Students receiving federal financial aid have the responsibility to follow the college's withdrawal procedures as outlined in the student handbook.
The 1998 Reauthorization of the Higher Education Act requires the college calculate a return of federal funds if you withdraw from all classes (officially or unofficially) on or before the 60 percent attendance point of semester or term. If you stop attending all classes without officially withdrawing, you will also be subject to a fund return calculation at the end of the semester, which is based on the last documented date you attended classes as determined by instructors.
A pro rata schedule is used to determine the percentage of the semester you attended, based on your withdrawal date. The number of days counted includes all calendar days in the semester, excluding college breaks that exceed four days in length.
Here is how we calculate your percent of attendance:
number of days you attended / number of days in the semester
= percentage of semester you attended
The percentage of the semester attended is used to calculate how much of your aid package is considered unearned and must be returned. For example, if you attended four weeks of a 16-week semester, then you attended just 25 percent of the semester. The government says you earned 25 percent of the funds it gave you. Seventy-five percent of your federal aid package must be returned.
The unearned portion of federal aid funds received must be returned to the appropriate aid programs according to federal law. The order of return is Federal Unsubsidized Loan, Federal Subsidized Loan, Federal PLUS Loan, Federal Pell Grant, Federal Supplemental Educational Opportunity Grant and other Title IV programs.
If you withdraw before the disbursement of aid, you may still be eligible for a disbursement. Your records will be reviewed. If you are eligible for additional aid, you will be notified.
Capitol College is required to return the lesser of the unearned Title IV aid or the unearned institutional charges. You are responsible to return any difference owed if the unearned institutional charges are less than the unearned Title IV aid.
Unearned institutional charges are calculated by multiplying the percentage of the semester that was not attended times the student's tuition and fees. Per federal regulations, Capitol College is responsible for its return of funds first, followed by your return of funds.
You are responsible for returning:
Amount of unearned title IV aid minus the amount of aid the school returns, which equals the amount you return.
If you are required to return Title IV funds to a federal loan program, the loan may be repaid according to the existing terms of the loan program. If you are required to return grants, the law allows you to repay only 50 percent of the unearned grant money, rather than 100 percent of what's due. Examples of the federal Title IV return of funds calculation are available in the Financial Aid Office.
Capitol College is required to return its portion of unearned Title IV aid to the appropriate federal program within 30 days of the date of your withdrawal. You must return unearned grant aid to Capitol College within 45 days of the date you are notified in writing of the debt. Regulations require that Capitol College refer accounts to the U.S. Department of Education if you fail to pay Capitol College within 45 days of notification.
In this situation, you would be considered in overpayment status and would not be eligible for additional aid at any postsecondary institution participating in the Title IV aid programs until you have resolved the debt with the Department of Education. If you are reported as being in overpayment status, you should contact the department to make arrangements to repay the necessary funds.
If you withdraw after applying for Stafford Loan funds to pay tuition costs, you may have a portion of those funds returned to the lender to reduce your student loan debt.