or parent. Therefore, if PLUS Loan funds create a credit balance, the credit balance would have to be given to the parent. However, the parent may authorize our school (in writing or through StudentLoans.gov) to transfer the proceeds of a PLUS Loan credit balance directly to the student for whom the loan is made (for example, to a bank account in the student’s name). The Department does not specify how a school must determine which FSA funds create an FSA credit balance.

Latin Beauty Academy not require a student to take any actions to obtain his or her credit balance. It is the sole responsibility of the school to pay, or make available, any FSA credit balance within the 14-day regulatory time frames. Notwithstanding any authorization obtained by the Latin Beauty Academy, our school must provide the student with any remaining FSA credit balance resulting from FSA loan funds by the end of the loan period and any other FSA program credit balances by the end of the last payment period in the award year for which the funds were awarded as Latin Beauty Academy is responsible to pay credit balance in time frame.

Paying FSA Credit Balances

Paying FSA Credit Balances by Issuing a Check

Latin Beauty Academy may pay a credit balance to a student by issuing a check payable to and requiring the endorsement of the student or parent. Latin Beauty Academy is considered to have issued the check on the date that it:

• Mails the check to the student or parent; or
• Notifies the student that the check is available for immediate pickup and provides the Department of Financial Aid.

Latin Beauty Academy that is paying a student his or her credit balance with a direct disbursement within the 14-day time frame. Latin Beauty Academy within that 14-day is responsible for sending a notice to the student that his or her money is available as our school is considered to have met the 14-day requirement to give the student his or her credit balance, as long as the school’s process complies with the rest of the regulation. That is, the school must be able to give the student a check when the student comes to the office within the 14-day time frame.

If a student is told (within the 14-day period) to come to the business office to pick up his or her credit balance in the Office of Financial Aid, the student must be able to leave the business office with the funds in some form (e.g., a check, cash, or an appropriate stored-value card). Latin Beauty Academy may hold the check for up to 21 days after the date it notifies the student. If the student does not pick up the check within this 21-day period, our institution immediately mails the check to the student or parent, initiate an EFT to the student’s or parent’s bank account, or return the funds to the appropriate FSA program.

Paying FSA Credit Balances by Initiating an EFT

Latin Beauty Academy can pay a credit balance by initiating an EFT to a bank account designated by the student or parent. Moreover, our institution suggests that our students should provide information about an existing bank account or open an account at a bank of the student’s choosing to avoid delay with the disbursement of FSA funds to them. Consequently, if a student does not want to provide this information, Latin Beauty Academy must nevertheless disburse the funds to the student either by dispensing cash, for which the school obtains a signed receipt, or issuing a check. The disburse of the credit balance occurs within the regulatory time frame.

Time Frame for Returning an Unclaimed Title IV Credit Balance

If Latin Beauty Academy attempts to disburse the credit balance by check and the check is not cashed; our institution returns the funds to the Department no later than 240 days after the date the school issued the check. If a check is returned to a school or an EFT is rejected, our school makes additional attempts to disburse the funds not later than 45 days after the funds were returned or rejected.

Holding FSA Credit Balances

Latin Beauty Academy is permitted to hold credit balances if it obtains a voluntary authorization from the student (or parent, in the case of PLUS). If our school has the authorization to hold the credit balance, our institution identifies the amount of funds that it holds for the student or parent in a subsidiary ledger account designated for that purpose. Our institution also maintains, at all times, cash in the bank account at least equal to the amount that it holds for students. Latin Beauty Academy is permitted to retain any interest earned on the student’s credit balance funds. As FSA funds are awarded to students to pay current year charges, notwithstanding any authorization from the student or parent, our institution must pay:

• Any remaining balance on FSA loan funds by the end of the loan period, and
• Any other remaining FSA program funds by the end of the last payment period in the award year for which they were awarded.

If our school has lost contact with a student who is due a credit balance, we use all reasonable means to locate the student. If we still cannot find the student, our institution returns the credit balance to the appropriate FSA program(s) and/or lender.

Authorization to Hold an FSA Credit Balance

Latin Beauty Academy understands and applies all elements of an authorization to hold an FSA credit balance, which are conspicuous and include the following elements:

• An authorization must explain what FSA funds are covered by the document, and it must specify the time period covered.
• An authorization must clearly provide the student or parent with the information he or she needs to make an informed decision.
• The student or parent must be informed that he or she may refuse to authorize any individual item, that he or she may cancel such authorization at any time, and that a cancellation is not retroactive.
• A credit-balance authorization must provide detail that is sufficient to give the student or parent an idea of how the credit balance will be used.

Mechanical Devices and System Safeguards

Latin Beauty Academy has implemented the use of mechanical devices to have an effective control on each financial aid process. For example, when institution distributes FSA credit balances by check, the School Department of Financial Aid adopts procedures that ensure that checks that cannot be delivered are returned to a lockbox type device. Returned checks are be recorded and provided the same safeguards as cash.

Treatment of Title IV Credit Balances When a Student Withdraws

If a student with an FSA credit balance withdraws before the funds are disbursed, Latin Beauty Academy makes a re-calculation and informs the students/parents his/her current financial situation. All returns of FSA Grants and Direct Loan funds previously disbursed (unclaimed credit balances), our institution returns through the G5 system.

