Refunds & Return of Title IV Funds
If you withdraw, stop attending, drop all classes or receive all Audit, F, NC or I grades, this applies to you.
In order to qualify for a refund of tuition and fees, you are required to notify the College when you are dropping a class or classes or are completely withdrawing from all classes by completing a Schedule Change Form and submitting it to the Welcome Center (Columbia Hall room 109). A 100% refund of tuition and fees (excluding non-refundable fees) will be issued if you withdraw or drop classes during the first week of the term. If you withdraw or drop classes after the first week, no refund will be issued except for financial aid students who completely withdraw from all classes. Refunds of tuition and fees for financial aid students are returned to the Department of Education and not to you the student. If you completely withdraw from all classes between the beginning of the second week of classes through the 60% point of the term, you will receive a refund of tuition and fees based on the percentage of the term not completed. Refunds of tuition and fees for financial aid students will be returned to the Federal Student Aid Programs, and not to the student, in the order listed below:
- Unsubsidized Federal Direct Loan Program
- Subsidized Federal Direct Loan Program
- Federal Pell Grant Program
- Federal SEOG Program
- Other Federal Financial Aid Programs
Refunds of tuition and fees for financial aid students will be processed within 30 days of the withdrawal date or the date of determination of withdrawal, whichever is later.
If you stop attending during the first 60% of the term and do not withdraw, the College may be required to refund to the Department of Education all or a portion of the financial aid that was used to pay your tuition and you may be billed for the tuition payment that was refunded. You will owe this tuition to the College if you do not formally withdraw during the first week of the term.
The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are 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 your aid is posted to your account at the start of each period, you earn the funds as you complete the period. If you withdraw during your payment period or period of enrollment (your school can define these for you and tell you which one applies), the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.
The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). The school needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission (some schools ask for this when you enroll), 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.
There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements.
If you receive (or your school or parent receive on your behalf) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of:
- your institutional charges multiplied by the unearned percentage of your funds, or
- the entire amount of excess funds.
The school must return this amount even if it didn’t keep this amount of your Title IV program funds. If your school is not required to return all of the excess funds, you must return the remaining amount.
Any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with your school or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when you withdraw are separate from any refund policy that your school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any Title IV program funds that the school was required to return. If you don’t already know your school’s refund policy , you should ask your school for a copy. Your school can also provide you with the requirements and procedures for officially withdrawing from school.
If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web at www.studentaid.ed.gov .