Return of Title IV Federal Financial Aid Funds

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The law specifies how Trinidad State Junior College must determine the amount of Title IV program assistance that you earn if you withdraw from school. Title IV programs covered by this law include: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loan, Direct Plus Loans, Federal Supplemental Educational Opportunity Grants and Federal Perkins Loans.

When a Title IV aid recipient completely withdraws from TSJC prior to the end of the term, a refund of the aid will be calculated. The calculation will be based on the number of days attended compared to the total number of days in the semester. Withdrawal after 60% of the term is not subject to the return calculation. Aid used for tuition, fees, books, and room/ board, will be refunded by both the student and the College.

The withdrawal date will need to be determined in order to calculate the amount to be returned. This will be the date the student began the withdrawal process with the Student Services Office, or otherwise provide the institution with notification of intent to withdraw. If the student drops without any notification, the midpoint of the term (50% aid returned) will be used as the withdrawal date or the student’s last date of attendance at a documented academically related activity. If the withdrawal process was not begun because of illness, accident, or similar circumstance beyond the student’s control the institution will determine the appropriate withdrawal date. If at the end of the semester the student receives all W’s, F’s or a combination, the actual last date of attendance will be used.

The College will return to the Title IV programs, the amount based on the standard calculation. That amount is now due to the College by the student. Additionally, the student will return any remaining unearned Title IV funds. (If the student needs to return funds to the Pell or SEOG programs based on the return priority, they need to return no more than 50% of the original amount). Students have 45 days to repay their portion. Shortly after 45 days have elapsed from the date the student was informed in writing of their repayment obligation, If the student has not repaid the overpayment in full, the College will report the overpayment to Enterprise Recovery System (ERS) for collection. The College will bill the student and it becomes the debt of the College. The student will remain eligible for Federal Title IV aid at any post-secondary institution. The loan amounts the student needs to return will be repaid according to the regular repayment schedule for the loan. The school refund to the loan will be credited to the original loan amount.

Example: Estimate of the amount of aid you may earn and the amount the student may have to return:
A student received a Pell Grant for $1563 for full time enrollment of 12.0 credit hours. Student charges for the term totaled $726.20. The student completed 30 calendar days of the 111 days of the term.

Original Pell Award $1,563.00
 
Student withdraws after attending 30 calendar days (30/111)  
Percentage of Title IV aid earned 27% Amount of Title IV aid earned $ 422.01
Pell award amount of Title IV aid unearned (Title IV aid to be returned) $ 1,140.99
Institutional Charges incurred by student $ 726.20
Percentage of Title IV aid unearned 73%
Institutional Charges unearned $ 530.13
Title IV Aid to be returned by student, computed as follows:
(Original award - institutional charges) = student amount x percentage unearned / 2 = total amount student must repay ($1563 - $726.20) x 73% = 610.86 /2 = $305.43 $305.43
Pell Funds to be returned to the Department of Education by the institution $ 530.13
Pell Funds to be returned to the Department of Education by the student $ 305.43

The order of return of Title IV funds will be as follows:

  • Unsubsidized Stafford Loans
  • Subsidized Stafford Loans
  • PLUS Loans
  • Federal Pell Grant
  • Federal SEOG

The fees, procedures, and policies listed above supersede those published previously and are subject to change at any time. Financial aid policies not listed here are available in the Financial Aid Office.

Consequences of Withdrawing
Federal funds may not cover all unpaid institutional charges due to the institution upon the student’s withdrawal. Therefore, you may still owe funds to the school to cover unpaid institutional charges. This includes Title IV program funds that the school was required to return on your behalf. Refer to Trinidad State Junior College’s Refund Policy at http://www.trinidadstate.edu/admissions/withdraw.html
You will not be able to register for future terms or obtain transcripts until the balance you owe Trinidad State Junior College is paid in full. Failure to pay the balance in full within 45 days may result in your account being referred to Enterprise Recovery System (ERS). In addition, you may be placed on an ineligible status for financial aid. Refer to Trinidad State Junior College’s Satisfactory Academic Progress Policy at https://www.cccs.edu/sp-4-20c-return-of-title-iv-funds/.

NSLDS Disclosure
Please note that any loan borrowed by the student or parent will be submitted to the National Student Loan Database System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.