Return of Funds Policy
Tarrant County College Return of Title IV Funds Policy
Attention all Tarrant County College Title IV Financial Aid recipients.
The Higher Education Act of 1998 resulted in a major change in Federal Financial Aid regulations in reference to the refund and repayment of Title IV aid. Effective with the 2000–2001 academic year and continuing with subsequent academic years.
"When a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance...that the student earned as of the student's withdrawal date…The institution must return, in the order specified…the lesser of…(i) The total amount of unearned title IV assistance to be returned…or (ii) An amount equal to the total institutional charges incurred by the percentage of title IV grant or loan assistance that has not been earned by the student…After the institution has allocated the unearned funds for which it is responsible…the student must return assistance for which the student is responsible…" (CFR 668.22). The Department of Education considers a student who earns all F's to have unofficially withdrawn unless an instructor can prove otherwise. Students in this category must repay 50% of disbursed Title IV funds.
Title IV aid is earned in a prorated manner on a per diem basis up to and including the 60% point in the term. After the 60% point all aid is considered earned. The percentage earned is calculated by dividing the number of days completed by the number of days in the payment period. It is the unearned percentage of aid that determines the amount that must be returned to the Title IV program(s). The College, as well as the student, may be required to return to the federal government, the unearned portion of the Title IV funds.
Beginning with the 2000-2001 academic year, the institution will require students to repay charges resulting from the institutions portion of the return of unearned Title IV aid. This may cause the student to owe both the College and the federal government.
Students who are considering withdrawing from all classes should contact the Financial Aid Office for a thorough explanation of how this policy will affect them.
Updated April 06, 2017