I came across some information regarding a change to Title IV policy that may affect salon schools' ability to retain Title IV aid.
This change deals with the use of Title IV funding to cover prior period charges. A school cannot use more than $200.00 of the current year’s aid to cover prior year costs. If no current year charges are available, the aid (less $200.00) is required to be returned to the student. Prior year charges can be created when a student is charged for the entire amount of tuition up front and receives aid in multiple years. To avoid prior period charges, bill students a piece at a time to ensure current year charges are always available to cover with current year Title IV aid.
It is a pleasure serving you.
Larry Kopsa CPA
