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Refund Policy, Requirements for Withdrawal and Return of Title IV Financial Aid

Refund Policy, Requirements for Withdrawal and Return of Title IV Financial Aid

Federal Law about Repaying Money if you leave School

If you are receiving federal financial aid money, it is vitally important that you stay in school and complete the units for which you have been paid. If you withdraw from ALL UNITS before 60% of the semester is completed, the college is mandated by Federal Law to collect from you the Federal Financial Aid that you have received.

Here is how it works:

According to the day you withdraw, the financial aid office will calculate the part of the grant that you have earned.

Example: 

  • If you receive a $1000 grant, in term with 100 days, then drop out on the 26th day, you have actually earned 26% of your grant.
  • The financial aid office will multiply your grant money and figure out what you have earned and not earn $1000 grant x 26% – $260 earned; $1000 x 74% = 740 unearned.

If you are thinking of withdrawing or just leaving Please, think again!

Immediately see a counselor or advisor and discuss your academic or personal reasons for leaving. Perhaps you can stay but take fewer courses. There are support services like tutoring or personal support that will help you stay. Talk to your teacher; see what advice and help they can offer.

Don’t leave unless you must. But if you must, take care of business before you leave.

Begin the Withdrawal Process at the Admission’s Office.

Please work with the financial aid office. You can arrange for regular payments with the Federal Government without losing your student aid eligibility, so it’s important to take care of the details before you go. If you leave without taking care of this business and you owe money, the financial aid office will have to put a national Hold on your students aid eligibility.

This policy will have very serious consequences on those students who withdraw completely within the first 60% of a semester. This students will need to repay any funds before:

  1. He/She will be able to receive federal financial aid anywhere in the United States.
  2. If the students does not repay the money owed within 45 days after being billed by the college, the college is forced by law to refer the student to the United States Education Department for Collections.
  3. If the student drop ALL their classes before the 60% date, the college will also owe money to the Federal Government.
  4. The college has the right to hold student responsible for “institutional cost” and will place a hold on future registration, transcripts, grade reports and services until the full amount is paid.

Yes, you are reading this right. There will be two bills for dropping classes after receiving Federal Financial Aid before the 60% deadline.