Withdrawals & Return of Funds
Students receiving financial aid who withdraw, stop attending, or receive all W, F's or I's may be required to return a portion of financial aid received. The Higher Education Act, as reauthorized and signed into law on October 7, 1998 established the Return of Title IV funds policy.
The revised Cloud County Community College policy reflects new regulations published 10/29/2010 that became law on 07/01/2011.
Federal financial aid funds are awarded with the expectation that students will complete the entire period of enrollment. Students "earn" a percentage of the funds they are disbursed with each day of class attendance. If a student withdraws or stops attending classes, whether any credits have been awarded for the term or not, a portion of the aid received is considered to be unearned and must be returned to the Title IV programs from which it was received.
The following offices have been designated to accept notification of official withdrawals
Concordia Campus ~ Advising Department
Geary County Campus ~ Student Services
Online and Outreach ~ Outreach Advising
For Title IV purposes, the date of last attendance or withdrawal date is one of the following:
- The date the official withdrawal slip is signed by the student and designated official office. This represents the date the student began CCCC’s withdrawal process.
- If the student requests the withdrawal process by phone and the withdrawal form is mailed to the student by the Advising Office, the date the form is received in the Student Records office will the official withdrawal date.
- The date the student otherwise provided official notification of their intent to withdraw.
- If the student did not officially withdraw, the midpoint of the payment period for which SFA Program assistance was disbursed or a later date documented by the student’s instructor(s).
- The date of documented attendance in an academically related activity (i.e. documented attendance in a class or lab).
If a student attends thru 60 percent of the term, all Title IV financial aid is considered earned. However, withdrawing from classes will affect a student’s satisfactory academic progress and eligibility for additional financial aid.
Calculation of the Amount of Federal Financial Aid Earned- The amount of federal financial aid earned is the percentage of federal financial aid that has been earned multiplied by the total amount of federal financial aid that was disbursed (or that could have been disbursed) for the payment period or period of enrollment as of the day the student withdrew.
The percentage and amount of “unearned” aid is the complement of the percentage of federal financial aid earned multiplied by the total amount of federal financial aid that was disbursed (or that could have been disbursed) to the student for the payment period or period of enrollment, as of the day the student withdrew.
The payment period or period of enrollment completed is the total number of calendar days in the payment period or period of enrollment for which financial aid is awarded divided into the number of calendar days completed in that period as of the day the student withdrew.
If the student received more federal financial aid than the amount earned, unearned funds must be returned in the order specified below.
Return of Unearned Federal Financial Aid Funds-
The school must return the lessor of:
- The amount of program funds that the student does not earn; or
- The amount of institutional costs that the student incurred for the payment period or period of enrollment multiplied by the percentage of funds that was earned.
The student (or parent, if a Federal Plus loan) must return the unearned funds for which they are responsible to loan programs in accordance with the terms of the loan, and to grant programs as an overpayment. Grant overpayments are subject to repayment arrangements satisfactory to the school, or overpayment collection procedures prescribed by the US Department of Education.
Order of Return of Federal Financial Aid Funds- The school will return unearned federal financial aid for which the school is responsible by repaying funds to the following sources, in order, up to the total received from each source until the total amount of the school’s responsibility has been satisfied:
- Unsubsidized Stafford loans
- Subsidized Stafford loans
- PLUS loans
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grants (FSEOG)
- Other Title IV assistance (not including FWS)
Procedures for Return of Title IV Refunds- A copy of the Complete Withdraw Check-Off form is sent to the Financial Aid office from the Student Records Office to determine that a student has made a complete withdrawal. A R2T4 form is completed for each student. The Director of Financial Aid calculates the Return of Title IV Funds.
The R2T4 form contains the following information:
- Social Security Number
- Withdraw Date
- Net Amount of Aid disbursed (or could have been disbursed)
- Institutional Charges
The financial obligations are given to the student in writing to inform them of whether they will receive funds or owe a repayment. Students are also informed of the amount of institutional costs returned to each Title IV program by the school. A hold is put on the student’s transcript by the Business Office for the reason “R2T4” until the overpayment to CCCC and to the Department of Education is satisfied.
At the end of each semester, attendance reports are reviewed for those students who have all F’s, I’s and/or W’s. R2T4 calculations are performed for these students within 30 days of the end of the semester.
All students have 45 days to satisfy overpayments to the Department of Education with payment made at Cloud County Community College. If the 45 days have elapsed and the student still owes the overpayment, it is reported to NSLDS. The amount of the overpayment is referred to ED/SFA Collections, and the student is notified in writing how to contact ED Collections for payment. The student will not be eligible for federal aid at any institution until the overpayment has been satisfied.
This policy is separate from Cloud County Community College’s institutional refund policy. Unpaid balances due to CCCC that are a result from amounts returned to Title IV Programs and other sources of aid will be charged back to the student account. The student is responsible for any student account balance and must make arrangement with the business office to pay their student account.
The Financial Aid Office has established processes for the return of Title IV funds in the required time limit. Reports have been established and are run every two weeks through-out the semester to determine when a student officially withdraws including unsuccessful completion of a semester. This report is cross checked with Student Records Official Withdrawal forms to determine that all students are identified. After the Financial Aid Office has completed the R2T4 calculation, the Business Office is notified and funds are returned. An excel spreadsheet has been established that both the Business Office and Financial Aid Office have access to and will be completed by both offices as funds are returned for each student.