Grant Recalculation & Return to Title IV Policy
Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the financial aid is awarded.
Complete Withdrawal - Return to Title IV
When a student withdraws from all classes, the financial aid award amount for the student is affected. When a student receives a combination of F/Ws or all Fs, we must treat it as if the student dropped all classes.
If you do not officially withdraw from your classes and receive all F’s, NC’s, I’s and W’s and did not attend classes through 60% of the semester, you may be expected to repay all or a portion of your financial aid.
The financial aid office will perform a return of funds calculation to determine how much the institution and the student must return. If the institution is required to return funds on the student’s behalf, the student will be billed and a hold will be placed on the student’s account, which will prevent students from registering from classes and obtaining academic transcripts.
When a student withdraws after completing more than 60% of the term, the student will not owe any repayment to the institution or the Department of Education. The student has earned 100% of the financial aid received.
When a student withdraws and the return of Title IV funds calculation performed indicates that a student has not received all financial aid entitled to, it is called a post-withdrawal disbursement. Our office will notify you by email.
Partial Withdrawal - Grant Recalculation
If you receive a financial aid check based on six (6) or more units and then drop below six units to less than half-time prior to receiving your second check, you will be required to repay all or a major portion of your financial aid. For example, if your original Pell Grant for the semester was $2000 and you received your first disbursement of $1000 (50%), you would have to repay a significant amount if you dropped to less than half-time status.
In addition, if a student fails to begin attendance in all classes but receives financial aid, the entire amount must be returned. The student is considered a “no show”. The institution will return all federal funds disbursed to the student back to the Department of Education, and the student will be billed the amount returned.
If you dropped units, consider enrolling in short-term, mid-semester classes. If you are thinking about dropping classes, contact the financial aid office to see if and how it may affect your eligibility. The Counseling Department is available to assist you in developing or modifying your class schedule.
Important Information for Student Loan Borrowers
Withdrawing from all of your classes or dropping below 6 units will terminate your “in-school” status. Failure to re-enroll within the next six months will place your student loan in “repayment” status where you must begin making payments on your loan. Federal loans must be repaid regardless of whether you complete your college program or are able to find employment.