Return of Title IV Funds Policy for Title IV Recipients (Excluding FCWS)

McLennan Community College Office of Financial Aid Return to Title IV Chapter 19

Return of Title IV Funds Policy for Title IV Recipients (excluding FCWS)

Process Overview and Applicability

McLennan Community College will return any unearned funds received from federal student assistance programs to the proper program accounts in accordance with Federal Title IV student assistance regulations, under 34 CFR, section 668.22(d) of the Reauthorization of the Higher Education Act of 1965, as amended.

Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, they may no longer be eligible for the full amount of the Title IV funds that they were originally scheduled to receive. For students who received any Title IV aid, other than FWS, funds required to be returned will be refunded to the program(s) from which the award was funded. Up through the 60% point in the period of enrollment, a pro rata schedule is used to determine the amount of Title IV funds the student has earned as of the last date of attendance. After the 60% point in the period of enrollment, a student will have earned 100% of the Title IV funds they were scheduled to receive during the period. In order to recognize that students completing more than 60% of the period earn 100% of their Title IV aid, amounts of .6001 through .6004 are not rounded for the purpose of determining whether a student has earned 100% of the Title IV funds for the term. However, a Return to Title IV calculation must be completed even if the student has completed more than 60% to determine if the institution owes the student a post-withdrawal disbursement.

Attendance

McLennan Community College is a school that is required to take attendance based on the College Attendance Policy (B-II). The College is not required to take attendance by the State of Texas or the Southern Association of Colleges and Schools.

Withdrawal

For the purposes of this policy, withdrawal refers to a total withdrawal from all course work at the College.

Withdrawal Process

Withdrawal from a Course

Revised July 2012 1 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19

Students who are considering withdrawing from a course are to contact one of the following, preferably in the order listed: instructor, advisor, program director or division chair. If, after consultation between the student and the instructor, there is a decision to withdraw through the 60 percent point in the semester or term, it is the responsibility of the student to see that the Change in Schedule Form is filed with the Office of Student Records. (The instructor can also request that a student be withdrawn from a course through WebAdvisor.) If, after the 60 percent point in the semester or term and after consultation between the student instructor, there is a decision to withdraw, it is the responsibility of the instructor to submit the Change in Schedule Form to the Office of Student Records (or request that the student be withdrawn from a course through WebAdvisor) as soon as possible or prior to the last class day of a semester or term. The effective date for withdrawing from a course is the date the Change in Schedule Form is received at the Office of Student Records.

Withdrawal from College

In case of emergency where the student must withdraw from the college, the student may request withdrawal by one of the following: 1) advisor or 2) Office of Student Records. Withdrawal from college requires the return of all college-owned property and payment of all outstanding debts. Official transcripts will be issued only after all obligations to the college have been met. Students who receive financial assistance should contact the Office of Financial Aid before withdrawing from a class or withdrawing from the college to determine how their financial aid will be affected by the reduction of hours.

Withdrawal Date

The determination of the withdrawal date may vary with the type of withdrawal.

Official Withdrawal – Since MCC is required to take attendance based on our policies, the official notification of withdrawal is the date the instructor determines that a student last attended/participated in an academically related activity. As the instructor withdraws the student, they are required to enter that last date of attendance into the College Colleague system.

Unofficial Withdrawal – According to MCC policy (B-II), once a student misses 25% of a course, the instructor will withdraw the student and enter the last date of attendance in the College Colleague system.

Administrative Withdrawals – If the College administratively withdraws a student (expels, suspends, or cancels the student’s registration) who has not notified the

Revised July 2012 2 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19 school of his or her intent to withdraw, the last possible date of withdrawal for the student is the date the school terminates the student’s enrollment.

Withdrawal Date when a Student Dies – In the case of a student death, the withdrawal date will be the last date of attendance from the instructors attendance records.

Never Began Attendance

For students whom the faculty indicate the student never began attendance in the course, the individual student financial aid awards will be recalculated excluding the enrollment for which they never began attendance. If the student has already been paid, the funds will be returned to the program and the student billed for the same amount.

Withdrawals from Courses Offered in Modules

For classes offered in modules, a student is a withdrawal for Title IV purposes if the student ceases attendance at any point prior to completing the period of enrollment, unless the school obtains written confirmation from the student at the time of withdrawal that he or she will attend a module that begins later in the same period of enrollment. If the student does not return as scheduled, the student is considered to have withdrawn from the period of enrollment.

