TCC Home Page                               

TEXT ONLY

Welcome CenterAcademicsWorkforce SolutionsNew StudentsCurrent StudentsFaculty and StaffDonorsCommunity
rollover the links above to activate the sub menus
 
Bb, Email, SIS
myTCC myTCC Library Financial Aid TV
How to:

Financial Aid: Return of title iv funds

Statement to Explain Return of Title IV Funds

Link to Financial Aid TVThe Financial Aid Office is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of a payment period or term. The federal Title IV financial aid programs must be recalculated in these situations.

If a student leaves the institution prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula:

Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term. (Any break of five days or more is not counted as part of the days in the term.) This percentage is also the percentage of earned aid.

Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:

Aid to be returned = (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student would be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student borrower may owe a debit balance to the institution.

If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student's withdrawal.

The institution must return the amount of Title IV funds for which it is responsible no later than 30 days after the date of the determination of the date of the student's withdrawal.

Refunds are allocated in the following order:

 

Unsubsidized Federal Stafford Loans

Subsidized Federal Stafford Loans

Unsubsidized Direct Stafford Loans (other than PLUS loans)

Subsidized Direct Stafford Loans

Federal Perkins Loans

Federal Parent (PLUS) Loans

Direct PLUS Loans

Federal Pell Grants for which a Return of funds is required

Federal Supplemental Opportunity Grants for which a Return of funds is   required

Other assistance under this Title for which a Return of funds is required 

Print PDF statement
 Return of State Funds

The college is required to recalculate eligibility for students receiving funds from the Virginia Guaranteed Assistance Program (VGAP), Commonwealth Grant (COMA), and the Virginia Foster Care Tuition Grant if they withdraw from or leave the institution prior to completing 60% of the semester. This non-completion includes grades of W, F, or U, in all courses. The calculation of eligibility will follow the same procedure as described in the Return of Title IV (Federal) Funds Calculation. 

top