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2017-2018 College Catalog

Online Catalog

Federal Return of Title IV Funds Policy

Students receiving financial aid have the responsibility to follow the college’s withdrawal procedures as outlined in the Howard Community College catalog.

The Higher Education Act requires the college to calculate a Return of Title IV Funds on all federal financial aid students who withdraw (officially or unofficially) from all classes on or before the 60% attendance point in the semester. A schedule is used to determine the percentage of the semester the student attended based on the withdrawal date/last date of attendance.

The percentage of the semester the student attended is calculated as follows:

Number of days in attendance

Number of days in period of enrollment

The number of days counted includes all calendar days in the period of enrollment including weekends and holidays, but excludes college breaks of five or more days. Students who do not complete late-starting classes as scheduled within a semester may be considered withdrawn and the college may be required to perform a Return to Title IV Funds calculation.

The percentage of the period of enrollment the student attended is used to calculate the amount of the student’s earned versus unearned federal aid funds. The unearned portion of federal aid funds received must be returned to the appropriate aid program in accordance with the order of return as mandated by law. The order of return is: Federal Unsubsidized Direct Stafford Student Loan, Federal Subsidized Direct Stafford Student Loan, Federal Direct PLUS Loan, Federal Pell Grant, Iraq and Afghanistan Service Grant, Federal SEOG Grant, other Title IV aid.

The college is responsible for returning the lesser of unearned Title IV aid or unearned institutional charges. Unearned institutional charges are based on the percentage of the semester the student did not attend. The college is responsible for its return of funds first, followed by the student’s return of funds.

The student is responsible for returning:

 

Amount of unearned Title IV Aid 

 Less

Amount of aid school returns

 Equals

Amount Student Returns

The college must return its portion of unearned Title IV aid (loan and grant) to the appropriate federal program within 45 days from the student’s withdrawal date as determined by Financial Aid Services. If the amount the student returns includes a federal loan program, the student is responsible for repayment of the loan in accordance with the terms of the loan program. If the amount the student must return includes grant aid, that amount will be no more than 50% of the original grant award amount.

The student must return unearned federal grant aid to the college within 45 days from date of notification. Failure by the student to return or make arrangements to return unearned federal grant aid to the college within 45 days will result in the student being reported to the U.S. Department of Education (USDOE). The student will be considered in an overpayment status, and will not be eligible for additional aid at any post-secondary institution participating in Title IV Aid programs. Students who are reported to USDOE in an Overpayment Status should contact the USDOE to make payment arrangements to repay the necessary grant funds.

Students who stop attending Howard Community College may not receive further financial aid disbursements, may lose some or all of the aid that has already been disbursed to their account, may be responsible for repayment of unpaid charges, and may be considered in overpayment status with USDOE.

Students who stop attending all classes without officially withdrawing from the college will be subject to a Return of Title IV Funds calculation at the end of the semester, based on their last date of attendance as determined by faculty.