Return of Title IV Funds

Students who receive federal Title IV aid assistance and who cease attending classes or officially withdraw from classes at CWC may be required to repay a portion of the federal aid they have received. The student earns his or her aid based on the period of time he or she remains enrolled. During the first 60 percent of the enrollment period, a student is entitled to retain a percentage of their grant or loan assistance directly proportional to the percentage of the period of enrollment that was completed and for which assistance was awarded. If the day the student ceases to attend classes or officially withdraws occurs after the student has completed at least 60 percent of the period of enrollment, the student is entitled to retain 100 percent of their grant or loan assistance awarded for the period of enrollment.

Steps to calculate Return of Title IV Funds:

1. Determine percentage of the enrollment period student completed.
2. Apply same percentage to total awarded Title IV aid = “earned aid”
3. Subtract “earned aid” from awarded aid = “unearned aid”
4. Distribute responsibility for returning “unearned aid” between CWC and the student. The college is responsible to return the portion of “unearned aid” equal to the total institutional charges incurred for the period of enrollment multiplied by the percentage of “unearned aid” awarded for the enrollment period. The student is responsible to return total “unearned aid” minus the amount the school is responsible to return.
5. “Unearned Aid” returned by the college and/or the student will be allocated to the Title IV Programs from which the student received assistance in the following order:
   1. Unsubsidized Federal Direct Loan
   2. Subsidized Federal Direct Loan
   3. Federal PLUS Loan
   4. Federal Pell Grant
   5. Federal SEOG Grant

The college must allocate its share of “unearned aid” first. The student’s share is fully allocated among the programs not satisfied by the college’s share. Then, any portion of the student’s share that is allocated to a grant program is reduced by 50 percent.

Grants may be repaid over a two-year period under a satisfactory repayment arrangement with the CWC Business Office. Any portion of the student’s share that is allocated to a loan program is repaid under the terms and conditions of the loan as specified in the promissory note.