Leave of Absence – McLennan Community College does not offer a Leave of Absence at this time.

Earned Aid

If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the amount of Title IV grant or loan funds earned by the student must be determined. The withdrawal date is used to determine the point in time that the student is considered to have withdrawn so the percentage of the period of enrollment completed by the student can be determined. The percentage of Title IV aid earned is equal to the percentage of the period of enrolment completed. If the day the student withdrew occurs when or before the student completed 60% of the period of enrollment, the percentage earned is equal to the percentage of the period of enrollment that was completed. If the day the student withdrew occurs after the student has completed more than 60% of the period of enrollment, the percentage earned is 100%. If the amount disbursed to the student is greater than the amount earned, the unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and for which the student is

Revised July 2012 3 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19 otherwise eligible, he or she may be eligible to receive a post-withdrawal disbursement.

Post Withdrawal Disbursement.

After performing the Return of Funds calculation, a student receives less Title IV aid than the amount earned, the College must offer a disbursement of the earned aid that was not received. This is called a post-withdrawal disbursement.

The College is permitted to credit a student’s account for the post-withdrawal disbursement of Title IV grant funds without the student’s permission for current charges for tuition, fees and room and board up to the amount of outstanding charges within 180 days of the date of the determination that a post-withdrawal disbursement is made. The College is also permitted to use a student’s or parents authorization for crediting a student’s account for educationally related expenses that was obtained prior to the student’s withdrawal date. The College will disburse any amount of post-withdrawal disbursement of grant funds that is not credited to the student’s account no later than 45 days after the date of determining that the student withdrew.

The College will notify a student, or parent for a PLUS loan, in writing prior to making any post-withdrawal disbursement of loan funds, whether those loan funds are to be credited to the student’s account or disbursed directly to the student or parent. This notification will be provided within 30 days of the date of determination that the student has withdrawn. In addition, the notice will request confirmation of any post- withdrawal disbursement that the student or parent, as applicable, wishes the College to make. In the notification, the College will advise the student or parent that the student has 14 days to respond. If the student does not respond within the timeframe, the College is not required to make the post-withdrawal disbursement. If a student or parent submits a timely response accepting all or a portion of a post- withdrawal disbursement, the College will disburse any amount of post-withdrawal disbursement of loan funds that are not credited to the student’s account within 180 days of the date of determination that the student has withdrawn. If the student or parent does not respond to the notification within 14 days, the College is not required to make the post-withdrawal disbursement; however, the College may choose to make a post-withdrawal disbursement based on an acceptance received from a student or parent after the deadline. This decision will be made on a case by case basis and documented in the student file.

Order of Return of Funds The College will return Title IV funds to the programs from which the student received aid during the period of enrollment, in the following order, up to the net amount disbursed from each source: Revised July 2012 4 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19

1. Unsubsidized Direct Loan 2. Subsidized Direct Loan 3. Federal PLUS Loans 4. Federal Pell Grant 5. Federal Supplemental Educational Opportunity Grant

The College will return unearned funds for which it is responsible as soon as possible, but no later than 45 days from the determination of a student’s withdrawal.

Overpayments and Student Eligibility

Students who owe overpayments as a result of withdrawals initially will retain their eligibility for Title IV funds for a maximum of 45 days from the earlier of the date the College sends the student notice of the overpayment, or the date the College was required to notify the student of the overpayment. Within 30 days of determining that a student who withdrew must repay all or part of a Title IV grant, the College will notify the student that he or she must repay the overpayment or make satisfactory arrangements to repay it. The student’s eligibility for additional Title IV assistance will end if the student fails to take positive action by the 45th day following the date the College sent or was required to send notification to the student. In addition, if the student takes no positive actions during the 45 day period, the College will report the overpayment to NSLDS and refer the overpayment to Debt Resolution Services immediately after the 45 day period has elapsed. At this time, McLennan Community College does not enter into a repayment agreement for any overpayment amount that it has or will report to NSLDS and Debt Resolution Services.

Percentage Completed

The regulations provide that the percentage of Title IV aid that is earned by the student is equal to the period completed by the student. If the percentage is more than 60 percent, then the student is considered to have earned 100 percent of the Title IV aid. The percentage of the period of enrollment completed is determined by dividing the number of calendar days completed in the period of enrollment, as of the last day of attendance, by the total number of calendar days in the same period. The number of calendar days in the numerator or denominator includes all days within the period, except for institutionally scheduled breaks of five or more consecutive days. The last day of attendance is counted as a completed day.

