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Return of Title IV Funds Policy
***PLEASE NOTE: The college refund policy and the Federal Return of Title IV Funds policy are independent of each other. Transcripts and/or grade reports will not be issued to students with unpaid balances.
If you received taxpayer supported financial aid authorized by Title IV legislation and administered by the Federal Department of Education, an official or unofficial withdrawal will affect your current financial aid, your future financial aid eligibility, and potentially your personal finances. Colby Community College strongly encourages students to read and understand the policies below prior to making a final decision about withdrawing from classes.
Federal financial aid is disbursed under the assumption payday loans without bank account in Lamar that the student will attend for the entire period of time for which the student was awarded the funds. When a student withdraws from all courses for any reason including medical withdrawals that student ount of financial aid funds that were awarded.
Federal law (34 CFR ) requires schools to calculate how much financial aid a student has earned if that student:
Federal law (34 CFR ) requires schools to calculate how much financial aid a student has earned if that student:
Title IV Funds Policy
- Completely and officially withdraws.
- Stops participating in classes before completing a semester; or
- Does not complete all modules the student was scheduled to attend (modules are classes that do not span an entire semester).
The federally required calculation is based on the idea that students earn financial aid in proportion to the amount of time in which they were enrolled. For example, a student who withdraws in the second week of class has earned less than someone who withdraws in the fifth week of class. Once a student has completed 60% of the enrollment period, the student is considered to have earned all of the financial aid they were awarded and will not have to return any funds.
Because of this calculation, Colby Community College students who receive disbursements of their financial aid and do not complete their classes during a semester or term could be held responsible for repaying a portion of the aid they received. Students who do not begin attendance must repay all financial aid that was disbursed for the term.
IMPORTANT: Courses processed as withdrawals (A “W” recorded on official transcript) remain fully billable at 100% of course tuition and applicable fees. Colby Community College’s tuition/fee cancellation policy is separate from the federal regulations on repayment of unearned aid. It is possible that financial aid will not cover a student’s balance following the return of funds calculation even after the tuition and fees cancellation policy has been applied.
Institutions are required to determine the amount of Title IV financial aid that was earned by a withdrawing student. This calculation must be completed within 30 days of the date the school determines that the student has withdrawn. The school is required to return any unearned funds within 45 days. The calculation is completed by the Office of Financial Aid. The following formula is used to determine the percentage of unearned financial aid that must be returned to the federal government:
In summary, if a student has completed 25% of the payment period in which they were enrolled, they are considered to have earned 25% of the financial aid they were originally scheduled to receive. That means that 75% of the disbursed aid is considered to be unearned and must be returned to the federal government. The total number of days used in the calculation will exclude any scheduled breaks of five or more days.
