Return to Title IV – Paying Back Unearned Financial Aid
When a student receives Financial Aid (Title IV Funds), either directly or by credit to their account, and they terminate their enrollment (withdraw or stop attending) prior to the end of the semester, the financial aid they received is subject to repayment. Repayment is calculated based upon the number of days a student actually attends classes compared to the total number of days in the term. Calculation of Return to Title IV funds is required for all students who receive Federal Title IV funds who withdraw, stop attending, or fail any classes attempted prior to completion of more than 60% of the term.
Example: A student received a Pell Grant for $2,007 for full-time enrollment of 12 credit hours. Student charges for the term totaled $2,004.96. Student completed 41 calendar days of the 107 days of the term.
Original Pell Award: $2,007.00
Student withdraws after attending 41 calendar days (41/107)
Percentage of Title IV aid earned: 38.3%
38.3% of $2007 (aid received) is: $768.68
Amount of Title IV aid earned was: $768.68
So, since the student only earned $768.68, we are required to send the rest of the aid back to the Department of Education. Calculation = Original Pell award minus Amount of Title IV aid unearned ($2007 - $768.68 = $1238.32)
Financial aid to be returned: $1,238.32
In this example, PPCC would pull back $1,238.32 of the Pell Grant the student had already received which would create a balance owed back to the school. The student would be required to pay the balance.
- Student must repay these funds
- Failure to repay requires the college to report the student to the U.S. Department of Education causing ineligibility of future Title IV funds at ANY educational institution.
- Students may not use future financial aid to repay this debt.
NOTE: It is important to note that students who completely withdraw or fail a semester will automatically be ineligible for further financial aid. If you are thinking about dropping or withdrawing from your classes after receiving financial aid in any semester, please discuss the possible ramifications with the Financial Aid Office.