Withdrawals Refunds and Repayments
|RETURN OF TITLE IV FUNDS POLICY|
|College Refund Policy|
When a student withdraws from the college, refunds will be returned to the programs from which the student received aid. The date of withdrawal is determined by the Registration and Records Office and is based upon the date the Withdrawal Form is completed including all signatures and is submitted to the Registration and Records Office. Refunds are processed according to the REFUND POLICY.
Withdrawals and Return of Title IV Funds
Students receiving Title IV funding (Federal Pell Grant, Supplemental Educational Opportunity Grant or William D. Ford Federal Direct Loans) who completely withdraw from classes are required to have earned aid evaluated through the federal formula established in the 1999 federal financial aid reauthorization. Unearned aid is returned to the federal financial aid programs. Students not receiving Federal Title IV financial aid, who paid for all expenses out-of-pocket, may receive a refund based on institutional policy. The amount of federal funds returned to the federal programs will be determined based on the date the withdrawal process begins or the last date of attendance. If the date the withdrawal process begins or last date of attendance is not available or known, the federal refund will be based on the 50% point of the semester. Return of Title IV funds will not be computed after the 60% point of the semester.
It is the policy of Fayetteville Technical Community College’s Financial Aid Office to determine the amount of earned and unearned portions of Title IV aid as of the date the student ceases attendance in accordance with federal regulations and the Return of Title IV Funds process as dictated in Volume 5 of the Student Aid Handbook. This policy applies to all students receiving Title IV funds who do a complete withdrawal on or before the 60% date of each term. For students who completely withdraw after the 60% date, FTCC will still need to determine if they’re eligible for a post-withdrawal disbursement according to federal regulations.
Federal regulations require the college to have a fair and equitable refund policy for students receiving financial aid who officially or unofficially withdraw from all classes. Withdrawing or stopping attendance may result in financial debt for the student and may also make the student ineligible for future financial aid, including loans. We strongly urge students to consult with a financial aid staff member to help them with decisions about withdrawing.
Recalculation is based on the percent of earned aid using the following formula:
# of days completed up to the withdrawal date** ÷ by the total days in the semester = percent of aid earned
The federal aid for institutional charges is returned to the federal government based on the percent of unearned aid using the following formula:
100 percent of your award - percent of aid earned = what will need to be returned to the US Department Education
Financial Consequences of Withdrawing or Not Passing Classes
Federal regulations assume that students earn financial aid over the course of a term by attending and participating in classes. Students cannot earn all of the funds unless they maintain attendance and class participation for more than 60% of the term. This calculation counts all calendar days including the first and last day of each term, weekends and holidays. If the student completely withdraws from all classes, receives all F’s, W’s and Incompletes before 60% point in the term, the student may have to repay any unearned financial aid funds that were already disbursed.
In general, federal regulations assume that students “earn” federal financial aid in direct proportion to the percentage of the term they complete. If students completely withdraw during a term, the College calculates, according to a federally-mandated formula, the portion of the total scheduled financial assistance earned, and therefore entitled to receive, up to the time of withdrawal. If the student or college receives more assistance than is earned, the unearned excess funds must be returned to the US Department of Education. On the other hand, if less financial assistance is received than the amount earned, additional funds may first be applied toward outstanding institutional charges and any excess paid to the student.
The portion of the Federal student aid the student is entitled to receive is calculated on a percentage basis by comparing the total number of days in the term to the number of days completed before withdrawing. For example, if 30% of the term is completed, the student earns 30% of the assistance scheduled to be received.
If a withdrawal occurs after the 60% date, the student will have earned all of the financial aid received and no Return of Title IV funds will be required.
If the student completely withdraws, earned aid will be calculated based on the percentage of the term completed, resulting in possible repayment of any unearned aid. Students are encouraged to search for resources to assist them in completing even one class, such as tutoring.
When the student stops attending without officially withdrawing and receives a “W”, “F” or “I” grade. At the end of each term, Financial Aid staff review last date of attendance records for students who did not officially withdraw. If this date is earlier than the official withdrawal date, it will be used in the Return of Title IV funds calculation.
Student Fails to Earn a Passing Grade
If a student fails to earn a passing grade (all F’s) in at least one course, the College must assume an unofficial withdrawal and perform R2T4 calculation at the 50% point of the semester.
A calculation is not required when the College can document that the student completed the period or the student earns at least one passing grade.
Repayments to Programs
If a student has received a credit balance prior to the date of withdrawal and the student’s indirect educational expenses up to the time of withdrawal exceed the amount of financial aid disbursed for the semester, the student does not owe a repayment. If the cash disbursed for the semester to the student exceeds the indirect educational costs, as determined by the Financial Aid Office up to the time of withdrawal, the student does owe a repayment. The repayment owed is the difference between the actual credit balance granted to the student and the expenses incurred (or the amount the student is eligible to retain).
The Financial Aid Office must determine reasonable costs incurred during the period to the date of withdrawal (or during the period of enrollment). Reasonable costs are those expenses that may already have been incurred and are included in the estimated cost of attendance budget used by the Financial Aid Office. These costs are based on the students’ tuition and fees, books and supplies and other indirect expenses incurred by the student. The amount to be repaid is determined by using the Overpayment Calculation sheet. If the student drops or cancels classes, decreases or cancels eligibility for financial aid, any balance owed to the College is the STUDENT’S RESPONSIBILITY.