Rescission of Withdrawal

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The College may allow a student to rescind his or her official notification to withdraw by filing a written statement stating his or her intent to remain in academic attendance through the end of the period of enrollment. If the student subsequently withdraws after rescinding their intent to withdraw, the withdrawal date is the date the student first provided notification to the College or began the College’s withdrawal process, unless the College chooses to document a last date of attendance at an academically related activity

Return of Unearned Aid – College Responsibility

The College must return funds in the order specified above, either the the lesser of the amount of Title IV funds that the student does not earn; or the amount of institutional charges that the student incurred for the period of enrollment multiplied by the percentage of funds that were not earned.

Return of Unearned Aid – Student Responsibility

After the College has allocated the unearned funds for which it is responsible, the student must return assistance for which the student is responsible in the order specified above. The initial amount of unearned Title IV aid due from the student is determined by subtracting the amount returned by the school from the total amount of unearned Title IV funds to be returned. This is called an initial amount due from the student because a student does not have to return the full amount of any grant repayment due. The student must return or repay the amount determined to any Title IV loan program in accordance to the terms of the student’s promissory notes. The amount of grant overpayment due from the student is limited to the amount by which the original grant overpayment exceeds half of the total Title IV grant funds disbursed or could have been disbursed to the student. The student is obligated to return any Title IV overpayment in the same order that is required for school. Grant overpayments may be resolved through full and immediate repayment to the institution; repayment arrangements satisfactory to the school; or overpayment collections procedures negotiated with Debt Resolution Services. A student does not have to repay a grant overpayment of $50 or less for grant overpayments resulting from the student’s withdrawal. As a result, a grant overpayment of $50 or less will not make the student ineligible to receive Title IV, HEA program assistance should the student return to school. A school is not required to attempt recovery of that overpayment, report it to NSLDS or refer it to Debt Resolution Services.

Time Frame for Return of Funds

The College must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of determination that the student withdrew. Revised July 2012 6 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19

Credit Balances

When a student withdraws during a payment period, a Title IV credit balance created during the period is handled as follows:

The College will not release any portion of a Title IV credit balance to the student and will not return any portion of the Title IV funds prior to performing a Return to Title IV calculation. The College will hold these funds even if, consistent with the 14 day credit balance payment requirement it would otherwise be required to release them.

The College will perform the Return of Title IV aid calculation, including any existing Title IV credit balance for the period in the calculation as disbursed aid.

Apply any applicable refund policy (state, accrediting agency, institutional, etc.) to determine if doing so creates a new or larger Title IV credit balance.

The Title IV credit balance will be allocated as follows:

Any Title IV credit balance must be allocated first to repay any grant overpayment owed by the student as a result of the current withdrawal. The institution must return such funds to the Title IV grant account within 14 days of the date that the institution performs the Return of Title IV aid calculation.

Within 14 days of the date that the institution performs the Return to Title IV calculation, MCLENNAN COMMUNITY COLLEGE must pay any remaining Title IV credit balance funds in one or more of the following ways: in accordance with the cash management regulations to pay authorized charges at the institution; with the student’s authorization, to reduce the student’s Title IV loan debt; or to the student.

If the College is unable to locate the student to whom a Title IV credit balance must be paid, the credit balance will be returned to the appropriate Title IV programs. The Department does not specify the order of return to the Title IV programs for a credit balance and the College will make the determination that is in the best interest of the individual student.

Title IV Aid That Could Have Been Disbursed

Any undisbursed Title IV aid for the period for which the return calculation is performed is counted as aid that could have been disbursed as long as the following conditions were met before the date the student became ineligible: Revised July 2012 7 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19

The Department processed a SAR or ISIR with an official EFC for the student;

the institution certified a Direct Loan;

or for an SEOG award, the institution made the award to the student.

