Financial Aid and Billing

The U.S. Department of Education releases official cohort default rates once per year. A cohort default rate (CDR), for schools having 30 or more borrowers entering repayment in a fiscal year, is the percentage of a school's borrowers who enter repayment on certain William D. Ford Federal Direct Loans (Direct Loans) and Federal Family Education Loans (FFELs) during that fiscal year and default (or meet the other specified condition) before the end of the second fiscal year following the fiscal year that the borrower entered repayment.

The law specifies how an institution must determine the amount of Title IV program assistance that a student earns if they withdraw from school. The Title IV programs covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.

Though a student's aid is posted to their account as soon as all FA requirements are completed, a student earns the funds as they complete the period. If a student withdraws during their payment period or period of enrollment, the amount of Title IV assistance earned is determined by a specific formula. Aid is earned on a pro-rata basis. For example, if the student completed 30% of their payment period, they earned 30% of the assistance they were scheduled to receive. Once a student has completed more than 60% of the period, they have earned all assistance scheduled for that period.

If a student did not receive all funds earned, they may be due a post-withdrawal disbursement. Loan fund disbursements require the student's permission. Grant funds may be used automatically for tuition, fees, and room and board; for all other charges the student's permission is required.

If the institution and/or student received excess Title IV funds, those must be returned. The institution must return the lesser of: the student's institutional charges multiplied by the unearned percentage, or the entire amount of excess funds. Any remaining amount must be returned by the student.

Any loan funds the student must return are repaid per the terms of the promissory note. The maximum grant overpayment a student must repay is half the grant funds received; amounts of $50 or less need not be repaid. Students owing a balance due to overpayment are not eligible for additional Title IV aid until the balance is satisfied.

A student's official withdrawal date is the last date of attendance as documented and submitted to the Office of the Registrar, and is used to calculate the earned percentage of Federal Aid.

Title IV return requirements are separate from any institutional refund policy. A student may still owe funds to the institution to cover unpaid charges.

Per the University of Mount Olive Catalog: All tuition and fees for the entire semester are due prior to the start of class. Situations that deserve special consideration should be discussed with the Business Office (Traditional) or One-Stop Advisor (Adult and Graduate Programs), prior to the first day of class.

Students with a remaining balance after considering financial aid and loans must pay that balance prior to the start of class or set up a payment plan online that will have the account paid by the end of the semester. Payment plans will automatically draft the applicable student (parent or guardian) bank account each month.

Payment for tuition is only deferred in the case where a student's employer pays their tuition directly to UMO. If a student receives tuition reimbursement where the employer reimburses the student after completion of the class, the student must have their tuition covered before the class starts through either payment or financial aid.

Book Vouchers will be available through the Business Office for students who have an anticipated credit balance on their account and have agreed to the terms on MyFinancialAid. These charges will be applied to the student's account so that they can use their financial aid to cover the cost.

Returned Checks will automatically be re-deposited by BB&T. The UMO Business Office will also reverse the payment from the student's account manually along with charging a $30 Returned Check Fee.

Adult & Graduate Program students who clean drop their course on or before the Friday of their 2nd week of class will not be charged tuition for the course. If the student withdraws from the course, the tuition charge will remain at the full price.

Traditional Full-Time students who separate from the university will have their tuition pro-rated up until the 4th week of class. After the 4th week, all tuition charges remain at full price.

Any outside scholarships, employer assistance, or Tuition Assistance that paid for the class will be refunded back to the agency in the full amount originally paid. Meal charges are prorated based on the withdrawal date. Room charges are nonrefundable after the semester drop-add date.

A student receiving Military Tuition Assistance (TA) is not eligible to receive a refund of any TA funds. Any refund received by the student should not exceed the amount of other aid awarded for that period of enrollment.

UMO delivers refunds with BankMobile Disbursements, powered by BMTX, Inc. To view UMO's third-party servicer contract for refund management, click here.

Military Tuition Assistance is a U.S. Department of Defense program. TA rules vary by branch of service and can vary between units depending on whether the unit is active, reserve, or National Guard. Tuition Assistance funds will be applied to tuition costs only.

Military Tuition Assistance (TA) is awarded under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, they may no longer be eligible for the full amount of TA funds originally awarded. UMO will return any unearned TA funds on a proportional basis through at least 60% of the period for which the funds were provided.

If a service member stops attending due to a military service obligation, the UMO Director of Student Accounts will work with the affected service member to identify solutions that will not result in student debt for the returned portion.

TA Earned Formula:
Number of days completed ÷ Total days of course (start to end date) = Percent of TA earned

Once a student has attended at least 60% of the period for which TA funds were approved, the student is considered to have earned 100% of the TA funds. A student's official withdrawal date is determined by using the last date of attendance documented and submitted to the Office of the Registrar.

The University of Mount Olive uses electronic statements only, posted to the student's Self-Service Account monthly to inform them of any balance owed. It is the student's responsibility to check their Self-Service account and stay aware of any Stops or Balances on their account.

Per the University of Mount Olive Catalog: "All tuition and fees for the entire semester are due prior to the start of class. Any accounts not paid as specified may be charged at the interest rate of 12% per annum on any unpaid balance. Situations which deserve special consideration should be discussed with the Business Office prior to the first day of class."

Throughout the collection process, the University of Mount Olive will proceed with its best interest as the foremost objective. Dealings with delinquent students will be done in a fair manner with an emphasis on collecting the debt owed while showing patience and compassion where warranted.

If you have any questions about a past due balance, please email Brenda Pridgen at bpridgen@umo.edu.

Many of today's borrowers are struggling to make their payments. Understanding repayment and how to manage loans for your situation is essential.

1. Know who and how much you owe. Use Studentaid.gov to determine what you owe and to whom. It tracks all outstanding federal student loans until they are paid in full.
2. Select a repayment plan. Options include Standard, Graduated, Income-Based, Income-Contingent, and Extended. List all of your lenders and loan types, run the numbers on each repayment plan, and consider which monthly payment is sustainable. Talk to your lender or servicer if your current plan isn't working—you can switch.
3. Stay on top of your loans. Keep in touch with your lenders and notify them of any name, address, or phone number changes. If payments are too high, reconsider your repayment plan. You may qualify for a deferment or forbearance.

If you default on your loans, you still have options. Loan rehabilitation allows borrowers to make nine full payments within 20 days of their due dates over a 10-month period (payments secured through wage garnishment do not count). Benefits of rehabilitation include:

• Loans will no longer be considered in default status.
• The default notation reported to the credit bureau will be deleted.
• Borrowers regain eligibility for the same benefits available before default, including Title IV eligibility.
• Wage garnishment ends and income tax refunds are no longer withheld.