Return ofTitle IV Funds
If you withdraw from Trinidad State before completing a term, federal law requires the College to recalculate how much of your Title IV financial aid you actually earned. This page explains how that calculation works and what it means for you.
The 60% Rule
If you withdraw after completing 60% of the term, you are considered to have earned all of your Title IV aid — no return calculation applies.
Repayment Window
Students who owe money back generally have 45 days to repay before the balance is referred to Enterprise Recovery System (ERS) for collection.
Programs Covered
- Federal Pell Grants
- Iraq & Afghanistan Service Grants
- TEACH Grants
- Direct & Direct PLUS Loans
- FSEOG & Federal Perkins Loans
How the Calculation Works
When a Title IV aid recipient completely withdraws from Trinidad State prior to the end of the term, a refund of aid will be calculated. The calculation is based on the number of days you 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 and board will be refunded by both the student and the College.
Determining Your Withdrawal Date
Your withdrawal date is needed to calculate the amount that must be returned. This will be the date you began the withdrawal process with the Student Services Office, or otherwise provided the institution with notification of intent to withdraw.
If you drop without any notification, the midpoint of the term (50% aid returned) will be used as the withdrawal date, or your last date of attendance at a documented, academically related activity. If the withdrawal process was not begun because of illness, accident, or a similar circumstance beyond your control, the institution will determine the appropriate withdrawal date. If, at the end of the semester, you receive all W’s, F’s, or a combination, your 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 then becomes due to the College by the student. In addition, you may be required to return any remaining unearned Title IV funds — though for Pell or SEOG funds specifically, you will never be required to return more than 50% of the original amount. Loan amounts you need to return are repaid according to your loan’s regular repayment schedule; the school’s refund to the loan is credited to your original loan amount.
Example Calculation
A student received a Pell Grant of $1,563 for full-time enrollment (12.0 credit hours). Student charges for the term totaled $726.20. The student completed 30 of the term’s 111 calendar days.
| Item | Amount |
|---|---|
| Original Pell award | $1,563.00 |
| Percentage of Title IV aid earned (30 / 111 days) | 27% |
| Amount of Title IV aid earned | $422.01 |
| Amount of Title IV aid unearned (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 |
| Pell funds returned to the Department of Education by the institution | $530.13 |
| Pell funds returned to the Department of Education by the student | $305.43 |
Student repayment is computed as: (original award − institutional charges) × percentage unearned ÷ 2. In this example: ($1,563 − $726.20) × 73% = $610.86, divided by 2 = $305.43.
Post-Withdrawal Disbursements
The amount of a post-withdrawal disbursement is the difference between the amount of Title IV funds disbursed and the amount you earned.
- Second or subsequent Direct Loan disbursements to a student who did not graduate or successfully complete the loan period.
- Direct Loan disbursement to a first-time, first-year undergraduate who withdrew before completing the first 30 days of their program, at a College that is not exempt from the delayed delivery/disbursement requirement.
- Direct Loan or Federal Perkins Loan disbursement to a borrower who has not signed the loan’s promissory note.
- Disbursement of any Title IV funds to students for whom the College did not receive a valid Institutional Student Information Record (ISIR) or Student Aid Record (SAR) prior to withdrawal, or by the annual deadline published by the U.S. Department of Education in the Federal Register.
- Federal Pell Grant, FSEOG, or Perkins Loan disbursement for a subsequent payment period to a student who withdrew from a non-term credit-hour program before completing the previous, already-paid payment period.
- The notification must include the information necessary for the student or parent to make an informed decision on whether to accept the disbursement.
- The notice must be sent within 30 calendar days of the date the College determines the student withdrew.
- The notice must let the parent or student decide which funds, if any, they wish to accept or decline.
- The notice must also advise that if there is no response within 14 calendar days, the College is not required to make the post-withdrawal disbursement, and the funds will be returned to the Title IV programs.
- If the student or parent responds within 14 days, the College must disburse loan funds within 180 days and grant funds within 45 days. If authorization is received after the 14-day deadline, the College must notify the student or parent that the disbursement will not be made, and why.
Order of Return of Title IV Funds
When funds must be returned, they are returned in this order:
Deadlines & Your Responsibilities
45 Days
From the date the College determines a student withdrew, the College will return unearned funds for which it is responsible.
30 Days
From the date the College determines a student withdrew, the College will offer a post-withdrawal disbursement, if applicable.
45 Days
To repay a grant overpayment in full, or enter a repayment agreement with the College or U.S. Department of Education, before losing Title IV eligibility.
The letter sent to the student will state the dollar amount owed, the method and recipient for repayment, and the consequences of failing to repay. If the student repays the College directly, the Financial Aid Office is responsible for returning the unearned funds to the proper program.
Shortly after 45 days have elapsed from the date a student was informed in writing of a repayment obligation, if the overpayment has not been repaid in full:
- The College will report the overpayment to the National Student Loan Data System (NSLDS).
- The College will refer the overpayment to the U.S. Department of Education for collection. The referral must be on College letterhead.
- The College must report any satisfactory payment arrangements on NSLDS and correctly update the status code to reflect them.
The fees, procedures, and policies described on this page supersede those published previously and are subject to change at any time. Financial aid policies not listed here are available from the Financial Aid Office.
Consequences of Withdrawing
Federal funds may not cover all unpaid institutional charges due upon withdrawal — including Title IV funds the school was required to return on your behalf. This means you may still owe money to the College. See Trinidad State’s Refund Policy for details.
You will not be able to register for future terms or obtain transcripts until your balance is paid in full. Failure to pay within 45 days may result in your account being referred to Enterprise Recovery System (ERS), and you may be placed on an ineligible status for financial aid. See Trinidad State’s Satisfactory Academic Progress Policy for details.
Please note: any loan borrowed by a student or parent is submitted to the National Student Loan Data System (NSLDS), and is accessible by guaranty agencies, lenders, and schools that are authorized users of the data system.