Federal Repayment Policy
As a result of the Higher Education Act of 1998, a student who completely withdraws from classes may be required to repay a percentage of financial aid funds received.
The Registrar's Office, located in R-101, is the designated office to contact about withdrawing from the college. Office hours are: 8 a.m. to 4:30 p.m. Monday through Friday. For official withdrawal procedures, please see the college catalog.
College refund policy dictates that fees will be refunded in full for course work dropped during the drop with a refund date or canceled by the college. However, the federal repayment policy supersedes the college refund policy for students receiving federal financial aid and completely withdrawing from the college.
In general, a portion of federal student financial aid (Title IV) grant or loan funds, but not federal college work study funds, must be returned to the Title IV programs upon a recipient's withdrawal from school. Simply put, any Title IV financial aid recipient who withdraws within the first 60 percent of the payment period measured in calendar days owes a portion of unearned aid back to the federal government. The college will also owe a percentage of the refund of the institutional costs. Any amount that the college repays will be billed to the student. All students receiving Title IV assistance who completely withdraw are subject to the federal repayment law. This law uses the terms "earned" and "unearned" Title IV funds when relating the amount of assistance applicable to the percentage of time enrolled. It is the unearned portion that becomes the focus of the Return of Title IV Funds formula.
The school must first determine the percentage of Title IV assistance the student earned. Up through the 60 percent point in time, the percentage of assistance earned is equal to the percentage of the payment period completed as of the day the student withdrew. If the withdrawal occurs after the 60 percent point, then the percentage earned is 100 percent, and no refund/repayment is required. The difference between the earned Title IV assistance and 100 percent equals the percentage of unearned Title IV funds that are therefore subject to repayment by the school and/or the student. Any required repayment is allocated back to the Title IV programs in order specified by law.* A student must repay the portion of the original grant overpayment that is in excess of half of the total Title IV grant funds that he or she received or could have received. The student does not have to repay grant overpayments of $50 or less per program. Any repayment of Title IV loans is to be repaid under the conditions of the existing promissory note. A student who owes a grant repayment remains ineligible for further Title IV assistance until the grant is repaid, unless the student and the U.S. Department of Education agree on a satisfactory repayment arrangement. The U.S. Department of Education allows a student to retain eligibility for 45 days from the date that the institution sends the repayment notification to the student. To continue eligibility past 45 days, the student will either have to pay the overpayment in full or make satisfactory arrangement with the U.S. Department of Education to repay.
For more specific information regarding this policy or for examples of the repayment formula, please contact the Financial Aid Office at (352) 395-5480.
*Return Title IV funds in the order as specified by law:
- Unsubsidized Federal Stafford Loans
- Subsidized Federal Stafford Loans
- Unsubsidized Direct Stafford Loans
- Subsidized Direct Stafford Loans
- Federal PLUS Loans
- Direct PLUS Loans
- Federal Pell Grant
- Federal SEOG
- Other Title IV assistance
Unofficial Withdrawal (Dropping Out):
What happens with financial aid when I stop attending class or earn all failing grades? Federal regulations require a student to complete the term for which they were funded. If you have withdrawn from all of your classes, stopped attending all your classes, or did not successfully complete any of your classes (received all F’s), the College is required to calculate how much of the semester you did attend to determine how much of the aid you have “earned.” You will be required to pay back the portion of financial aid you did not earn.
How is this calculation done? When the Financial Aid Office calculates the Return to Title IV calculation we must use the last date of enrollment and/ or your last date of academic activity, as reported by your instructors, to determine how much aid you have earned. This date determines how much, if anything, you must repay if you do not successfully complete any of your courses.
Please note, you may not be required to repay your financial aid under these rules if you only drops one or two courses and remain enrolled in at least one financial aid funded course. It is only required when a student is no longer enrolled in or does not pass all courses for a particular term (A and B terms included).