Refund and Repayment (Return of Title IV) Funds
Refund and Repayment of Financial Aid-Return of Title IV Funds
If a student receives federal student aid (grants and loans) and withdraws from all their classes or fails to complete any of their classes due to non attendance, the student may be required to repay funds received to the U.S. Department of Education.
The Financial Aid Office is required by the U.S. Department of Education to calculate the amount of federal aid a student has earned according to the day the student withdrew or the last day of reported school related activity for the semester.
Calculation - Return of Title IV Process
The portion of financial aid to be returned is determined by the percentage of financial aid not earned by the student. The percentage of unearned aid is calculated using the following formula:
Total number of calendar days in the semester not completed by the student divide by the total number of calendar days in the semester.
If the calculation results in the student earning 60% or more of their financial aid funds, no repayment will be required.
If the results determine the student withdrew before 60% of the semester, the student who owes will be billed for the unearned portion of the financial aid funds received. The student will be given 45 days to repay the funds in full or make payment arrangements. Students must first contact the Financial Aid Office for assistance with payment arrangements.
A student receives a $1,000 grant. If there are 100 days in the term and you drop out on the 26th day, then you earned 26% or your grant. The Financial Aid Office will multiply your grant money and figure out what you earned, and did not earn.
$1,000.00 grant x 26% = $260.00 earned; $1,000.00 x 74% = $740.00 unearned
The college will owe a portion of the above unearned amount depending on the number of units the student was enrolled (units x enrollment fee):
12 units at $20.00 each = $240.00 x 74% (unearned) = $178.00 (round up) school will return this amount to the financial aid programs (student loan account first if applicable).
The Student will have to pay back the unearned amount, minus the college's refund, and minus total Title IV grant aid disbursed and could have been disbursed multiply by 50%:
$740.00 - $178.00= $562.00 (Initial amount due from student)
$1,000.00 x 50% = $500.00 (Amount of Title IV grant protection)
$560.00 - $500.00 = $60.00 (Amount of student's repayment)
The Financial Aid Office will perform this process of “Return of Title 4” funds and send a letter to notify the student of his/her repayment responsibility.
If the student received student loan fund(s), returns and repayments will be forwarded to the student loan lender to credit the student's loan account. If no student loan funds were awarded, then all payments will be returned to the financial aid program funds in the order specified by the Department of Education.
You will not owe on the money that you earned from the Federal Work Study Program.
Consequences of Outstanding Repayments Obligation:
A student who fails to return the unearned Federal Financial Aid funds or to make satisfactory repayment arrangements with our office will be referred to the U.S. Department of Education.
Until the repayment issue is resolved, the student's record will be "flagged" each time the student files a Free Application for Federal Student Aid (FAFSA). A student owing repayment of financial aid funds is ineligible for financial aid at any institutions in the
Overpayment / Overaward
Overpayment and/or overaward may occur during the financial aid process. The Federal and state regulations do not allow students to receive aid which exceeds their financial aid eligibility. An overaward may occur in the following situations:
- change in budget or housing status
- unreported aid from outside resources (scholarships, grants, stipends, etc.)
- an increase in family contribution as a result of corrections made to the Student Aid Report (SAR)
- changes in enrollment status
- human error in calculation or data entry of an award(s)
- aid awarded after initial award notification
Students are required to repay any assistance for which they are determined to be ineligible.