3.14 Return of Title IV Funds Policy

East Central College complies with the Federal Return of Title IV Funds requirements as added to law by the Higher Education Amendments of 1998 (Public Law 105-244) and found in section 488B of the Higher Education Act of 1965, as amended.

Procedures:

3.14.1 Students are required to earn Title IV financial aid by attending classes beyond the 60% point of the semester for which aid was received. Students who withdraw from or stop attending classes prior to completing 60% of the semester are subject to a recalculation of their Title IV financial aid as directed by the Federal Return of Title IV Funds policy.

A. Title IV Funds refers to Federal financial aid programs authorized under the Higher Education Act of 1965, as amended. Title IV Funds include Subsidized and Unsubsidized Stafford Loans, PLUS Loans, Federal Pell Grants, Federal SEOG Grants, and LEAP grant funds.

B. A student’s withdrawal date is determined by the Financial Aid Office in accordance with federal guidelines.

C. Title IV financial aid is earned in a prorated manner by attending classes up to and including the 60% point in the semester. Title IV financial aid is considered 100% earned by attending classes beyond the 60% point in the semester.

D. The Financial Aid Office will utilize a formula dictated by the Federal Return of Title IV Funds policy to assign responsibility to both East Central College and the student for returning unearned Title IV financial aid to the Title IV programs.

E. Students are responsible for payment of any outstanding balance on their East Central College account resulting from their withdrawal and the return of Title IV funds.

(Adopted 9-11-2000)