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 complete a Return of Title IV Funds review for all federal financial aid recipients who withdraw (officially or unofficially) from all classes before completing the semester. Howard Community College offers three standard terms per academic year, also referred to as payment periods: fall, winter/spring, and summer.

The percentage of the payment period the student completed is used to calculate the amount of the student’s earned versus unearned federal aid funds. If a student completes more than 60% of the payment period, the student is eligible for 100% of their Title IV aid funds. If a student completes 60% or less of the payment period, the amount of aid they earned is proportional to the percentage of the payment period completed.

The completion percentage is calculated by dividing the number of days that the student completed by the total number of days they were scheduled to complete in the payment period.

The number of days counted includes all calendar days in the payment period (including weekends and holidays) but excludes scheduled college breaks of five or more consecutive days. For example, spring recess is excluded when determining how many days a student completed or was scheduled to complete in the winter/spring payment period. Students who do not complete courses that end prior to the last day of the payment period may be considered withdrawn and the college may be required to perform a Return of Title IV Funds calculation.

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: Unsubsidized Federal Direct Stafford loans, Subsidized Federal Direct Stafford loans, Federal Direct PLUS received on behalf of the student, Federal Pell Grants, Iraq and Afghanistan Service Grants, Federal SEOG Program aid, and TEACH Grants.

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:

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, a 50% grant protection allowance limits the total amount the student must return to all grant programs.

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.