Return of Title IV Funds Policy

Return of Funds Policy

Title IV Funds (federal student aid programs) are intended to help students access higher education opportunities at Alamance Community College (ACC). Students must adhere to federal, state and college regulatory policies. Federal regulations indicate that students can earn financial aid over the course of an academic term by attending classes.

The Federal regulation requires that students who withdraw from all courses may only keep the federal financial aid they have “earned” up to the time of withdrawal. If a student received any financial aid under federal Title IV programs (Pell Grant, FSEOG), a portion of these funds may need to be returned under the guidance of the federal formula, except the Federal Work Study Program.

 

Withdrawal Dates

The date of withdrawal is determined as follows:

Official Withdrawal

• The student began the official withdrawal process by either notifying
  the instructor(s) or the Registrar’s Office; or
• The student otherwise provided ACC with official notification of the
  intent to withdraw
• The date of withdrawal is the last date of documented and submitted
  academic assignments for (online courses) or physical attendance for
  (seated courses)

Unofficial Withdrawal

If a student does not begin the school’s official withdrawal process or notify the school of the intent to withdraw, the student's last date of documented academic attendance will be used as the date of withdrawal as part of an administrative withdrawal process. According to ACC’s attendance policy, a student who fails to attend two consecutive weeks of class is in violation of the college’s attendance policy and will be dropped or withdrawn from the course.

Percent of Title IV Aid Earned

Federal funds shall be returned in accordance with federal policies at the time of withdrawal. The percentage of the period of enrollment or payment period for which federal aid was awarded is determined by dividing the total number of  calendar  days  within  the  period  of enrollment or payment period (excluding scheduled breaks of 5 days or more) into the number of calendar days completed as of the day the student withdrew.

Once a student completes 60% of the payment period or period of enrollment, a student is considered to have earned all their financial aid and will not be required to return any funds.

However, recipients of financial aid who withdraw within 60% of the start of their semester will be required to return all or a portion of Title IV or state funds awarded based on a R2T4 calculation. Alamance Community College must return any unearned Title IV funds and is responsible for returning funds within 45 days of the date the school determined the student withdrew.

If the calculation indicates that funds should be returned, a specific order of refund has been established by the federal government (as applicable):

• Federal Pell Grant
• Federal Supplemental Educational Opportunity Grant (SEOG)
• Other Title IV assistance (as applicable)

ACC must return the amount of Title IV funds, for which it is responsible, as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew..

 Post-Withdrawal Disbursement 

ACC  will automatically use all or a portion of the post-withdrawal
disbursement of grant (Pell Grant and/or SEOG) funds for tuition and fees. ACC needs the student’s permission to use the post-withdrawal grant disbursement for all other school charges. If the student does not give their permission, the student will be offered the funds. However, it may be in the student’s best interest to allow the school to keep the funds to reduce any debt at the school. For any grant funds owed; a student, the school must make the disbursement as soon as possible, but no later than 45 days after the date of the institution's determination that the student withdrew.

If a student receives excess Title IV program funds that must be returned based upon the calculation described above, ACC must return a portion of the excess equal to the lesser of:

• The  student’s  institutional  charges  multiplied  by  the  unearned percentage of their funds, or
• The entire amount of excess

Excess Funds

ACC must return this amount even if it did not keep this amount of the student’s Title IV program funds. If ACC is not required to return all the excess funds, the student must return the remaining amount.

Any amount of unearned grant funds that the student must return is called an overpayment. A student does not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. The student must make arrangements with ACC or the Department of Education to return the unearned grant funds.

Overpayment Due to Non-Attendance (No Shows)

In the case in which a student registers and is paid from Title IV funds according to credit hours and fails to attend a class or classes, an overpayment has occurred. If the non-attendance and subsequent instructor drop places the student in a different credit hour category (Full to three quarter to half time to less than half time) there will be consequences.

The overpayment will be the difference between the enrollment status used to disburse Title IV funds and the student’s enrollment status after the instructor drop. The student will be notified by the Financial aid office of the overpayment and their responsibility to repay the program. No further Title IV funds will be disbursed to the student until this responsibility has been satisfied.

The requirements for Title IV program funds when a student withdraws are separate from any refund policy that ACC may have. Therefore, a student may still owe funds to the school to cover unpaid institutional charges. ACC may also charge a student for any Title IV program funds that the school was required to return.

Overpayment Due to Partial Student Withdrawals/Drops-Recalculations

In the event a student decreases their enrollment before the 10% point (freeze date) of the student's semester, they will incur a recalculation overpayment. The student will be notified by the Financial Aid Office of the overpayment and their responsibility to repay the program. No further Title IV or state funds will be disbursed to the student until this responsibility has been satisfied.

R2T4 Calculations for Students with Modules

Starting May 19 th 2021 , students with 1 or more modules (classes that do not expand through the entire term) will be determined if an R2T4 is required. If a student has earned credit for more than 49% of the entire term there will not be an R2T4 calculation. If a student did not earn credit for at least 49% of the term an R2T4 calculation will be made. All modules that the student enrolled in by the freeze date will be included in the calculation.

Withdrawal Exemption for Completers

A student who completes all requirements needed for graduation from his or her program before completing the days or hours in the period that he or she was scheduled to complete will not be considered withdrawn.

Information is also available on the Student Aid website at www.studentaid.gov .