Return of Title IV Funds
Return of Title IV Funds: Effective Fall Semester, 2011, Dawson Community College adopted a Return Policy that conforms to the updated version (Section 668.22) of the Higher Education Amendments of 1998. Students with Title IV funding who withdraw as determined by nonattendance or a student withdrawing from all courses via submission of a ‘Withdrawal From School” form (available in the Student Services Office) and signed by the Financial Aid Director after counseling the student as to the ramifications of withdrawing from school, is then submitted it to the Registrar’s Office. The student’s withdrawal is subject to both the Federal Refund Policy regarding the possible return of Title IV funds awarded to the student, as well as the Dawson Community College Return of Funds Policy. Only that amount of the semester’s aid that has been earned:
- The prorated amount of time the student has been in school for the semester: using school calendar- the total days student indicates participation in course first day of class to last visible participation will be eligible for retention on the student’s behalf on or before the 60% point in the semester: the date determined by last student’s participation date:
a. online class participation,
b. completion of assignments,
c. instructor input or
d. withdrawal form submission.
- Title IV and all other aid is viewed as 100% earned after that point in time, 60% of the semester in calendar days .
- Students who withdraw without attending any class owe a repayment of 100% of the aid they received.
- Any aid that is not earned must be returned back to its source. Both the institution and the student may have an obligation to return some or all of the unearned federal financial aid received for the semester not completed. When the institution is required to return Title IV federal financial aid funds to the US Department of Education within 45 days, the funds will be returned to its source in the following order: Federal Direct Unsubsidized Loan, Federal Direct Subsidized Loan, Federal Perkins Loan, Federal Direct Plus Loan for Parents, Federal Pell Grant, SEOG, Other Title IV Programs, Students/Parents. If there is a student account balance resulting from these adjustments, the student is responsible for payment.
- Students who withdraw before receiving all the funds that they could have earned might be eligible for a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, the college must get the student’s written permission within 14 days before the loan funds can be disbursed. A student can choose to decline some or all of the loan funds so further debt is not incurred.
- If the student is due federal grant funds, the college may automatically use all or a portion of the grant for tuition, fees, room and board charges (as contracted with the college). In addition, the student gives permission for the university to use post-withdrawal disbursement grant funds to pay for any charges incurred during the semester at the time he confirms attendance. If the student does not owe the college, the post-withdrawal disbursement funds will be disbursed to the student by check. No portion of a second or subsequent disbursement may be disbursed to students as a post-withdrawal disbursement.
- Student is required to return unearned Title IV funds.
a. Loans—according to terms of the loan.
b. Grants—within 45 days or earlier of the date school sent notice.
- Any questions concerning these policies should be directed to the Dawson Community College Financial Aid Office at 406.377.9410.