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Title IV Repayment
- 2014-2015 Overpayment Policy
- 2014-2014 Return to Title IV (R2T4) Funds Policy
- Instructor Verification of Attendance (R2T4-earned all F, NC grades)
Treatment of Title IV Financial Aid When A Student Withdraws
This notice serves to disclose required student consumer information in regards to how withdrawals may affect your Title IV Financial Aid program funds. The Law specifies how Solano College must determine the amount of Title IV Financial Aid program funds that you earn if you withdraw from school. The Title IV Financial Aid program funds that are covered by this Law are; Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, and Federal Stafford Loans.
When you withdraw during your payment period or period of enrollment, the amount of Title IV Financial Aid Program funds that you have earned up to that point is determined by a specific formula. If you received less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by Solano College and/or you.
The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period of enrollment.
If you did not receive all of the funds that you earned, you may be due a post withdrawal disbursement. If the post-withdrawal disbursement includes student's loan funds, you may choose to decline the student loan funds so that you do not incur additional student loan debt. Solano College may automatically use all or a portion of your post-withdrawal disbursement (including student loan funds, if you accept them) for tuition and fees. For all other charges, the College needs your permission to use the post withdrawal disbursement. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow Solano College to apply the funds to your student account in order to reduce any debt that you may owe.
There is Title IV Financial Aid that you may be scheduled to receive that cannot be disbursed to you once you withdrawal because of other eligibility requirements. For example, if you are a first-time, first-year, undergraduate student and you have not completed the first 30 days of your program before you withdraw, and you will not earn any Direct Loan funds that you would have received had you remained enrolled past the 30th day. If you receive excess Title IV Financial Aid program funds that must be returned, Solano College must return a portion of the excess equal to the lesser of:
- Your institutional charges multiplied by the unearned percentage of your funds, or
- The entire amount of excess funds.
Solano College must return this amount even if it didn't keep this amount of your Title IV Financial Aid program funds.
If Solano College is not required to return all of the excess funds, you must return the remaining amount. Any student loan funds that you must return, you must repay in accordance with the terms of the promissory note. That is, you must make the scheduled payments to the lender or holder of the loan over a period of time. Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds which you received or were scheduled to receive. You must make arrangements with Solano College or with the Department of Education to return the unearned grant funds.
The requirements for Title IV Financial Aid program funds when you withdraw are separate from any refund policy that Solano College may have. Therefore, you may still owe funds to Solano College to cover unpaid institutional charges. Solano College may also charge you for any Title IV Financial Aid program funds that the College was required to return. There are guidelines that pertain both to the time frame for the return of Title IV Financial Aid program funds and for the order in which Title IV Financial Aid program funds must be returned.
The time frame for the return of Title IV Financial Aid program funds is based on the type of withdrawal made by the student as either an official or unofficial notification of withdrawal. With the case of an official notification of withdrawal made by the student, the date of the determination that the student has withdrawn is base on "The student's withdrawal date, or the date of notification, whichever is later." With the case of an unofficial withdrawal where there is no notification by the student, the date of the determination that the student has withdrawn is based on "The date that the College becomes aware that the student has ceased attendance." Solano College must return unearned funds for which it is responsible as soon as possible, but no later than 45 days from the determination of a student's withdrawal.
The College may always use as a student's withdrawal date, the student's last date of attendance at an academically related activity if the College documents that the activity is academically related and that the student attended the activity.
For a student who withdraws without providing notification to the College, the College must determine the withdrawal date no later than 30 days after the end of the earliest of the (1) payment period or period of enrollment (as appropriate), (2) academic year, or (3) educational program.
The order of the Return of Title IV Financial Aid by Solano College is the following:
- Federal Subsidized Stafford Loan
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants
If you have questions about your Title IV Financial Aid program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID or (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web at www.studentaid.ed.gov.
Examples, Questions and Answers
What happens to my awarded grant funds if I withdraw from all my classes?
- The amount of assistance you have earned is determined up to the point of withdrawal. For example, if you completed 30 percent of the semester, you earned 30 percent of the assistance you were originally scheduled to receive. If you received more assistance than you earned, you must repay the excess funds.
- The Financial Aid Office will calculate how much you owe, and inform you in writing of the amount.
- Note: If you withdraw from school after 60% of the semester is over, you may not need to pay back the financial assistance you received.
Do I need to notify the Financial Aid Office if I withdraw from school?
- Yes! Inform the Financial Aid Office immediately. Discuss your academic or personal reasons for leaving. Perhaps you can stay enrolled but take fewer courses, or use services (such as tutoring or personal support) that will help you stay enrolled.
- If you must withdraw, begin the withdrawal process at the Office of Admissions and Records, Student Services Building 400, Fairfield Main Campus.
- The Financial Aid Office will notify you of how much you will owe and how you will have to repay it.
- Note: If you leave without following proper procedures and you owe a R2T4 (Return to Title IV) funds, the Financial Aid Office may put an institutional hold on your future Solano registration and transcripts. Also, a NATIONAL HOLD will be placed on your future aid eligibility at any institution through NSLDS (National Student Loan Data System).
- After the NATIONAL HOLD is placed, you will be required to contact the Federal Government and arrange for re-payment. Your financial aid eligibility will be reinstated when you have arranged your repayment.
How does the Financial Aid Office calculate how much I owe back?
- The Financial Aid Office determines how much you owe back using a specific formula set by the Federal Government.
- EXAMPLE: Let's say you were awarded a $1000 Grant and there are 100 days in the term. If you drop out on the 26th day, then you earned 26% of your grant.
- The Financial Aid Office will calculate what you earned, and did not earn:
- You earned: $1000 Grant x 26%= $260
- You did not earn: $1000 x 74% = $740
- Solano College will owe some of the money back to the federal program. The Institutional college share will depend on the number of units you took:
- If you took 12 units at $18 each, your total enrollment fee is $216
- The College share will be: $216 x 74% (unearned) = $160
- You will owe Solano College $160
- You will have to pay back to the federal funding program the unearned amount minus the College share times 50%:
- Unearned amount minus the College share: $740 - $160 = $580
- The amount you have to pay back the federal program: $580 x 50% = $290
- You will have to repay $290 to the Department of Education. You may work with Solano College to return the funds through the college.
Do I still need to repay my loan if I withdraw from Solano College?
- Yes. If you receive loan money and withdraw from all of your classes, you will still need to pay back the money.
- Refer to the rules of the Direct Loan program. Federal Student Aid Direct Student Loan has all the information you need. You may also refer to the Entrance Counseling packet you received at the time you applied for the loan.
Can I keep my work-study job if I withdraw from the College?
- No. You must inform your employer and the Financial Aid Office, and stop working immediately.
- You will not have to return the money you earned while working under the federal work-study program. Any amount of money you received while enrolled at least half-time is all yours to keep.