Financial Aid Over-Payment and Return of Title IV Funds Policy

The following procedures are used to determine the amount to be returned to federal (Title IV) funds:

Overpayment

An overpayment situation occurs when students receive a Pell Grant and drop classes after funds have been disbursed. For example, if a student receives a Pell Grant based on full-time enrollment and then drops to nine credits, an overpayment will be calculated. Any refund will be credited back to the Pell Grant and the student will be required to pay back any difference between a full-time Pell Grant and a 3/4-time Pell Grant. These funds must be repaid prior to receiving aid for subsequent terms at SLCC or any other institution.

Return of Title IV Funds

Return of Title IV funds occurs when a student receives federal funds and then officially drops, withdraws or ceases attendance without notifying the school. The amount of unearned Title IV aid must be figured. This is determined by multiplying the percentage of term not attended (based on calendar days including weekends and holidays) by the Title IV aid received. All types of aid, including loans, are used in this calculation. College work-study funds which have been earned will not be included. If a student attended more than 60% of the term, no return of funds will be required.

After the amount of Title IV aid to be returned is calculated , a determination of how much must be returned by the institution and how much must be returned by the student will be determined. Any funds returned by the institution are credited in the order of loans, (Unsubsidized Stafford, Subsidized Stafford, Perkins, PLUS) Pell Grant, FSEOG Grant, and other Title IV aid. If the student has any loans (Perkins, Stafford, Plus) which have been used in the calculation, this obligation will be due and payable by the terms of the promissory note. Any grant funds to be returned by the student will be reduced by 50%. For example, if a calculation determines that a student's grant obligation is $300, the repayment will be $150.

Any return of Title IV funds required by the student must be paid prior to receiving additional financial aid at SLCC or any other institution. Any funds returned by the institution on the student's behalf must be repaid by the student to the College prior to receiving grades or attempting to register for the subsequent terms. A complete and detailed explanation of this policy, along with examples, is available at the Financial Aid Office.