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Return of Title IV (Federal Financial Aid) Funds Policy

What Are Title IV Funds?

Title IV funds are federal student financial aid programs authorized under the Higher Education Act. These programs may include:

• Federal Direct Subsidized Loans
• Federal Direct Unsubsidized Loans
• Federal Direct PLUS Loans (Parent PLUS)
• Federal Pell Grants
• Federal Supplemental Educational Opportunity Grants (FSEOG)

Note: Federal Work-Study is not subject to the Return of Title IV Funds calculation.

When Is a Return of Title IV Funds Calculation Required?

Federal regulations require ¿Û¿Û´«Ã½ to determine how much federal financial aid a student has earned if the student stops attending before completing the semester.

A Return of Title IV (R2T4) calculation may be required if a student:

• Officially withdraws from all courses;
• Stops attending without officially withdrawing (unofficial withdrawal);
• Is dismissed from the institution; or
• Fails to successfully complete at least one course during the semester.

For students enrolled in multiple parts of a term, a Return of Title IV Funds calculation is also required if the student ceases attendance before beginning a later part of the term unless the student provides written confirmation of future attendance in that later enrollment period.

How Financial Aid Is Earned

Federal financial aid is earned based on the number of calendar days a student attends during the payment period or term.

The percentage of aid earned is calculated using the following formula:

Days attended ÷ Total days in the semester = Percentage of aid earned

Scheduled breaks of five consecutive days or more are excluded from this calculation.

For example, if a student attends 32 days of an 80-day semester, the student has earned 40% of the federal financial aid awarded for that semester.

Students who complete more than 60% of the semester are considered to have earned 100% of their federal Title IV financial aid.

Unearned Financial Aid

If the amount of federal financial aid disbursed exceeds the amount earned, federal regulations require the unearned portion to be returned to the appropriate federal aid programs.

The responsibility for returning unearned funds may be shared by both ¿Û¿Û´«Ã½ and the student.

Any student who owes a balance after federal funds are returned is responsible for paying the remaining balance owed to ¿Û¿Û´«Ã½.

Order of Return

Federal regulations require returned Title IV funds to be applied in the following order:

1. Federal Direct Unsubsidized Loans
2. Federal Direct Subsidized Loans
3. Federal Direct PLUS Loans
4. Federal Pell Grants
5. Federal Supplemental Educational Opportunity Grants (FSEOG)

Post-Withdrawal Disbursements

If a student earned more financial aid than was disbursed before withdrawing, the student may be eligible for a post-withdrawal disbursement.

Grant funds will be applied first toward any outstanding institutional charges. If additional funds remain, the student (or parent borrower, in the case of a PLUS Loan) will be notified of eligibility and any required action to receive the remaining funds.

Withdrawal Dates

For students who officially withdraw, the withdrawal date is generally the latter of:

• The official withdrawal date; or
• The date the student notifies Student Services of the intent to withdraw.

Students wishing to officially withdraw should contact the Office of Student Services at 304-710-3370.

For students who stop attending without officially withdrawing, the withdrawal date is generally the student’s last documented date of academic attendance or participation. If a last date of attendance cannot be determined, federal regulations require ¿Û¿Û´«Ã½ to use the midpoint of the semester.

Students who receive all non-passing grades will be reviewed to determine whether they completed the semester or unofficially withdrew.

Institutional Refund Policy

The Return of Title IV Funds calculation is separate from ¿Û¿Û´«Ã½’s institutional tuition refund policy.

Receiving a tuition refund does not necessarily reduce the amount of federal financial aid that must be returned. Likewise, a student may owe a balance after federal financial aid has been returned.

Please refer to the ¿Û¿Û´«Ã½’s Tuition and Fees page for information regarding the institutional refund schedule.

Effect on Future Financial Aid

Withdrawing from courses may impact future financial aid eligibility.

Students who withdraw or fail to successfully complete coursework may:

• Fail to meet Satisfactory Academic Progress (SAP) requirements;
• Lose eligibility for future financial aid;
• Owe a balance to the College after aid is returned; and
• Have a registration hold placed on their student account until any outstanding balance is resolved.

Students are strongly encouraged to contact the Financial Aid Office before withdrawing from any courses to discuss the potential financial consequences.

State Financial Aid Programs

Although the federal Return of Title IV Funds calculation does not apply to Federal Work-Study, changes in enrollment may affect eligibility for state financial aid programs, including:

• West Virginia Higher Education Grant
• Promise Scholarship
• WV Invests

Students receiving state financial aid should contact the Financial Aid Office before withdrawing from any courses to understand how their eligibility may be affected.

Timeframe for Returning Funds

¿Û¿Û´«Ã½ Community and Technical College will return any required federal Title IV funds for which it is responsible within the timeframe established by federal regulations following the determination that a student has withdrawn.

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