When you apply for financial aid, you sign a statement that you will use the funds for educational purposes only. Therefore, if you withdraw before completing your program, a portion of the funds you received may have to be returned. Connors State College (CSC) will calculate the amount of tuition to be returned to the Title IV, HEA Federal fund programs according to the policies listed below.
RETURN TO TITLE IV, HEA FUNDS POLICY
This policy applies to students’ who withdraw officially, unofficially or fail to return from a leave of absence or dismissed from enrollment at CSC. It is separate and distinct from the CSC refund policy. (Refer to institutional refund policy)
Financial aid recipients whose circumstances require that they withdraw from all classes are strongly encouraged to contact the CSC Financial Aid Office and their academic advisor before doing so. At that time, the consequences of withdrawing from all classes can be explained. The CSC Financial Aid Office staff can provide examples of return of funds calculations and further explain this policy to students or parents.
The federal government requires that students who withdraw from all classes may only keep the financial aid they have “earned” up to the time of withdrawal. Title IV, HEA funds (except federal work-study) that were disbursed in excess of the earned amount must be returned by CSC and/or the student to the federal government. This situation could result in the student owing aid funds to CSC, the government, or both.
The calculated amount of the Return of Title IV, HEA (R2T4) funds that are required for the students affected by this policy, are determined according to the following definitions and procedures as prescribed by regulations.
The amount of Title IV, HEA aid earned is based on the amount of time a 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, HEA funds, the order of return of unearned funds do not include funds from sources other than the Title IV, HEA programs.
Title IV, HEA 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 student withdraws, he/she may no longer be eligible for the full amount of Title IV, HEA funds that were originally scheduled to be received. Therefore, the amount of Federal funds earned must be determined. If the amount disbursed is greater than the amount earned, unearned funds must be returned.
The institution has 45 days from the date that the institution determines that the student withdrew to return all unearned funds for which it is responsible and 30 days from that date to complete the R2T4 calculation. The school is required to notify the student if they owe a repayment via written notice.
The school must advise the student or parent that they have 14 calendar days from the date that the school sent the notification to accept a post withdraw disbursement. If a response is not received from the student or parent within the allowed time frame or the student declines the funds, the school will return any earned funds that the school is holding to the Title IV, HEA programs.
“Official” Withdrawal from the School
A student is considered to be “Officially” withdrawn on the date the student notifies the Admission’s Office in writing of their intent to withdraw. The date of the termination for return and refund purposes will be the earliest of the following for official withdrawal:
1. Date student provided official notification of intent to withdraw, in writing or orally.
2. The date the student began the withdrawal from CSC, records. A student is allowed to rescind his notification in writing and continue the program. If the student subsequently drops, the student’s withdrawal date is the original date of notification of intent to withdraw.
Upon receipt of the official withdrawal information, CSC will complete the following:
a. The students bursar bill and attendance record are reviewed to determine the
calculation of Return of Title IV, HEA funds the student has earned, and if any,
the amount of Title IV, HEA funds for which the school is responsible. Returns made to the Federal Funds Account are calculated using the Department’s Return of Title IV, HEA Funds Worksheets, scheduled attendance and are based upon the payment period.
b. Calculate the school’s refund requirement (see school refund calculation):
a. The amount of Title IV, HEA assistance the student has earned. This amount is
based upon the length of time the student was enrolled in the program
based on scheduled attendance and the amount of funds the student received.
b. Any returns that will be made to the Title IV, HEA Federal program on the
student’s behalf as a result of exiting the program. If a student’s scheduled
attendance is more than 60% of the payment period, he/she is considered to
have earned 100% of the Federal funds received for the payment period. In
this case, no funds need to be returned to the Federal funds.
c. Advise the student of the amount of unearned Federal funds and tuition and
fees that the student must return, if applicable.
In the event a student decides to rescind his or her official notification to withdraw, the student must provide a signed and dated written statement that he/she is continuing his or her program of study, and intends to complete the payment period. Title IV, HEA assistance will continue as originally planned. If the student subsequently fails to attend or ceases attendance without completing the payment period, the student’s withdrawal date is the original date of notification of intent to withdraw.
Unofficial Withdrawal from School
Any student who does not provide official notification of his or her intent to withdraw and is reported for nonattendance by all professors for a period of more than 2 weeks, or is failing all of his or her classes at midterm without documented academic related activity, or violates conditions mentioned in the CSC contractual agreement, will be considered to have unofficially withdrawn.
Within one week of our determination that the student may have unofficially withdrawn, the following will take place:
Withdraw Before 60%
During the first 60% of the semester, a student earns Title IV, HEA funds in direct proportion to the length of time he or she remains enrolled. Therefore, the percentage of time during the semester that the student remained enrolled is the percentage of disbursable aid for that semester that the student earned. A student who remains enrolled beyond the 60% point in the semester earns all aid for that semester.
50% point as the withdrawal date
In these cases, the return of federal funds calculation will use 50% as the unearned percentage to determine the amount of federal funds that must be returned by the institution and the student.
Student aid is considered dispersible if the student could have received it at the point of withdrawal. Total disbursable aid includes aid that was disbursed and aid that could have been (but was not) disbursed as of the student’s withdrawal date.
