Return of Title IV Funds Policy
Students earn their federal financial aid based on the percentage of the term that they have completed. Students who wish to completely withdraw from their courses must officially withdraw at the Records and Registration Office. A student, who completely withdraws at or before 60% of the term, may have to return a portion of their unearned, federal financial aid. They may owe tuition, fees or a repayment of federal funds.
A Return of Title IV Funds calculation determines the percentage of financial aid students have earned. This is based on the number of calendar days students attended, divided by the number of days in the enrollment period. For example, if a student completed 20% of the payment period, they earn 20% of the federal funds that they were originally scheduled to receive.
In order to determine the amount of the semester a student completed, the Return of Title IV Funds calculation will use the student’s last date of attendance. For students who officially withdraw, the date of withdraw will be considered the student’s last date of attendance for calculation purposes. For students who do not officially withdraw, it is assumed that the student attended 50% of the enrollment period, unless otherwise documented by the instructor. Students who do not earn any passing grades, and have a combination of XA, NA, W, MP or F grades, are considered to be “unofficial withdrawals”. Their federal aid eligibility will be recalculated as described in this policy.
Camden County College must return funds, based on calculations, up to the total net amount from each source, in the following order: Unsubsidized Federal Direct Loan, Subsidized Federal Direct Loan, PLUS Loan, Pell Grant, Federal SEOG and any other Title IV programs. The return of funds must be completed no later than 45 days after the date the school determined the student withdrew.
The school will return the lesser amount of the aid to be returned, as compared to the institutional charges, multiplied by the percentage of unearned aid. The student will also be responsible for returning a percentage of unearned financial aid. This amount will be the difference between the amount of Title IV aid due from the school, and the amount of Title IV aid to be returned. Any federal grant funds that a student is required to repay will be returned to the Department of Education by the institution, on the student’s behalf. The student will return any unearned loan amounts in accordance with the terms of the promissory note.
The student will be responsible to pay any unpaid charges incurred by the institution having to return Title IV funds.
If the student did not receive all of the funds earned, they may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, the institution must get the student’s permission before the funds can be disbursed. The student may choose to decline all, or part, of the loan funds, so they do not incur additional debt. Students who wish to have loan funds credited to their account will need to make the request in writing to the Financial Aid Office within 14 calendar days of receiving their notification letter.
There are some Title IV funds that a student may have been scheduled to receive that cannot be disbursed to a student once they have completely withdrawn because of other eligibility requirements. For example, if a student is a first-time, first year, undergraduate student and has not completed the first 30 days of their program before they withdraw, they will not receive any Federal Direct Loan funds that they would have received, if they had remained enrolled past the 30th day.
Once the institution has determined that a student has completely withdrawn, a Return of Title IV Funds calculation will be performed within 45 days. The institution will notify the student in writing of their revised eligibility after the Return of Title IV Funds calculation is completed. If the student owes unpaid tuition and fees, the student will receive an updated invoice from the institution.