U.S. Department of Education Return of Title IV Funds Policy
Repaying Unearned Federal Financial Aid
Students who have been paid federal financial aid funds are required to earn these funds by attending classes through at least 60% of the period of enrollment and by successfully completing the classes (successful completion does not include grades: H, W, WX, I, F). Students who quit attending or withdraw from all courses prior to the 60% point in the semester, but have already received their federal financial aid disbursement for the semester, may have been overpaid. If an overpayment occurs, the student is required to repay a portion of the funds to the school and/or to the U.S. Department of Education.
Which financial aid funds are affected?
The federal repayment policy, established by the U.S. Department of Education, through the reauthorization of the Higher Education Act of 1965, as amended in 1998, affects students who have received assistance through the following federal financial aid programs (in which ECC participates):
- Federal Pell Grant
- Federal Supplemental Education Opportunity Grant (SEOG)
- Federal Direct Subsidized and Unsubsidized Loans
Attendance in class is key in determining the amount of financial aid you earn
The longer a student remains in attendance, the smaller the amount of overpayment he or she will owe.
Students who remain in attendance through at least the first 60% of the semester, but later officially withdraw from the College, will not be required to repay any portion of their federal financial aid.
How is the overpayment amount determined?
The overpayment amount is based upon the number of days in the semester the student has completed. The more days the student has been in attendance, the less the overpayment requirement will be. A federally mandated formula is used to calculate the amount of the overpayment.
Example: Student withdraws on 57th day of semester Formula: enrolled days/days in enrollment period =% of aid earned 57/121 = 47.1% of aid earned. 52.9% of funds received by the college must be returned to the appropriate federal aid program.
How does the school determine my last date of attendance?
Attendance is determined through the official withdrawal records of the College and attendance information reported by faculty. If you are not attending classes, you are expected to complete the official withdrawal process of the College. The last date of attendance is the last day you attended class or other documented academic related activity.
If you enroll, never attend, and do not officially withdraw from classes; you will be responsible for a 100% overpayment of any federal aid disbursements you receive. To complete the withdrawal process contact the Student Services Center in Buescher Hall or the Registration staff at your satellite location.
Will this affect me if I withdraw from an individual course?
This policy only applies to students who:
- Withdraw from all classes prior to the 60% point of the semester
- Students who fail all their classes and cease attendance prior to the 60% point of the semester.
It does not apply to a student who has withdrawn from selected courses.
Do I send the amount of my overpayment to the school or to the U.S. Department of Education?
If an overpayment of federal financial aid occurs, the student may be required to return a portion of the overpayment to the school and to the U.S. Department of Education. The College will bill the student for the total overpayment and allow 45 days for repayment. Any unpaid balance of a required overpayment due to the U.S. Department of Education will be reported to them after 45 days. Students who owe an overpayment to the U.S. Department of Education will be ineligible for federal aid at any school. Any unpaid balance due to the school will be subject to collection action.
Post Withdrawal Disbursement (PWD)
If you did not receive all the funds that were earned prior to withdrawing, a PWD may be due. If the PWD includes grant funds, they will be processed within 45 days. If the PWD includes loan funds, you must give permission before the funds can be disbursed. PWD loan funds will be offered within 30 days, and you will have 14 days to accept or decline the funds. All PWD funds are applied to your account with the college and any amount due before any refund is prepared for you (in the event of a refund due to you, it will be processed as soon as possible but no later than 14 days from when any credit balance was created).
Order of Return
The calculated amount of funds to be returned is sent back in the following order (for programs in which ECC participates):
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Federal Pell Grants
- Iraq & Afghanistan Service Grants
- Federal Supplemental Education
Opportunity Grant Program (FSEOG)
Timeframe
The Return of Title IV process will be handled as quickly as possible after you quit attending or have withdrawn from all classes but no later than 45 days after that determination has been made.