Latin Beauty Academy understand that the accounting record for each federal student aid program is self-balancing, and must be separated completely from the accounting records of all other federal student aid programs and from the accounting record for the general operating fund of the school. Within each program, the sum of ledger accounts with debit balances equals the sum of ledger accounts with credit balances.

Latin Beauty Academy has established the following procedure when a student withdraws during a period and Title IV credit balance is created during this period:

1. Do not release any portion of a Title IV credit balance to the student, and do not return any portion to the Title IV programs prior to performing the Return calculation. Latin Beauty Academy holds these funds even if, consistent with the 14-day credit balance payment requirement of 34 CFR 668.164(e), it would otherwise be required to release them.
2. Perform the Return calculation, including any existing Title IV credit balance for the period in the calculation as disbursed aid.
3. Apply any applicable refund policy (state, accrediting agency, institutional, etc.) to determine if doing so creates a new or larger Title IV credit balance.
4. Allocate any Title IV credit balance as follows:

a) Any Title IV credit balance is allocated first to repay any grant overpayment owed by the student as a result of the current withdrawal. Latin Beauty Academy returns such funds to the Title IV grant account within 14 days of the date that the institution performs the Return calculation.

Although not included in a Return calculation, any Title IV credit balance from a prior period that remains on a student’s account when the student withdraws is included as Title IV funds when is determined the amount of any final Title IV credit balance when a student withdraws. Latin Beauty Academy uses the final credit balance first to satisfy any current student grant overpayment. b) Within 14 days of the date, Latin Beauty Academy performs the Return calculation and pays any remaining Title IV credit balance funds in one or more of the following ways:

• In accordance with the cash management regulations to pay authorized charges at the institution (including previously paid charges that now are unpaid due to a return of Title IV funds by the institution);
• Latin Beauty Academy do not use a Title IV credit balance to return funds for which we are responsible as a result of a Return calculation;
• With the student’s authorization, to reduce the student’s Title IV loan debt (not limited to loan debt for the period of withdrawal); or
• To the student (or parent for a Direct PLUS Loan).

In order to accommodate differences in institutional accounting and administrative processes, Latin Beauty Academy does not apply the Title IV credit balance to the student’s grant overpayment before applying the Title IV credit balance to other debts, as long as the grant overpayment is satisfied by the 14-day deadline. Our institution uses school funds instead of the actual Title IV credit balance to satisfy any student grant overpayment.

Latin Beauty Academy pay any funds that are part of a Title IV credit balance (and therefore are funds that have already been disbursed) to a student on an LOA.

If the Title IV credit balance created from funds disbursed before the death of the student exists after the completion of the Return calculation and the institutional refund calculations, resolve the Title IV credit balance in one of the following three ways.

1. In accordance with the cash management regulations, paying authorized charges at the institution (including previously paid charges that are now unpaid due to the Return of Title IV funds by the institution);
2. Returning any Title IV grant overpayments owed by the student for previous withdrawals from the present school (the institution may deposit the funds in its federal funds account and make the appropriate entry in G5); if the institution has previously referred the grant overpayment to Debt Resolution Services, Latin Beauty Academy should provide Debt Resolution Services with documentation that the student has died so that Debt Resolution Services can delete the overpayment from its records.
3. Returning any remaining credit balance to the Title IV programs. Refund the return of interest or excess cash to the Department from G5 drawdowns or the return of audit and program review liabilities and fines.

When Latin Beauty Academy Receives Information that a Student has Died

If, during the school year, Latin Beauty Academy receives information that a current recipient of Title IV aid has died, our institution determines the validity of that information. Until the school has determined whether or not the student remains in attendance, the school does not make additional disbursements of Title IV aid to the student (including releasing any Title IV credit balance that might exist on the student’s account from a disbursement made previously).

In order to avoid causing distress to a student’s family and friends based on an inaccurate report of a student’s death received by the school; Latin Beauty Academy first makes internal inquiries and consult public information sources. If there is no local newspaper report of a student’s death, we conduct an online search of the student’s hometown newspaper and the newspapers where the death was reported to occur.

Latin Beauty Academy also searches the student’s home state vital records office. Internally, our institution gets attendance reports from the faculty in whose classes the student is currently enrolled. Our institution also writes the student at the local residence of record and at any electronic address available (email and social media) to inform the student that it will not be making further disbursements of financial aid to the student until he or she calls or visits the financial aid office.

If a Title IV credit balance created from funds disbursed before the death of the student exists after the completion of the Return calculation and the institutional refund calculations, the institution resolves the Title IV credit balance as follows:

1. In accordance with the cash management regulations, paying authorized charges at the institution (including previously paid charges that are now unpaid due to the Return of Title IV funds by the institution);
2. Returning any Title IV grant overpayments owed by the student for previous withdrawals from the present school (the institution may deposit the funds in its federal funds account and make the appropriate entry in G5). If our institution has previously referred the grant overpayment to Debt Resolution Services, we provide Debt Resolution Services with documentation that the student has died so that Debt Resolution Services can delete the overpayment from its records.
3. Returning any remaining credit balance to the Title IV programs.