Total term withdrawals for students who are eligible for financial aid will be determined in keeping with Federal Financial Aid Regulations governing Title IV Refunds, and are performed independent of any tuition refunds. These refunds will be performed on all Title IV aid (Pell, SEOG and Iraq and Afghanistan Service grant money and Direct Loans) posted for the term, if a student withdraws from all classes in any one semester. Successful completion of a short session class prior to withdrawal does not exempt a student from the Return of Title IV Aid Policy. The following steps are used to determine amount to be refunded back to Federal aid programs.
Step 1: Determining Student’s Title IV Aid Eligibility
Paul D. Camp Community College participates in the following Title IV programs: Pell Grants, SEOG Grants, Iraq and Afghanistan Service Grants, Direct Loans, and Work Study. The total amount of aid that has been disbursed, or could be disbursed based on the student’s enrollment are added together to determine total aid eligibility. Work Study funds are already earned aid, and therefore excluded from the Return of Aid refund calculation. These funds are not added into the total eligibility.
Step 2: Determining the Percentage of Total Aid Earned Based on Attendance
Paul D. Camp Community College is not required to take attendance; therefore, the number of days a student has completed is based on the official date of withdrawal from the last class the student attended. The number of days the student completed is then divided by the total number of days in the semester, as determined by Title IV guidelines. This gives the percentage of the term completed. The amount of aid that was earned is based on this percentage.
Step 3: Determining the Amount of Title IV Aid Earned by the Student
The total amount of Title IV money the student was eligible for in Step 1 is multiplied by the percentage of the semester that was completed in Step 2. This is the total amount of aid the student earned for the semester.
Step 4: Determining Total Title IV Aid to be Disbursed or Returned
The amounts from Step 1 and Step 3 are compared. If the amount in Step 3 is greater, then the student is owed a disbursement. If the amount in Step 1 is greater and has been disbursed, then the student must refund unearned aid back to the College, to be returned to the Federal aid program. If the aid has not been disbursed, then a post-withdrawal disbursement is processed. If the amounts are equal, the student is neither owed, nor owes back a refund. Also, if the percentage in Step 2 is greater than 60%, no refund is owed to or from the student.
Step 5: Determining Amount Due from School
The school must return within 45 days’ time a portion of the unearned aid. In the case that a student owes money back, the earned amount in Step 3 is subtracted from the total eligibility in Step 1, and the leftover amount is considered unearned aid to be returned. Then the institutional charges will be multiplied by the percentage of unearned aid (100% minus percentage earned, from Step 2) to get the amount due from school. Student is then billed for amount due from school.
Step 6: Determining Order of Aid to be Returned
A school must return Title IV funds to the programs from which the student received aid during the payment period or period of enrollment as applicable, in the following order, up to the net amount disbursed from each source:
- Unsubsidized Direct Loans (Other than Direct PLUS Loans)
- Subsidized Direct Loans
- Federal Perkins Loans
- Direct PLUS Loans
- Federal Pell Grants for which a return is required
- Federal Supplemental Educational Opportunity Grants (SEOG) for which a return is required
- TEACH Grants for which a return is required
- Iraq and Afghanistan Service Grant, for which a return is required.
Step 7: Determining Initial Amount of Unearned Aid from Due from Student
In some cases, a student (or parent, for Direct PLUS Loan funds) will also owe an additional Title IV refund back to the school. Subtract amount due from school in step 5 from total amount unearned in step 4. It is PDCCC’s policy to return all unearned aid back to the Federal government, including any amount the student would normally need to repay directly to the government, in addition to the amount from Step 5.
Step 8: Determining Repayment of Student Loans
The student loans that remain outstanding consist of the loans disbursed to the student minus any loans the school repaid in Step 6. These outstanding loans are repaid by the student according to the terms of the student’s promissory notes.
Step 9: Determining Grant Funds to be Returned by Student
Multiply total eligibility amount in step 1 by 50% grant protection amount. Subtract remaining amount from amount due in step 7. The amount of grant overpayment due from a student is limited to the amount by which the original grant overpayment exceeds half of the total Title IV grant funds disbursed and could have been disbursed to the student. Aid is returned first to the Pell Grant program, as noted above.
Step 10: Notifying the Student
A letter is mailed to the student after Title IV refunds have been processed, if a refund is due to or from the student. If a student owes unearned aid back, the College will place a hold on the student’s records immediately after the calculation is performed and may take other actions if satisfactory repayment arrangements are not made within 45 days of the determination. Note that a complete term withdrawal may also result in a violation of Standards of Academic Progress.
The student is obligated to return any Title IV overpayment in the same order that is required for schools.
Overpayments may be resolved several ways, including:
- Full and immediate repayment to the institution;
- Repayment arrangements satisfactory to the school; or
- Overpayment collections procedures negotiated with Debt Resolution Services.