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Title IV


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Title IV Repayment

When a recipient of Title IV grants withdraws from an institution during a payment period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant that the student earned as of the student's withdrawal date. If the student was disbursed more than the amount earned, the student will be in repayment status.

If a student is determined to owe a repayment of Title IV funds, the student will receive a letter with instructions on returning Title IV funds. The student's account will be placed on hold. If the student does not repay the funding during the grace period, he/she will be reported to the Department of Education for collections. This will affect any future Title IV funding the student applies for.

A grade of "F" will be considered a withdrawal at 50% of the term when determining repayment status, unless a student can prove attendance at an academically related event after that date.

An incomplete grade is considered an F unless the student can prove attendance after the 60% mark.

OVERPAYMENT/RETURN TO TITLE IV

Overpayment

An Overpayment situation may occur for any of the following reasons:

• Student drops classes after being paid for originally enrolled units. For example, if student is enrolled in 12 units, and is paid for those units, then drops to 6 units, the student may be in overpayment for half of the funds received.
• A student received funds from more than one institution during the same period.
• A student falsely or incorrectly reports information that must be corrected and submitted to the Department of Education. These changes affect the Expected Family Contribution (EFC), which could reduce the student’s eligibility.
• Other situations may arise that cause a student to be in overpayment status.

Students will be listed on the National Student Loan Data System (NSLDS) as being in overpayment status. After the 45 day grace period, all students in overpayment will be sent to the Department of Education for collection.

Return to Title IV

The federal Student Aid Handbook states: "Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive."
Volume 5: 2-126

Financial Aid determines how much is to be returned to the Department of Education based on the student's "unearned" funds.

The R2T4 process will be performed once a month.

Students will be notified of R2T4 status and will have 45 days to make payment to Barstow Community College. Students will be listed on the National Student Loan Data System (NSLDS) as being in overpayment status. If students do not make payment within the grace period, they will be sent to the Department of Education for collection.

     
 
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