Return Title IV Funds/Withdrawal
Withdrawing from School/R2T4
Return Title IV Funds
According to federal regulations, our Financial Aid Office is required to recalculate a student's eligibility for federal financial aid funds when the student receives all failing grades (grades of E, F, W, and/or I) during the semester. This may happen when a student unofficially or officially withdraws or is unsuccessful in all his/her classes. A portion of the total amount of Federal Title IV aid disbursed to the student must be returned to the U.S. Department of Education.
As a student, if you are unsuccessful in your course(s) or withdraw, the Financial Aid Office will calculate the percentage of aid that must be returned. The college will notify you of the earned and unearned aid. The unearned aid will be returned to the U.S. Department of Education by the college. You will have 45 days in which to repay the college for the returned aid. After the 45 day period should a remaining balance remain on your account, collection procedures will begin. After 90 days all delinquent accounts will be referred to the Kentucky Department of Revenue for collection which will have added costs. Please contact the Business Office for payment options.
Per federal regulations, if you receive all failing grades (grades of E, F, W, or I) for your semester classes, you will be subject to the Return to Title IV policy. If you unofficially withdraw, the aid will be calculated at the 50 percent mark of attendance. A student whose attendance is documented past the 60 percent mark will not be subject to the Return to Title IV policy.
Funds will be returned in the following order:
1.Unsubsidized Direct Stafford Loan
2.Subsidized Direct Stafford Loan
3.Direct Plus Loan
Withdrawing or Dropping Classes
Withdrawing from a class always affects financial aid.
Withdrawing during drop/add reduces your "Actual" financial aid prior to disbursement.
Withdrawing from a class you never start requires immediate repayment of the unearned
Withdrawing from a class and receiving a W does not require repayment of financial aid as long as you remain enrolled in your other classes for the full term.
Withdrawing from all classes OR failing all classes requires immediate repayment of any unearned financial aid (R2T4) unless you attended more than 60% of the term.
A W (withdraw) on your transcript always affects financial aid. Even if no repayment is necessary, a W is unsuccessful and affects your Satisfactory Academic Progress for future financial aid eligibility.