4.18.7 Return to Title IV Funds
last revised: Nov-2018
The Higher Education Amendment of 1998 requires institutions to calculate the amount of Title IV aid earned by students who completely withdraw from the institution before completing 60 percent of the enrollment term. Richland Community College must calculate the amount of Title IV funds the student earned for the period enrolled before withdrawing. This process requires Richland to determine whether any Title IV funds received by or on behalf of that student must be returned or if the student is entitled to further disbursements of awarded Title IV funds. A student who attended more than 60 percent of the payment period will earn 100 percent of their aid.
The last date of attendance is determined in one of two ways. If a student officially withdraws from the institution, your last date of attendance is the date you began the withdrawal process or notified the institution of your withdrawal. An unofficial withdrawal occurs when a student stops attending classes, but does not notify the institution of the withdrawal. The Financial Aid Office will research to find the last date of attendance by contacting Instructors, using Canvas, and receiving drop reports. If a student has ceased to attend all classes, the latest date of attendance in all classes will be used in the calculation.
The return of Title IV funds formula calculates the amount of Title IV aid to which a withdrawn student is entitled in direct proportion to the percentage of the period that the student attended. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. If the amount disbursed to the student is less than the amount earned, and for which the student is otherwise eligible, the student is eligible to receive a post-withdrawal disbursement of the earned aid that was not received. Richland Community College will return funds in the following order:
- Direct Unsubsidized loan
- Direct Subsidized loan
- Direct PLUS loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
Richland will notify the student within 30 days if they are required to repay a portion of their financial aid for the term. Richland will return funds within 45 days to the U.S. Department of Education.