Financial Aid Office
Student & Administrative Services Center, Rm. 1013 · (570) 327-4766 or (800) 367-9222 · Fax: 570.321.5552
Federal Title IV Refund Policy
The College is required to implement this federal policy that applies to all full-time and part-time students receiving Title IV financial aid who withdraw, are dismissed, stop attending, or take a leave of absence from the College during the billing period in which he or she is enrolled.
Earned Title IV Funds are used to cover educational costs according to the length of time the student was enrolled (prior to withdrawal, dismissal, stopped attending or leave of absence). The amount of funds earned is directly proportional to the time the student was enrolled, through 60% of the term. After 60% of the term is complete, the student is considered to have earned all aid received. To calculate the Title IV funds percentage, divide the number of days completed (prior to withdrawal, dismissal, stopped attending or leave of absence) by the total days in the billing period.
Unearned Title IV Funds are equal to the amount of grant and loan assistance awarded under Title IV that has not been earned by the student during the period of enrollment. The law requires that Title IV funds be used to cover only the length of time the student was enrolled before withdrawal, dismissal, stopped attending, or leave of absence. Unearned funds must be returned to the programs once the student is no longer enrolled. Determine the unearned Title IV percentage by subtracting the earned Title IV percentage (above) from 100%. To calculate the amount that must be returned, multiply the unearned Title IV funds percentage by the total amount of federal financial aid disbursed.*
*Total disbursed federal financial aid includes aid that was disbursed and aid that could have been disbursed by the student's withdrawal date. (disbursed = paid out)
Withdrawal Date
- The date the student began the withdrawal process
- The date the student otherwise provided the College with official notification of intent to withdraw, or
- For the student who does not initiate the withdrawal process or notify the College of the intent to withdraw, the College will determine the withdrawal date based on:
- the mid-point of the payment period or period of enrollment for which Title IV assistance was disbursed (unless the institution can document a later date);
- the confirmed last date of attendance via faculty of scheduled courses
Repayment
The responsibility to repay unearned Title IV funds is shared by the College
and the student.
The College's share is the lesser of:
- The total amount of unearned Title IV funds; or
- Institutional charges incurred for the billing period multiplied by the percentage of aid that was unearned.
The College's share is allocated among the Title IV programs in the following order of return:
- Federal Unsubsidized Stafford Loan
- Federal Subsidized Stafford Loan
- Federal PLUS Loan
- Federal Pell Grant
- Academic Competitiveness Grant (ACG)
- National SMART Grant
- Federal SEOG
- Other Title IV assistance for which a return of funds is required
Student's share = the difference between unearned Title IV funds and the College's share.
The student's share is the difference between the unearned Title IV funds and the College's share.
Sample worksheets and refund examples are available for review in the Financial Aid Office.
Effective November 2004
Any student who does not achieve at least one passing grade, "D" or
better, will be subject to the new provision of Title IV aid that prorates
financial aid based on the last date of attendance. Title IV aid that you are
entitled to will be re-calculated and any unearned portion will be returned.
Federal Pell, ACG, National SMART Grant, Federal loans, and FSEOG are affected by this provision based on
attendance records kept by faculty. You will then owe the College for these
returned funds.