The following example illustrates how the federal Return of Title IV Funds policy would affect a student who withdraws from classes at Owens Community College:
A student is attending Fall Semester full-time, which is 112 calendar days in length. Classes are scheduled for the entire semester. The student withdraws from classes on the 28th day of the semester.
The student's financial aid and charges are:
|Federal Pell grant||$2,775.00|
|Federal Direct Subsidized Stafford Loan||+2,750.00|
|Total Financial Aid awarded||$5,525.00|
|Tuition and fees (institutional charges)||($1,581.00)|
|Financial aid refund disbursed to student after tuition and fees are paid||
Student withdraws from classes on the 28th day of the semester, which is the Monday of the fifth week.
Funds are returned to loan programs first and then grant programs.
**The College would return $1,185.75 to the Federal Direct Subsidized Stafford Loan program, creating a balance on the student's Owens account. The student is responsible for paying their Owens balance of $1,185.75.
The student's portion to return is calculated as $2,958.00. The student's remaining loan for the semester is applied towards this amount first. Because the College returned $1,185.75, the student's loan for the semester has been reduced to $1,564.25, which the student repays to the U.S. Department of Education in accordance with the terms of the Master Promissory Note (by beginning payments six months after graduation or dropping below six credit hours.)
The remaining balance of $1,393.75 is from the Federal Pell Grant program. The actual amount which the student must return to the U.S. Department of Education for the grant programs is reduced by 50% of the original grant amount ($2775 x 50% = $1,387.50). The amount remaining after this Title IV grant protection is applied is $6.25. The student is not responsible for returning funds to the grant programs that are under $50.00. Therefore, the student in this example would not be required to return any funds to the Federal Pell Grant program.
Student portion to be returned
|Loan returned during repayment||- 1,564.25|
|Student still needs to return||$1,393.75|
|50% Title IV grant protection||- 1,387.50|
|Grant amount remaining||$ 6.25|
All information is subject to change based on changes to federal law, regulation, or College policy and procedure. If changes are made, students must abide by the new policy.