Returns of Title IV Funds
Title IV recipients who partially withdraw from classes through the official withdrawal process on or after the first day of class may be eligible for a maintenance fee/tuition refund based on NSCC's refund policy. Title IV recipients are allowed to receive such refunds except in cases when they totally withdraw (officially or unofficially) from classes.
Effective with the Fall Semester of 2000, NSCC implemented a new policy and procedures related to Return of Title IV Funds as required by the Higher Education Amendments of 1998 (34 CFR Part 668.22). This new policy replaced our prior Refund/Repayment Policy. A copy of our new policy and procedure is available in the Financial Aid Office. It should be noted that this new policy is only applicable to Title IV recipients. The NSCC refund policy as stated in the college catalog is applicable to non-Title IV recipients.
In brief, if a Title IV recipient totally withdraws (officially or unofficially) from classes on or before the sixty percent point of the semester based on the calendar days within the semester, a calculation will be performed via our Return of Title IV Funds Policy and Procedure. The calculation will include a determination of the student's last date of attendance, required registration fees, the total amount of Title IV assistance received, the percentage of Title IV assistance earned, the amount of Title IV assistance earned, the percentage of Title IV assistance that was unearned, and the amount of Title IV assistance that was unearned. The following example is reflective of a student who totally withdrew at the 40% point of the semester.
| Institutional Charges |
$700 |
| Title IV aid for the Period |
$3,000 |
| *Amount of Title IV applied to account |
$700 |
| Amount of Title IV refunded to student |
$2,300 |
| Percentage Earned |
40% |
| Amount Earned |
$1,200 |
| Percentage Unearned |
60% |
| Amount Unearned |
$1,800 |
*It is assumed that Title IV assistance paid the student's account even when institutional charges were paid by cash or another non-Title IV source of assistance.
Using this scenario, the college would be required to refund $420 (60% of $700) back to Title IV programs, first to loans and then to grants (as applicable). The student would be required to repay $1,380 (60% of $2,300) back to Title IV programs. The following qualifiers to the amount the student must repay should be noted. If the amount owed by the student could be applied to the remainder owed to loans disbursed during the period, the student would not be required to make immediate repayment but would follow the normal repayment process related to the loans. If the amount owed by the student is greater than the remainder owed to loans disbursed during the period, the student would be required to make repayment to federal grant programs. However, as related to federal grants, the student is only required to make payment of 50% owed to the federal grant programs. If, in this example, the entire $3,000 of Title IV aid for the Period was through the Federal Pell Grant, the student would only be required to repay 50% of $1,380 ($690) to the Federal Pell Grant. Within 45 days of notice, the student must make full payment of the amount owed to federal grants. Otherwise, the college will report the overpayment to the Department of Education (ED) and the student will be required to make payment arrangements with ED before being eligible to receive future Title IV assistance at any school.
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