Return of Title IV Funds Policy for Students Receiving Federal
Financial AidThe Higher Education Amendments of 1998 and the
Higher Education Reconciliation Act of 2005 set forth regulations governing
the treatment of Title IV funds (Federal Pell Grant, SMART Grant, Academic
Competitiveness Grant (ACG), Federal Supplemental Education Opportunity
Grant (SEOG), Federal Subsidized Stafford Loan, Federal Unsubsidized
Stafford Loan, and Federal PLUS) when a student withdraws completely from an
institution.
When a student withdraws during a period of enrollment in which he/she
has begun attendance and has received federal Title IV financial aid, Dalton
State College is required to determine the amount of earned and unearned
Title IV aid. A student is eligible to retain the percentage of Title
IV aid disbursed or that could have been disbursed that is equal to the
percentage of the enrollment period completed by the student (calculated
daily). Scheduled breaks of five or more consecutive days are
excluded. The unearned Title IV aid must be returned to the
appropriate federal aid program(s). If the student has completed more
than 60% of the enrollment period, no Title IV aid needs to be returned.
The following steps are followed when determining the amount of Title IV
aid to be returned upon the student's withdrawal.
1. Determine institutional charges and the amount of Title IV (federal
aid) disbursed to the student for the semester. Institutional charges
include tuition, fees and bookstore charges.
2. Determine the percentage of the enrollment period completed by the
student. Divide the number of days attended by the number of days in
the enrollment period (excluding scheduled breaks of five or more
consecutive days). If the calculated percentage exceeds 60%, then the
student has earned all the Title IV aid for the enrollment period.
3. Calculate the amount of earned and unearned Title IV aid based on the
percentage of the enrollment period attended by the student.
4. Return of Title IV funds by the Institution and the student.
Dalton State College will return unearned Title IV aid up to an amount that
is equal to the total allowable institutional charges for the payment period
multiplied by the percentage of the Title IV aid that was unearned. If
the student received only federal Stafford Loans, no student repayment of
unearned federal aid will be required, as the terms and conditions of the
original loan repayment agreement will apply. Students with unearned
federal Pell Grant, SEOG, SMART Grant, or Academic Competitiveness Grant must repay the
portion of the original grant overpayment that is in excess of half of the
total Title IV grant funds received by the student. If this amount is
not repaid to the college within 45 days of notification, the overpayment
will be referred to the United States department of education for
collection, and the student will forfeit future eligibility for Title
IV or Georgia State financial aid. At this point, the student must
work with the Department of Education to resolve the overpayment.
5. Dalton State will return unearned Title IV funds to federal programs
in the following order:
Federal Unsubsidized Stafford Loan
Federal Subsidized Stafford Loan
Federal PLUS Loan
Federal Pell Grant
Academic Competitiveness Grant
National SMART Grant
Federal SEOG
For further information about the Return of Title IV policy, please
contact the Office of Student Financial Aid and Veteran Services at
706-272-4545.
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