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Return of Title IV Aid

If you drop or withdraw, either officially or unofficially, and you have received or were eligible to receive Title IV federal funds in the form of a Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal Direct Loan, or a Federal PLUS Loan, the federal government requires that we review your eligibility for those funds. We are required to apply a federally mandated formula to determine how much of the federal funding was “earned” up to the time of drop/withdrawal. This review and recalculation is called a “Return of Title IV Aid.”

A student is considered to have withdrawn when they do not complete all days scheduled to complete in a term.  Students enrolled in classes that do not span the entire term are considered withdrawn if, at the time of withdrawal, the student is not actively attending another class and did not provide confirmation of future attendance in the term.  Only classes that are eligible for federal financial aid are considered in the Return of Title IV review.

The Title IV funds that were disbursed in excess of the earned amount must be returned to the federal government.  This amount will be calculated from the date you officially dropped/withdrew from classes or, in the case of an unofficial withdrawal, the latest midterm date. An unofficial withdrawal is when a student stops attending classes, but does not withdraw from those classes and is assigned a grade of WS (Withdrawal, Stopped Attending) or WF (Withdrawal, stopped attending and failing. The WF grade counts in the GPA.) by the instructor. Get more information on CLC's Student Records Policies.

If you previously received a refund from financial aid, which was to be used for education-related personal or housing expenses, you may be required to return a portion of those funds to the college. When the college returns your unearned funds to the government, you will be billed for any balance due for any unearned refunds you received or institutional charges that are now unpaid as a result of the return. If you established a Deferred Payment Plan during registration, payments will be deducted from the account information you provided. If it is determined that you are eligible for a post-withdrawal disbursement of Pell or FSEOG funds, the award will be disbursed to your account.  Within 14 days of disbursement, CLC will pay any Title IV credit balance due to the student, less any authorized charges.

How the percentage of Title IV funds earned is calculated:

To determine the amount of aid you earned up to the time of withdrawal, CLC’s Office of Financial Aid will calculate the ratio of the days that you did attend to the days you were scheduled to attend in the term. The resulting percentage is then used, along with your institutional costs and total federal funds that you received (funds that were disbursed directly to your student account and possibly refunded to you) or that you were eligible to receive, to determine the amount of aid that you are allowed to keep.  Once a student completes 60% or more of the period scheduled to attend, he has earned 100% of his Title IV aid.

For example, if you were scheduled to attend 112 calendar days and withdrew on the 28th calendar day, you would have earned 25% of the Title IV funds awarded.

Returned Title IV Aid Allocation

Funds that are returned to the federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned by you and/or your parent or the college must be allocated in the following order:

  1. Federal Unsubsidized Direct Loan
  2. Federal Subsidized Direct Loan
  3. Federal Direct Parent Loan (PLUS)
  4. Federal Pell Grant
  5. Federal Supplemental Educational Opportunity Grant (SEOG)