Important Notice to All Federal Financial Aid Recipients: The federal Higher Education Act (HEA) of 1965 was amended in 1998 and new regulations were established with regard to Title IV student financial aid programs. Students earn their Title IV federal financial aid by attending class and if they are not enrolled long enough to earn all of their aid, the ’unearned’ portion must be returned to the appropriate Title IV program.
Title IV financial aid programs include:
- Federal Pell Grant,
- Federal Supplemental Educational Opportunity Grant (SEOG),
- Federal Work-Study (FWS),
- Federal Stafford Loans and Parent PLUS loans
Federal Work-Study earnings are not affected by Title IV regulations concerning the return of unearned federal financial aid. Only grants and loans are affected by this policy.
The Return of Unearned Title IV Funds Policy applies if the student withdraws from, changes enrollment status, or ceases attending all classes before the sixty percent point in the term. Students who are granted ‘Incomplete’ grades and do not finish in accordance with school policy may also be subject to a Title IV Return calculation.
Withdrawal Information: Any course in which a grade of ‘W’ is given is counted in hours attempted. Be aware that excessive withdrawals from classes could result in the loss of eligibility for financial aid. Additionally, students may be required to repay unearned aid for complete withdrawals and will lose their eligibility if they fail to do so.
•In the event that a student withdraws from the college in any given semester, a return of Title IV calculation will be required if a student withdraws before he/she reaches the 60% point in each payment period of enrollment. After the 60% point in a period of enrollment a student has earned 100% of the Title IV funds.
•Title IV aid is awarded under the assumption that a student will attend as a full-time student for the entire period for which the assistance is awarded. When he/she withdraws the financial aid will adjust (therefore; if a student has received a refund (based on Federal Aid he/she will then owe the funds back to BRCC). When a student withdraws from all courses before the 60% point he/she may not be eligible for the full amount of Title IV funds originally scheduled. Any unearned funds must be returned. Failure to adhere could jeopardize a student’s ability to receive financial assistance at any institution of higher learning.
Withdrawing may also affect future financial aid eligibility. Please speak to a financial aid counselor before withdrawing from classes at BRCC.
BRCC and the student will be required to return to the federal aid programs the amount of aid received in excess of the aid "earned" for the period the student remained enrolled. The portion of financial aid grants and loans funded, excluding Federal Work-Study, which must be returned to financial aid programs will be based on the following components:
Date of withdrawal as determined by the college based on one of the following:
- The date the student began Baton Rouge Community College's withdrawal process;
- The date the student officially notified the institution of intent to withdraw;
- The midpoint of the enrollment period for a student who leaves without notifying the institution (an unofficial withdrawal);
- The student's last date of attendance at a documented academically related activity.
Percentage of the enrollment period earned:
- Divide the number of days attended by the number of days in the term (including weekends and holidays).
- If official withdrawal occurs after the 60% date, the student has earned all of the financial aid received and no refund will be required.
Unearned Title IV funds are returned to Title IV programs based on a federally mandated formula. Under this formula, institutions are obligated to return unearned funds collected for institutional charges to the US Department of Education and/or the student loan lender. Students are obligated to return unearned funds beyond the institutional charges to the Department of Education.
Return of the Title IV Aid, based on the type of aid disbursed, in the following order:
1. Federal Unsubsidized Stafford Loan
2. Federal Subsidized Stafford Loan
3. Federal PLUS Loan
4. Federal Pell Grant
5. Federal Supplemental Educational Opportunity Grant
6. Other Title IV Programs
These unearned Title IV funds are posted to the student’s BRCC account and must be repaid.
The college is required to notify the student within 45 days of determining the student’s withdrawal of any student portion of unearned Title IV funds from a federal grant. The student is allowed 45 days to repay the amount to Baton Rouge Community College who will forward the funds to the Department of Education. After that time payment arrangements must be made with the U.S. Department of Education or eligibility for federal financial aid at any higher education institution will be denied. The student also needs to repay to the institution the money that BRCC is required to return to the Department of Education for the unearned institutional charges.
The institutional charges (tuition and fees) incurred by the student are considered to be paid by Title IV funds for the purpose of the formula, even if the institutional charges were directly paid by a source other than Title IV funds.
Students can repay the student portion of federal loans under the terms and conditions of the promissory note for the loan. However, the unearned portion of the loans that BRCC must return is posted as a charge to the student account and must be repaid.
Institutional and student responsibilities in regard to the Federal Return of Title IV Funds policy
The Office of Financial Aid & Scholarships’ responsibilities in regard to the Return of Title IV funds policy include:
1. Providing each student with the information given in this policy;
2. Identifying students affected by this policy and completing the Return of Title IV Funds calculation;
3. Informing the student of the result of the Return of title IV Funds calculation and any balance owed to the College as a result of a required return of funds;
4. Returning any unearned Title IV aid that is due to the Title IV programs and, if applicable, notifying the borrower’s holder of federal loan funds of the student’s withdrawal date;
5. Notifying student and /or Plus borrower of eligibility for a Post-Withdrawal disbursement, if applicable;
The student’s responsibilities in regards to the Return of Title IV Funds policy include:
1. Becoming familiar with the Return of Title IV Funds policy and how withdrawing from all
his/her courses affects eligibility for Title IV aid;
2. Resolving any outstanding balance owed to Baton Rouge Community College resulting from a
required return of unearned Title IV aid.
The procedures and policies listed above are subject to change without advance notice.