Return of Title IV Funds Policy
Financial Consequences of Withdrawing or Not Passing Classes
Federal regulations assume that students “earn” federal financial aid in direct proportion to the percentage of the term they complete. Federal law requires schools to calculate how much federal financial aid a student has earned if that student:
• Completely withdrawals, or
• Stops attending before completing the semester, or
• Does not complete all modules (classes which are not scheduled for the entire term) for which he/she has registered at the time those modules began, or
• Receives all F’s and W’s (or a combination of both) for all classes in any semester
Based on this calculation, Fox Valley Technical College students who receive federal financial aid and do not complete all their scheduled classes during a semester could be responsible to repay a portion of the aid they received.
How is the financial aid that I earn calculated?
Students who receive federal financial aid must “earn” the aid they receive by staying enrolled in college. The amount of federal financial aid the student earns is determined on a pro-rated basis. Students who withdraw or do not complete all registered classes during the semester may be required to return some of the financial aid they were awarded.
For example, if you complete 30 percent of the payment period (the payment period for many students is the entire semester), you earn 30 percent of the aid you originally were scheduled to receive. This means that 70 percent of your scheduled awards remain unearned and must be returned to the federal government. Once you have completed more than 60 percent of the payment period, you earn all of your federal financial aid.
The following formula is used to determine the percent of unearned aid that has to be returned to the federal government:
The percent earned is equal to the number of calendar days completed up to the withdrawal date, divided by the total calendar days in the payment period (minus any scheduled breaks that are at least 5 days long).
The payment period for many students is the entire semester. However, for students enrolled in modules (classes which are not scheduled for the entire semester), the payment period only includes those days for the module (s) in which the student is registered.
The percent unearned is equal to 100 percent minus the percent earned.
Withdrawals from all classes before aid disburses will cancel all financial aid. One hundred percent withdrawals, class cancellations, not attending and complete withdrawals may require adjustments and repayments of federal financial aid funds.
What is the withdrawal date?
The withdrawal date used in the return calculation of a student’s federal financial aid is the actual date the student drops or the last date of an academically related activity as determined by the instructor. If a student stops attending classes without notifying the College, the withdrawal date will be the midpoint of the semester or the last date of attendance in class.
How are the unearned federal funds returned?
The College is responsible for returning unearned federal financial aid to the federal government. Amounts that must be returned will be applied in the following order:
• Federal Direct Unsubsidized Stafford Loan, Federal Direct Subsidized Stafford Loan, Federal Direct Parent PLUS Loan, Federal Pell Grant, Federal Supplemental Education Opportunity Grant
The College must return the lesser of 1) the total amount of unearned aid or 2) institutional charges multiplied by the unearned percentage.
The College will bill the student for any funds that were returned due to the Return of Federal Aid calculation. The student must contact the Student Finance Office to make payment arrangements.
What happens if I don’t repay?
If a student does not pay funds due to the College that resulted after the college returned their unearned portion of the federal funds, the student’s record will be placed on financial hold. This means you will not be permitted to register for classes or receive transcripts until your balance is paid in full.