The percentage of the semester the student remained enrolled is derived by dividing the number of calendar days, including weekends, the student attended by the number of calendar days, including weekends, in the semester. Breaks of at least 5 days are excluded from both the numerator and the denominator. A student who receives all F grades or a combination of F, W, or AW grades is considered to have unofficially withdrawn from classes. A student receiving federal financial aid funds who drops out without notifying the institution is considered to have withdrawn at the midpoint of the semester, unless the institution can document a later date.
Withdraw After 60%
For a student who withdraws after the 60% point-in-time, there are no unearned funds. However, a school must still determine whether the student is eligible for a post-withdrawal disbursement. After the 60% point in the payment period, semester or period of enrollment, a student has earned 100% of the Title IV, HEA funds he or she was scheduled to receive during this period.
If you are a financial aid recipient and you officially withdraw or cease to attend any of your class before the 60% point in time for any semester, the Financial Aid Office must calculate whether or not you received more aid than you were entitled to for the period of time you were in school. This calculation is called a “Return of Title IV, HEA Funds” calculation, an example of which is shown below:
Jan Doe enrolled in the fall semester, which contains 80 calendar days, but officially withdrew from all classes on the 20th day of the semester. Her tuition and fee charges for the semester were $500.00. Jan was awarded and disbursed a Pell Grant for $1500 to pay her educational costs for the entire fall semester.
Percent of Pell Grant earned: 20 days attended = 25%
80 days in semester
Percent Pell Grant unearned: 100% – 25% = 75%
Amount of Pell Grant unearned: .75 X $1500.00 = $1125.00
CSC RETURNS TO PELL GRANT PROGRAM:
Less of: $500 X .75 = $375 or Amount of Pell Grant unearned = $1125
CSC returns $375 to the Pell Grant Program
STUDENT RETURNS TO PELL GRANT PROGRAM:
Amount of Pell Grant unearned: $1125
Minus Pell amount CSC returns: $ 375
(Student grant overpayment x .50
is reduced by half) $ 375
Jan Doe returns $375 to the Pell Grant Program.
Order of Return
CSC is authorized to return any excess funds after applying them to current outstanding Cost of Attendance (COA) charges. A copy of the Institutional R2T4 work sheet performed on your behalf is available through the office upon student request.
In accordance with Federal regulations, when Title IV, HEA financial aid is involved, the calculated amount of the R2T4 Funds” is allocated in the following order:
CSC must return its share of unearned Title IV, HEA funds no later than 45 days after it determines that the student has withdrawn. Students return their share of unearned aid attributable to a loan under the terms and conditions of the promissory note. Only one-half of unearned grant money must be repaid by the student. CSC may allow the student to repay unearned grant aid under a repayment arrangement satisfactory to the institution and in compliance with federal regulations.
Post Withdrawal Disbursement
The institution will offer any post-withdrawal disbursement of loan funds within 30 days of the date it determines the student withdrew.
The institution must disburse any Title IV, HEA grant funds a student is due as part of a post-withdrawal disbursement within 45 days of the date the school determined the student withdrew and disburse any loan funds a student accepts within 180 days of that date.
Post-withdraw disbursements will occur within 90 days of the date that the student withdrew.
If you did not receive all of the funds that you have earned, you may be due a post-withdraw disbursement. CSC may use a portion or all of your post- withdraw disbursement for tuition and fees (as contracted with CSC). For all other school charges, CSC needs your permission to use the post-withdraw disbursement. If you do not give permission, you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.
The post-withdrawal disbursement must be applied to outstanding institutional charges before being paid directly to the student.
Time frame for returning an unclaimed Title IV, HEA Credit Balance
If a school attempts to disburse the credit balance by check and the check is not cashed, the school must return the funds 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, the school may make additional attempts to disburse the funds, provided that those attempts are made not later than 45 days after the funds were returned or rejected. When a check is returned or EFT is rejected and the school does not make another attempt to disburse the funds, the funds must be returned before the end of the initial 45-day period.
The school must cease all attempts to disburse the funds and return them no later than 240 days after the date it issued the first check.
CSC’s responsibilities in regards to Title IV, HEA funds follow:
The institution is not always required to return all of the excess funds; there are situations once the R2T4 calculations have been completed in which the student must return the unearned aid.
Overpayment of Title IV, HEA Funds
Any amount of unearned grant funds that you must return is called overpayment. The amount of grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You must make arrangement with CSC or Department of Education to return the amount of unearned grant funds.
Student Responsibilities in regards to Return of Title IV, HEA funds
Refund vs. Return to Title IV, HEA Funds
The requirements for the Title IV, HEA program funds when you withdraw are separate from any refund policy that CSC may have to return to you due to a cash credit balance. Therefore, you may still owe funds to the school to cover unpaid institutional charges. CSC may also charge you for any Title IV, HEA program funds that they were required to return on your behalf.
If you do not already know what CSC refund policy is, you may ask your Schools Financial Planner for a copy.
Return to Title IV, HEA questions?
If you have questions regarding Title IV, HEA program funds after visiting with your financial aid director, you may call the Federal Student Aid Information Center at 1-800-4-fedaid (800-433-3243). TTY users may call 800-730-8913. Information is also available on student aid on the web www.studentaid.ed.gov.
*This policy is subject to change at any time, and without prior notice.