Title IV Refund Policy
Adjustments to tuition and fee charges resulting from official resignation are based on the effective date of resignation and in accordance with the federally mandated calculation.
The law specifies how NWCCD must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Academic Competitiveness Grants, National SMART Grants, TEACH Grants, Direct Stafford Loans, Direct PLUS Loans, Federal Supplemental Opportunity Grants, and Federal Perkins Loans.
When you withdraw during the payment period or period of enrollment, the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received less assistance than the amount that you have earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by NWCCD or you.
The amount of assistance that you have earned is determined on a prorata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. Your school may automatically use all or a portion of your post-withdrawal disbursement of grants funds for tuition, fees, and room and board charges (As contracted with the school). The school needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission (some schools ask for this when you enroll), you will be offered the funds. However, if may be in your best interest to allow the school to keep the funds to reduce your debt at the school.
If you receive, or your parent receives on your behalf, excess Title IV program funds that must be returned, NWCCD will return a portion of the excess equal to the lesser of:
- Your institutional charges multiplied by the unearned percentage of your funds, or:
- The entire amount of the excess funds.
The school must return this amount even if it didn’t keep this amount of your Title IV program funds. Funds are returned to the following Title IV sources in order of priority.
- Unsubsidized Direct Stafford Loans
- Subsidized Direct Loans
- Federal Perkins Loans
- Direct PLUS loans
- Federal Pell Grants
- ACG Grants
- SMART Grants
- Federal SEOG
- Teach Grant
- Other Title IV assistance for which a return of funds is required
- Other Federal, state, private, or institutional financial assistance
If your school is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You must make arrangements with NWCCD or the Department of Education to return the unearned grant funds.
If you have any questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-433-3243. Information is also available on Student Aid on the Web at http://www.studentaid.ed.gov.