Withdrawals and Overpayments - Return of Title IV Funds
The
Higher Education Amendments of 1998, Public Law 105-244 require colleges
to calculate
the Return of Title IV Funds Policy when a recipient of Title
IV aid (new or
returning) completely withdraws from the college through the 60% point during
a payment period. The institution must calculate the amount(s)
of Title IV aid the student earned and return the unearned portion(s)
of the Title IV fund(s) to the Title IV program(s). In some calculations, the
institution and student will be
required to return unearned Title IV funds to the Title IV programs.
Students
officially begin the withdrawal process when they notify the Admissions/Records
Office.
Students are given an official withdrawal form to complete, sign and date. The
Financial Aid Office will use the date the student signs the
form as the official withdrawal date. Withdrawal dates are also determined
when
an
instructor completes an Instructor Withdrawal Form. If the student does not officially
begin the withdrawal process by notifying the Admissions and
Records Office and the instructor does not complete an instructor
withdrawal form, the Financial Aid Office can use the date the student otherwise
provided official notice of
intent to withdraw by contacting the institution.
At this point, the Financial Aid Office must determine if the student was a recipient of Title IV funds who
withdrew prior to the 60% point and perform the Return of Title IV Funds calculation. If it is determined that
the student received an overpayment, the Financial Aid Office is required to send written notification to the
student informing the student of the amount owed and the Title IV program to repay. This notification must
be sent to the student, no later than thirty calendar days after the date the Financial Aid Office is notified the
student withdrew. The student has a 45-day period to take positive action by contacting the Financial Aid
Office. By the 46th day, if the student has failed to take positive action, the student’s overpayment will be
referred to the Department of Education for collections and the overpayment will immediately be reported to
NSLDS (National Student Loan Data system). The student’s eligibility for Title
IV funds ends.
Students that take positive action within the 45-day period are eligible to extend their Title IV eligibility by
repaying the overpayment in full to the school or by signing a repayment agreement with the Business Office.
If a student goes into repayment, they will have three months to repay the overpayment. The student will be
required to repay 10% of the total overpayment (each payment) owed for the first two months with the
balance to be paid in full by the third month. Any time the student fails to meet the terms of the repayment
agreement, the student’s overpayment will be referred to the Department of Education for collections and
immediately reported to NSLDS. The student’s eligibility for Title IV funds ends.
If the Return of Title IV Funds calculation is performed and it determines that the student received less
Title IV funds than the amount earned, the institution must make a post-withdrawal disbursement to the
student of the earned aid that was not received. In order to make a post-withdrawal disbursement for
incurred educational costs, the school must have received the student’s valid
Student Aid Report (SAR) or Institutional Student Information Record (ISIR) with
an official Expected Family Contribution (EFC). To be
eligible for a post-withdrawal disbursement, the student must meet all Federal
Guidelines outlined by the Department of Education. | 
