Policy 4.11 - Return to Title IV Funds
The Higher Education Amendments of 1998 changed the formula for calculating the amount of aid a student and the school may keep when the student totally withdraws or ceases attending all classes. Effective October 7, 2000, students who withdraw from all classes prior to completing more than 60 percent of an enrollment term will have their eligibility for aid recalculated based on the percent of the term completed. For example, a student who withdraws after completing only 30 percent of the semester will have earned only 30 percent of any Title IV aid received. The remaining 70 percent must be returned by the school and/or student. Students should read this policy carefully and consult the Financial Aid Office before withdrawing from all classes.
- This policy shall apply to all students who withdraw, drop out, or cease attending all classes at Southeastern Community College and receive financial aid from Title IV funds:
- The term “Title IV Funds” refers to the Federal financial aid programs authorized under the Higher Education Act of 1965 (as amended) and includes the Federal Pell Grant, Federal SEOG, Federal Stafford Loan.
- A student’s withdrawal date is:
- the date the student began the institution’s withdrawal process (as described in SCC’s catalog), or
- the midpoint of the semester for a student who leaves without notifying the institution, or
- the student’s last day of attendance at a documented academically-related activity.
- the student’s last date of assignment activity for online classes.
- Refunds on all institutional charges, including tuition and fees, will be calculated using the state refund policy which is completed electronically via the state grant portal.
- Title IV aid is earned in a prorated manner on a semester basis up to and including the 60 percent point. Title IV aid is viewed as 100 percent earned after the 60 percent point of the semester.
- The percentage of Title IV aid earned shall be calculated as follows:
- Number of days completed = Percent of semester completed
- Total number of days in semester
- The percent of semester completed shall be the percentage of Title IV aid earned by the student.
The total number of calendar days in a term of enrollment shall exclude any scheduled breaks of more than five days.
- The percentage of Title IV aid unearned shall be 100 percent minus the percent earned.
- Unearned aid shall be returned first by SCC from the student’s account calculated as follows:
- Federal Pell Grant
- Federal SEOG
- Other Title IV grant programsTotal institutional charges x percent of unearned aid = amount returned to program(s)
Unearned Title IV aid shall be returned to the following programs in the following order:
Exception: No program shall receive a refund if the student did not receive aid from that program.
e. When the total amount of unearned aid is greater than the amount returned by SCC from the student’s account, the student is responsible for returning unearned aid to the
appropriate program(s) as follows:
- Federal Pell Grant**
- Federal SEOG**
- Other Title IV grant programs**
4. Refunds and adjusted bills will be sent to the student’s home address on file in the Records Office following withdrawal. Students are responsible for any portion of their institutional charges that are left outstanding after Title IV funds are returned.
5. Institutional and student responsibility in regard to the return of Title IV funds.
- SCC’s responsibility in regard to the return of Title IV funds includes:
- providing each student with the information given in this policy,
- identifying students who are affected by this policy and completing the Return of Title IV Funds calculation for those students,
- returning any Title IV funds that are due the Title IV programs,
- collecting from student any amount that the institution had to pay for textbooks and supplies.
- The student’s responsibility in regard to return of Title IV funds include:
- becoming familiar with the Return of Title IV Funds policy and how complete withdrawal affects eligibility for Title IV aid,
- notifying Records Office of withdrawal by completing withdrawal form,
- returning to the Title IV programs any funds that were disbursed directly to the student and which the student was determined to be ineligible for via the Return of Title IV Funds calculation,
- reimbursing SCC for any funds the institution had to pay for textbooks and supplies.
6. The fees, procedures, and policies stated above supersede those published previously and are subject to change at any time.
Adopted: July 13, 2020