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Return Of Title IV Funds

FINANCIAL AID IMPACTS OF CLASS WITHDRAWALS

Return of Title IV Funds. The Higher Education Amendments of 1998 Public Law 105-244 dictates the formula for calculating the amount of aid a student and school may retain when the student totally withdraws from all classes. If students withdraw up through the 60% point in each payment period or period of enrollment, the school must determine the amount of Title IV funds the student has earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds.

The college encourages students to read this procedure carefully. If the student is thinking about withdrawing from all classes PRIOR to completing 60% of the semester, he/she should contact Financial Aid to understand how withdrawing will affect financial aid.

This procedure shall apply to all students who withdraw from State Technical College of Missouri and receive financial aid from Title IV funds:

a. The term “Title IV Funds” refers to the federal financial aid programs authorized under the Higher Education Act of 1965 (as amended) and includes the following programs:
1. Unsubsidized Direct Stafford Loan
2. Subsidized Direct Stafford Loan
3. Direct PLUS Loans
4. Federal Pell Grants
5. Federal SEOG
6. TEACH Grant
7. Iraq and Afghanistan Service Grant

b. A student’s withdrawal date is the student’s last date of attendance at a documented, academically related activity. Attendance information is collected from faculty to verify financial aid eligibility. If the student is not attending classes, he/she is required to complete the official withdrawal process of the college. Students who do not attend classes for two weeks and do not officially complete the withdrawal process, will be administratively withdrawn. The student’s last date of attendance will be used for administrative withdrawals.

Title IV aid is earned in a prorated manner on a per diem basis up to and including the 60% point in the semester. Title IV aid is viewed as 100% earned after that point in time.

a. The percentage of Title IV aid earned shall be calculated as follows: Number of days completed by student + total number of days in the tem (not counting breaks that include at least five consecutive days) the percentage of aid earned. For clock hour programs the percentage of Title IV aid earned is calculated by the number of clock hours scheduled to be completed + total number of clock hours in the term (not counting breaks that include at least five consecutive days).

b. The percentage of Title IV aid unearned shall be 100% minus the percentage earned.

c. Unearned aid shall be returned first by State Technical College of Missouri from the student’s account calculated as follows: Total institutional charges times the percentage of unearned aid equals the amount to be returned to the program(s). Unearned Title IV aid shall be returned in the following order:
1. Unsubsidized Direct Stafford Loan
2. Subsidized Direct Stafford Loan
3. Direct PLUS Loans
4. Federal Pell Grants
5. Federal SEOG
6. TEACH Grant
7. Iraq and Afghanistan Service Grant
8. Other assistance under Title IV for which a return of funds is required.

d. When the total amount of unearned aid is greater than the amount returned by State Technical College of Missouri from the student’s account, the student is responsible for returning unearned aid to the appropriate program(s) as follows:
1. Unsubsidized Direct Stafford Loan *
2. Subsidized Direct Stafford Loan *
3. Direct PLUS Loans
4. Federal Pell Grant **
5. Federal SEOG **
6. Other Title IV Grant Students **
* Loan amount is to be repaid in accordance with the terms of the promissory note.
** Amounts to be returned by the student to federal grant programs will be 50% of the amount owed.

Note: State Technical College of Missouri will return any grant money owed by the student to the grantor. The student will be responsible for reimbursing any grant money to the college that is returned on his/her behalf.

Unearned aid must be returned by State Technical College of Missouri as soon as possible, but no later than 45 days after State Technical College of Missouri has determined that the student withdrew.

If a student has not received all of the financial aid they have earned at the time of withdrawal, the student may be due a post-withdrawal disbursement. If a post-withdrawal disbursement includes a student loan(s), State Technical College of Missouri must obtain the borrower’s permission before the loan can be disbursed. Students may choose to decline or reduce loan funds.

Refunds and adjusted bills will be sent to the student’s accounts receivable address following withdrawal. The student is responsible for any portion of his/her institutional charges that are left outstanding after Title IV (Financial Aid) funds are retuned. A student with a past due balance will have a business hold placed on his/her records. If payment is not made, the student’s account may be turned over to a collection agency, which may affect his/her credit rating.

Refunds on all institutional charges, including tuition and fees, will be calculated using the refund policy published in this catalog.

Institutional and student responsibilities in regard to the return of Title IV funds.

a. State Technical College of Missouri’s responsibilities in regard to the return of Title IV funds include:
– Providing each student with the information given in this policy.

– Identifying students who are affected by this procedure and completing the Return of the Title IV Funds calculation for those students.

– Returning any Title IV funds that are due to the Title IV programs within 45 days of the withdrawal.

– Determining the withdrawal dates for students who withdraw without notification. If a student does not officially withdraw and fails to earn a passing grade in at least one class, for financial aid purposes, State Technical College of Missouri will assume the student has unofficially withdrawn. The student’s last date of attendance will be used for the return calculation.

– Notifying students of the result of withdrawal in regard to their financial aid.

b. The student’s responsibilities in regard to the return of the Title IV funds include:
– Becoming familiar with the Return of Title IV funds procedure. Understanding the college’s official withdrawal process.

– Repaying to the Title IV programs any funds that were disbursed directly to the student and which the student was determined to be ineligible based on the Return of Title IV Funds calculation.

State Technical College of Missouri will notify the student of the amount of any federal grant overpayment. The student must repay the amount in full to State Technical College of Missouri. The college will then repay the U.S. Department of Education. The student must complete these arrangements within 45 days of notification of the overpayment status or risk losing eligibility for future Title IV assistance.

 

LINE OF AUTHORITY

Responsible administrator or office: Student Affairs

Contact person in that office: Vice President of Student Affairs

EFFECTIVE DATE: August 16, 2023

Approved by President: August 16, 2023

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