Financial Aid
Return of Title IV Funds

The Return of Title IV Funds calculation is required when a student has withdrawn, officially or unofficially, from all enrolled courses during a period of instruction at the institution. Students, who withdraw from some courses, but not all enrolled courses, may be subject to other calculations based upon their new enrollment status.

Title IV funds to be included in the Return of Title IV calculations are defined as: Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Direct Student Loan (subsidized and unsubsidized), Federal Perkins loan, and the Federal PLUS loan.

Note: Students who are only awarded Federal College Work-study funds are not subject to the Return of Title IV calculations.

Any student documented to have been in attendance beyond 60% of the term will not be subject to return calculations.

As a general rule, CNCC is not required to take attendance; the financial aid office will obtain the last date of attendance from the instructor to be used as the last date of attendance date for the Return of Title IV calculations.

When a student withdraws from all classes or ceases to attend before 60% of the term has elapsed, he/she establishes a withdrawal date.

Official withdrawals: The withdrawal date is the date the student completes the withdrawal form. When all classes receive a W the withdrawal date is the last date that a student withdrawal was initiated.

Unofficial withdrawals: The withdrawal date is the last date of academically related activity.

A student who rescinds a withdrawal notice and gains reentry into class will not be subject to Return of Title IV.

Students with extenuating circumstances may not be able to officially withdraw. For these students the college will use the date the college determines the student is no longer in attendance.

Example: A student received a Federal Pell Grant for $1,875 for full time enrollment of 12 credit hours. Student charges for the term totaled $792.45. The student completed 38 calendar days of the 106 days of the term.

 

Original Pell Award

$1,875.00

Student withdraws after attending 30 calendar days (38/106) Percentage of Title IV aid earned 35.8%

 

Amount of Title IV aid earned

$671.01

Pell award - Amount of Title IV aid unearned (Title IV aid to be retuned)

$1,203.75

Institutional Charges incurred by student

$792.45

Percentage of Title IV aid unearned

64.2%

Institutional Charges unearned

$508.75

Title IV Aid to be returned by student (Original award - institutional charges = student amount X percentage unearned/2=total amount student must repay) ($1875-$792.45x64.2%=$695/2)

$347.50

Pell Funds to be returned to the Department of Education by the institution

$508.75

 

Please Note: A student must repay these funds if the amount owed by the student is at least $25. Failure to repay requires the college to report the student to the U.S. Department of Education causing ineligibility of future Title IV funds at ANY educational institution.

The college will return Title IV funds to the programs from which the student received aid during the period of enrollment as applicable, in the following order, up to the net amount disbursed from each source:

  1. Unsubsidized Direct Stafford loans
  2. Subsidized Direct Stafford loans
  3. Perkins loans
  4. Direct PLUS loans
  5. Federal Pell Grants
  6. Federal Supplemental Educational Opportunity Grants (FSEOG)

The College will notify the student in writing if they owe a Title IV grant repayment. The letter will inform the student of the dollar amount owed, the grant program, the method for repaying the funds and to whom, and 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 grant program.

In cases where a loan only was awarded to the student, the student will be notified if a return of Title IV amount has been sent to the lender, thereby reducing the student’s outstanding loan amount.

For a complete copy of this policy, contact the merrie [dot] byers [at] cncc [dot] edu (Merrie Byers) Employee Directory