South Louisiana Community College returns unearned funds received from Federal student assistance programs to the proper program accounts or lenders in accordance with Federal Title IV student assistance regulations under 34 CFR, section 668.22(a), the Higher Education Act of 1965 as amended, and in accordance with procedures of the Louisiana Community and Technical College System. The Return of Title IV policy differs from the refund policy of the South Louisiana Community College, which may be accessed under the tuition refund section of this catalog. http://solacc.edu/admissions/financial-aid/fsa-policies
The student receiving assistance from Federal Title IV programs is required to complete a minimum number of hours for which aid was received. Although the aid is posted to the account at the beginning of each payment period, the funds are earned as the payment period is completed If the student completely withdraws from school during the payment period, withdraws from all classes which are eligible for Title IV aid but remains in classes which are not paid by Title IV aid, or quits attending, but fails to officially withdraw, the student may be required to return the unearned part of the funds which were received to help pay educational expenses for the payment period. Liability for return of Federal Title IV funds will be determined according to the following guidelines:
- If the student remains enrolled and attends class for more than 60% of the payment period in which aid is received, all federal aid is considered earned and not subject to this policy.
- If the student completely withdraws from all Title IV eligible classes before completing more than 60% of the semester, a pro-rated portion of the federal aid received must be returned to the federal aid programs equal to the percentage of the semester remaining.
- If all eligible aid was not already disbursed to the student before the student withdrew, the earned portion of aid will be paid to the student as a post-withdrawal disbursement within 30 days of the Date of Determination that the student has withdrawn.
- If the student does not officially withdraw from classes, and stops attending all classes, a pro-rated portion of the federal aid received, based on the documented last date of attendance, must be returned to the federal aid programs. If the college is unable to document the last date of attendance, one-half of all federal aid received during the semester must be returned to the federal aid programs.
- If a student withdraws from all classes prior to disbursement of funds, a post withdrawal calculation will be conducted to determine the actual amount of earned funds. In some instances, students will be asked to provide confirmation to accept some or part of the earned funds.
Return of Federal Title IV (R2T4) funds will be distributed according to statutory regulations with 45 days of the Date of Determination on the R2T4 worksheet. The funds will be returned to the appropriate federal programs in the order mandated by the regulation in section 34 CFR 668.22(i). The current order of distribution occurs with money returned to Unsubsidized Federal Direct Stafford loans, Subsidized Federal Direct Stafford loans, Federal Pell Grants, and Iraq and Afghanistan Service Grants. The amount of aid earned is determined by a specific formula on a pro-rata basis. For example, if the student has completed 40% of the period of enrollment before withdrawal then the student would have earned 40% of the aid that the student was originally scheduled to receive.
Under this policy, the student and school each may have some responsibility to return funds to the U.S. Department of Education. Usually all charges for tuition and fees for classes which are Title IV eligible are used to determine the schools portion to be returned. Charges for library fines, lab breakages, tuition for non-Title IV eligible classes and other non-educationally related charges are not included in the determination. The student will remain responsible for payment of those fines and non-educationally related charges.
If a student's share of the return amount is greater than $50, the student will be notified and allowed 45 days from that date of that notification to return the funds to the business office of the college for deposit into the federal programs accounts. If the student does not return the amount owed within the 45 day period, the amount of overpayment will be reported to the U.S. Department of Education (USDE) via the National Student Loan Database (NSLDS) and the student will be referred to the USDE for resolution of the debt.
Click the following link for the process and instructions to withdraw http://solacc.edu/admissions/financial-aid/fsa-policies