The College may not disburse as a post withdrawal disbursement any Title IV funds that the College was prohibited from making on or before the date the student withdrew. Therefore, although the following potential disbursements can be counted as aid that could have been disbursed, the College is prohibited from disbursing:

A second disbursement of Direct loan funds where the student has not reached the later of the calendar midpoint of the loan;

A second or subsequent disbursement of Direct Loan funds unless the student has graduated or successfully completed the loan period;

A disbursement of Direct loan funds for which the borrower has not signed a promissory note;

A disbursement of a Direct loans to a first-year, first-time borrower who withdraws before the 30th day of the student’s program of study;

A disbursements of a Federal Pell Grant or Iraq and Afghanistan Service Grant funds to a student for whom the College did not receive a valid SAR/ISIR by the deadline date established by the Department of Education;

A disbursement of a Federal Pell Grant or Iraq and Afghanistan Service Grant for a subsequent payment period when the student has not completed the earlier payment period for which the student has already been paid; and

A first disbursement of a Direct Loan to a student enrolled in a modular program who has withdrawn before beginning attendance in enough courses to establish a half time enrolment status.

Verification not Complete Before Withdrawal

If a student provides all documents required for verification after withdrawal but before the verification submission deadline, and in time to meet the 30 day return deadline, a return calculation will be performed including all Title IV aid for which the student has established eligibility as a result of verification and for which the

Revised July 2012 8 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19 conditions of a late disbursement had been met prior to the student’s loss of eligibility due to withdrawal.

If a student does not provide the required documents in time to complete the verification process and meet the return deadlines, only the Title IV aid that was not subject to the verification process (PLUS and unsubsidized loan funds) will be included in the return calculation

If a student provides all the documentation required for verification before the verification deadline but after a return calculation has been completed, a new return calculation will be performed including as aid that could have been disbursed all Federal Student Aid for which the student has established eligibility based upon verification and for which the conditions of a late disbursement have been met prior to the student’s loss of eligibility due to withdrawal.

Treatment of a Student who Fails to Receive a Passing Grade in any Class

McLennan Community College attendance policy (B-II) is inserted below.

“Regular and punctual attendance is expected of all students, and each instructor will maintain a complete record of attendance for the entire length of each course, including online and hybrid courses. Students will be counted absent from class meetings missed, beginning with the first official day of classes. Students, whether present or absent, are responsible for all material presented or assigned for a course and will be held accountable for such materials in the determination of course grades. In the case of online and hybrid courses, attendance will be determined in terms of participation, as described in the course syllabus. Absence from 25 percent of scheduled lecture and/or laboratory meetings will be taken as evidence that a student does not intend to complete the course, and the student will be withdrawn from the course with a grade of W. The instructor may reinstate the student if satisfied that the student will resume regular attendance and will complete the course. If the student’s 25 percent absences are reached after the official drop date, the instructor may assign a W, if the student is passing and requests to be withdrawn. However, if a student who is not passing reaches the 25 percent point after the official drop date, the student will receive an F. In extenuating circumstances, the instructor may assign a W to a student who is not passing.”

Because the attendance policy requires both monitoring attendance and withdrawing students who miss a certain percentage before the official drop date (60% percentile of the term), students who are assigned a grade of “F” have actually earned the grade so a

Revised July 2012 9 McLennan Community College Office of Financial Aid Return to Title IV Chapter 19 return calculation is not performed for this group. Additionally the Student Grading System Policy (B-XIV-c) describes the grade requirements for a “W” grade.

“Grade in Course A EXCELLENT 4 B GOOD 3 C FAIR 2 D POOR 1 F FAILURE 0 W WITHDREW - This grade is given for an instructor or student-initiated course withdrawal through the 60 percent point in the semester or term. After the 60 percent point, an instructor may authorize a course withdrawal and assign either a “W” if passing work was being accomplished or an “F” (or NC, Non-Completion, for a student in a developmental class) if the student was doing failing work. In extenuating circumstances, the instructor may assign a “W” to a student who is not passing through the last regular day of a semester or term.”

Procedures for Calculating Return of Funds – McLennan Community College uses the Ellucian Colleague Student Information System for the maintenance and storage of student records and information. Within this system are automated processes including the Return of Title IV Funds. The system is set up each year to include the term dates, any semester breaks exceeding 5 days and the system is linked to the College billing system to collect tuition, fee and book charges for the semester.

On a weekly basis, the Assistant Director of Financial Aid will run a process that generates the listing of all students for whom the faculty have indicated have withdrawn and the last date of attendance for each class. Using this list of students, the return of funds process within Colleague is run to calculate each repayment or post-withdrawal disbursement.

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