Refunds and Repayment of Title IV Funds

Refunds

Any student who completely withdraws from all classes and/or is dropped by their instructors and/or receives FW grades in all classes and has received Federal Pell Grant, FSEOG, Federal Direct Loans, or other Title IV funds will be required to repay any unearned portion to the appropriate Federal Fund.

The Financial Aid & Scholarships Department generates a list of students who have withdrawn, and/or were dropped by his/her instructors, and/or received FW grades in all classes from the enrollment management system. The list includes students who have been dropped from all classes by their instructors as well as those who have initiated the withdrawal themselves. Refund/repayment calculation worksheets are completed as soon as possible after each list is generated by the Financial Aid & Scholarships Department.

A refund calculation will be applied to all students who receive federal assistance and withdraw from all classes, and/or are dropped from all classes by their instructors, and/or receive all FW grades due to non-attendance.

To calculate the refund or repayment:

1. Take the calendar days completed in the payment period or period of enrollment divided by the total calendar days in the payment period or period of enrollment. Use this percentage if it is under 60 percent. If 60 percent or more, use 100 percent as Title IV funds earned.
2. Determine institutional charges for tuition, fees, etc.
3. Determine earned and unearned portions of Title IV aid disbursed (amount disbursed * percent earned = earned) and (amount disbursed-earned = unearned).
4. If Title IV aid earned is greater than the funds disbursed, a post withdrawal disbursement is due to the student.
5. If Title IV aid earned is less than the funds disbursed, this is the amount of Title IV aid which must be returned:
   1. By the school: institutional charges * unearned Title IV aid percentage; compare this to unearned Title IV aid disbursed, taking the lesser of the two.
   2. By the student: take unearned Title IV aid disbursed less the amount due by the school.

Refunds are made to the appropriate programs within 45 days of completing the refund/repayment calculation.

Unearned funds must be returned to the programs in this order:

Taft College may also charge you for any Title IV program funds the school was required to return.

Repayments

Taft College takes the following steps to contact students who owe repayments to any federal financial aid programs:

1. A letter of explanation/invoice is mailed to the student.
2. The debt is posted to the student’s account. The student will be unable to enroll in classes until the debt is cleared.

Repayments due by the student are made to the appropriate programs within 45 days of receipt of the student’s payment.

A student who owes a repayment to any Title IV programs is ineligible for further Title IV assistance until the full repayment has been made.