Return of Title IV Funds

Students who receive federal Title IV aid assistance and who cease attending classes and do not officially notify the institution (unofficial withdraw) or officially withdraw from classes at CWC will be subject to Return of Title IV. Students in either scenario will have a Return to Title IV calculation performed on their account per federal regulations 34 CFR 668.22. This calculation determines the portions of earned and unearned aid based on period of attendance. Based on this calculation the student may be required to repay a portion of the federal aid they have received. Students earn a percentage of aid each day of the period enrolled, beginning on the first day of the period. When a student withdraws the date of that withdrawal is used to then determine the number of days attended. The number of days attended are then divided by the total number of days in that period.  This calculation results in the percentage of aid earned. 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

Federal Work Study funds are NOT included in the calculation.

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.