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Federal Title IV financial aid recipients who completely withdraw from classes during any semester of attendance at NCTC are subject to a Return of Title IV aid recalculation. If a student drops before the 60% point of the semester they may owe all or part of their financial aid money back to the school and/or the U.S. Department of Education. Students who owe money back to NCTC or the U.S. Department of Education will not be allowed to re-enroll at NCTC until the funds have been repaid. Please contact the Office of Financial Aid for more information regarding this federal requirement.
Return of Title IV Financial Aid Policy
Return of Title IV, HEA
When a student applies for financial aid, he or she signs a statement that received funds will be used for educational purposes only. Therefore, if a student withdraws before completing their program, a portion of the funds received may have to be returned. NCTC will calculate the amount of aid that needs to be returned to the Title IV, HEA Federal fund programs according to the policies listed below.
Return of Title IV Funds Policy
This policy applies to students who withdraw officially, unofficially, fail to return from a leave of absence, or are dismissed from enrollment at NCTC. It is separate and distinct from the NCTC refund policy. (Refer to institutional refund policy)
The calculated amount of the Return of Title IV, HEA (R2T4) funds that are required for the students affected by this policy, are determined according to the following definitions and procedures as prescribed by regulations.
The amount of Title IV, HEA aid earned is based on the amount of time a student spent in academic attendance, and the total aid received; it has no relationship to student’s incurred institutional charges. Because these requirements deal only with Title IV, HEA funds, the order of return of unearned funds do not include funds from sources other than the Title IV, HEA programs.
Title IV, HEA funds are awarded to the student under the assumption that he/she will attend school for the entire period for which the aid is awarded. When a student withdraws, he/she may no longer be eligible for the full amount of Title IV, HEA funds that were originally scheduled to be received. Therefore, the amount of Federal funds earned must be redetermined. If the amount disbursed is greater than the amount earned, unearned funds must be returned.
Students who owe unearned Return to Title IV Funds to NCTC or a Title IV Overpayment to the U.S. Department of Education will not be able to re-enroll at NCTC or request an official transcript, until funds have been repaid.
Liability for the return of Federal Title IV Funds is determined according to the following guidelines:
- If a student remains enrolled and attends class beyond the 60% mark of the semester in which aid was received, all federal aid is considered earned and not subject to this policy.
- If a student completely withdraws from all classes prior to completing 60% of the semester, based on the amount of time the student attended, a prorated portion of the federal aid received must be returned to the federal student aid programs.
- If the student does not officially withdraw from classes but quits attending all classes, a prorated portion of the federal aid received, based on the documented last date of attendance, must be returned to the federal student aid program. If the College is unable to document the last date of attendance, the school will assume the student only attended to the 50% mark of the semester and this date will be used to determine how much unearned aid must be returned.
Return of Federal Title IV funds is distributed according to statutory regulations.
The institution has 45 days from the date that the institution determines that the student withdrew to return all unearned funds for which it is responsible. The school is required to notify the student if they owe a repayment via written notice.
Students who owe a Title IV Overpayment will be notified and allowed 45 days from the date of determination to return their share to the program accounts. If the student does not return the amount owed within 45 days, the amount of Title IV Overpayment will be reported to the U.S.Department of Education (DOE) via the National Student Loan Database (NSLDS) system and the student will be referred to the DOE for resolution of the debt.
Post Withdrawal Title IV Disbursements
The school must advise the student or parent that they have 14 calendar days from the date that the school sent the notification to accept a post withdrawal disbursement. If a response is not received from the student or parent within the allowed time frame or the student declines the funds, the school will return any earned funds that the school is holding to the Title IV, HEA programs. Post-withdrawal disbursements will occur within 90 days of the date that the student withdrew.
Official Withdrawal from the School
A student is considered to be “Officially” withdrawn on the date the student notifies the Financial Aid Office or Admissions/Registrar’s Office in writing of their intent to withdraw. The date of the termination for return and refund purposes will be the earliest of the following for official withdrawal:
- Date student provided official notification of intent to withdraw, in writing or orally.
- The date the student began the withdrawal from NCTC records. A student is allowed to rescind his notification in writing and continue the program. If the student subsequently drops, the student’s withdrawal date is the original date of notification of intent to withdraw.
Unofficial Withdrawal from School
In the event that the school unofficially withdraws a student from school, a school Administrator, Faculty, and/or Director of Admissions will complete the Withdrawal Form using the last date of attendance as the drop date. Any student that does not provide official notification of his or her intent to withdraw will be considered unofficially withdrawn.
In the event a student decides to rescind his or her official notification to withdraw, the student must provide a signed and dated written statement that he/she is continuing his or her program of study, and intends to complete the payment period. Title IV, HEA assistance will continue as originally planned. If the student subsequently fails to attend or ceases attendance without completing the payment period, the student’s withdrawal date is the original date of notification of intent to withdraw.
Institution Responsibilities
North Central Texas College’s responsibilities in regards to Title IV, HEA funds follow:
- Providing students with the information in this policy.
- Identifying students who are affected by this policy and completing the return of Title IV funds calculation for those students;
- Returning any Title IV, HEA funds due to the correct Title IV programs.
- The institution is not always required to return all of the excess funds; there are situations once the R2T4 calculations have been completed in which the student must return the unearned aid.
Student Responsibilities in regards to Return of Title IV, HEA funds
Returning to the Title IV, HEA programs any funds that were dispersed to the student in which the student was determined to be ineligible for via the R2T4 calculation.
Any notification of withdrawal should be in writing and addressed to the appropriate institutional official.
A student may rescind his or her notification of intent to withdraw. Submissions of intent to rescind a withdrawal notice must be filed in writing to the official records/ registration personnel at the institution.
*To request a copy of the North Central Texas College Return of Title IV Policy by contacting the Financial Aid Office. This policy is subject to change at any time, and without prior notice.
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