Return of Title IV Federal Financial Aid Funds
The law specifies how Trinidad State College must determine the amount of Title IV program assistance that you earn if you withdraw from school. Title IV programs covered by this law include: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loan, Direct Plus Loans, Federal Supplemental Educational Opportunity Grants and Federal Perkins Loans.
When a Title IV aid recipient completely withdraws from TSC prior to the end of the term, a refund of the aid will be calculated. The calculation will be based on the number of days attended compared to the total number of days in the semester. Withdrawal after 60% of the term is not subject to the return calculation. Aid used for tuition, fees, books, and room/ board, will be refunded by both the student and the College.
The withdrawal date will need to be determined in order to calculate the amount to be returned. This will be the date the student began the withdrawal process with the Student Services Office, or otherwise provide the institution with notification of intent to withdraw. If the student drops without any notification, the midpoint of the term (50% aid returned) will be used as the withdrawal date or the student’s last date of attendance at a documented academically related activity. If the withdrawal process was not begun because of illness, accident, or similar circumstance beyond the student’s control the institution will determine the appropriate withdrawal date. If at the end of the semester the student receives all W’s, F’s or a combination, the actual last date of attendance will be used.
The College will return to the Title IV programs, the amount based on the standard calculation. That amount is now due to the College by the student. Additionally, the student will return any remaining unearned Title IV funds. (If the student needs to return funds to the Pell or SEOG programs based on the return priority, they need to return no more than 50% of the original amount). Students have 45 days to repay their portion. Shortly after 45 days have elapsed from the date the student was informed in writing of their repayment obligation, If the student has not repaid the overpayment in full, the College will report the overpayment to Enterprise Recovery System (ERS) for collection. The College will bill the student and it becomes the debt of the College. The student will remain eligible for Federal Title IV aid at any post-secondary institution. The loan amounts the student needs to return will be repaid according to the regular repayment schedule for the loan. The school refund to the loan will be credited to the original loan amount.
Example: Estimate of the amount of aid you may earn and the amount the student may have to
A student received a Pell Grant for $1,563 for full time enrollment of 12.0 credit hours. Student charges for the term totaled $726.20. The student completed 30 calendar days of the 111 days of the term.
|Original Pell Award
|Student withdraws after attending 30 calendar days (30/111)
|Percentage of Title IV aid earned 27% Amount of Title IV aid earned
|Pell award amount of Title IV aid unearned (Title IV aid to be returned)
|Institutional Charges incurred by student
|Percentage of Title IV aid unearned
|Institutional Charges unearned
|Title IV Aid to be returned by student, computed as follows:
|(Original award - institutional charges) = student amount x percentage unearned / 2 = total amount student must repay ($1563 - $726.20) x 73% = 610.86 /2 = $305.43 $305.43
|Pell Funds to be returned to the Department of Education by the institution
|Pell Funds to be returned to the Department of Education by the student
The amount of the post-withdrawal disbursement is the difference between the amount
of Title IV funds disbursed and the amount earned.
A College may not make a post-withdrawal disbursement of any of the following Title IV funds:
- Second or subsequent Direct Loan disbursements to a student who did not graduate or successfully complete the loan period.
- Direct Loan disbursement to a first-time, first year undergraduate who withdrew before completing the first 30 days of their program at a College that is not exempt from the delayed delivery/disbursement requirement.
- Direct Loan or Federal Perkins Loan disbursement to a borrower who has not signed the loan’s promissory note.
- Disbursements of any Title IV funds to students for whom the College did not receive a valid Institutional Student Information Record (ISIR) or Student Aid Record (SAR) prior to the student withdrawing or by the annual deadline published by the U.S. Department of Education in the Federal register.
- Federal Pell Grant, FSEOG or Perkins Loan disbursement for a subsequent payment period to a student who withdrew from a non-term credit hour program before completing the previous payment period for which the student has been paid.
Post-withdrawal notification requirements:
- The notification must include the information necessary to make an informed decision on whether the student or parent would like to accept the disbursement.
- The notice must be sent within 30 calendar days after the date that the College determines the student withdrew.
- The notice must permit the parent/student to determine which funds, if any, they wish to accept/decline.
- The notice must also advise that if there is no response within 14 calendar days that the College is not required to make the post-withdrawal disbursement and funds will be returned to the Title IV programs.
- If the notification is received from the student/parent within 14 days, the College must disburse loan funds within 180 days and grant funds within 45 days. If authorization is received after the 14 day deadline, the College must notify the student or parent that the disbursement will not be made and why.
The order of return of Title IV funds will be as follows:
- Unsubsidized Stafford Loans
- Subsidized Stafford Loans
- PLUS Loans
- Federal Pell Grant
- Federal SEOG
Within 45 days from the date the College determined that the student withdrew, the College will return unearned funds for which the College is responsible.
- Within 30 days from the date the College determined that the student withdrew, the College will offer a post-withdrawal disbursement, if applicable.
- A student that does not repay the grant overpayment in full to the College, or enter a repayment agreement with the College or U.S. Department of Education within the earlier of 45 days from the date the College sends a notification to the student of the overpayment, or 45 days from the date the College was required to notify the student of the overpayment will lose their eligibility for Title IV funds.
- The letter sent to the student must inform her/him of the dollar amount owed, the method for repaying the funds, and to whom, as well as the consequences of failing to repay the funds. If the student repays the funds to the College, the financial aid office will be responsible for returning the unearned funds to the proper program.
- Shortly after 45 days have elapsed from the date the student was informed in writing of their repayment obligation, if the student has not repaid the overpayment in full:
- The College will report the overpayment to National Student Loan Data System (NSLDS).
- The College will refer the student’s overpayment to the U.S. Department of Education for collection. The referral must be on College letterhead.
- The College must report any satisfactory payment arrangements on NSLDS and correctly change the status code within NSLDS to reflect the same.
The fees, procedures, and policies listed above supersede those published previously and are subject to change at any time. Financial aid policies not listed here are available in the Financial Aid Office.
Consequences of Withdrawing
Federal funds may not cover all unpaid institutional charges due to the institution upon the student’s withdrawal. Therefore, you may still owe funds to the school to cover unpaid institutional charges. This includes Title IV program funds that the school was required to return on your behalf. Refer to Trinidad State College’s Refund Policy at http://www.trinidadstate.edu/admissions/withdraw.html.
You will not be able to register for future terms or obtain transcripts until the balance you owe Trinidad State College is paid in full. Failure to pay the balance in full within 45 days may result in your account being referred to Enterprise Recovery System (ERS). In addition, you may be placed on an ineligible status for financial aid. Refer to Trinidad State College’s Satisfactory Academic Progress Policy at https://www.cccs.edu/sp-4-20c-return-of-title-iv-funds/.