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Federal Student Aid Title IV Aid Withdrawal/Repayment Policy

Federal Regulations for Withdrawing

  • A student who changes their enrollment status (adds /drops classes) within the first 14 days of a term will have their financial aid adjusted accordingly; after the 14th day, the student will be responsible for any balance on the student's account created by an enrollment status change.
  • Attendance must be confirmed and reported by the instructor of each class in which you are enrolled in order to receive Federal Title IV Financial Aid for that class.  You may check to see if your instructor has reported attendance on “MyPellissippi” under the Student TAB, click on Student Records then click on attendance reporting.   The Class Instructor is responsible for reporting accurate and timely student attendance records during the term.
  • The Financial Aid Office will review enrollment and attendance records weekly throughout the semester and at the end of each semester for class attendance and student withdrawals.
  • Students that receive Federal Title IV Financial Aid and officially withdraw from school or stop attending all classes as reported by attendance records (unofficial withdrawal) may have to return a percentage of unearned funds to the Federal Financial Aid Program.
  • The Financial Aid Office must recalculate the amount of Financial Aid a student is authorized to keep when a student officially or unofficially withdraws from the college. PSCC Financial Aid will use the Federal Student Aid Return of Title IV Aid methodology and Formula to determine the amount of aid the student earned for that term.
  • If it is determined that PSCC has to return a portion of a student’s Federal Financial Aid back to the Department of Education,  the student may owe PSCC a portion or all of the returned aid. Please check your Student Account statement on “MyPellissippi” to determine if you owe a balance after a withdrawal.
  • A student who completes over 60% of an enrollment period, as determined by the Title IV Return Formula, has usually earned all of their Federal Financial Aid assistance for that term.

Repayment Policy

  • If Pellissippi State determines that a student has officially or unofficially withdrawn from a full semester term, a Return of Federal Title IV Aid Calculation (R2T4) will be performed.
  • Within 30 days of determining the student's withdrawal from Pellissippi State, Financial Aid will notify the student that a Title IV Return of Aid calculation has been completed and advise the student to check their PSCC Student Account to see if any balance of Federal Aid must be repaid to PSCC. 
  • The student has 45 calendar days after notification to make a repayment in full or make satisfactory repayment arrangements with the Pellissippi State Cashier's Office. The student will not be allowed to re-enroll or obtain transcripts until their Student Account balance has been resolved with the PSCC Cashiers Office.
  • If the Student had borrowed Federal Student Direct loans, effective the date of determined withdrawal from PSCC, those loans will go into repayment according to the terms of the Master Promissory Note the student signed.

Consequences of Stopping Attendance/Dropping/Failing

If a student stops attending, drops (W), or fails (F) one or more classes, it can affect SAP and future financial aid.  Anyone on an approved financial aid appeal (PLAN) will lose financial aid eligibility.  Below are additional program specific implications.

HOPE and HOPE Access Scholarships:   

  • Full Time Student: If the student begins the semester with 12 or more hours and stops attending or drops below 12 hours, the student will lose the HOPE scholarship FOREVER.  
  • Less than Full Time Student: if the student begins the semester with 6 to 11 hours and stops attending or drops below 6 hours, the student will lose the HOPE scholarship FOREVER.

PELL Grant:

  • If the student drops or stops attending ALL of their courses, a Return to Title IV (R2T4) will be calculated and the student may owe money back to PSCC.

TN Promise:

  • A student must be enrolled as a full-time student (12 or more credit hours) and attend all courses until the end of the semester to maintain eligibility for the TN Promise Scholarship. Any student who drops below 12 credit hours, due to withdrawal or stop attending will lose future eligibility for their TN Promise Scholarship.
  • Failure to complete and submit eight hours of community service each semester by the TN Promise deadline will result in the loss of the scholarship.

Student Loans:

  • If the student drops below 6 credit hours, any subsequent loan disbursements will be cancelled.  The student is responsible for completing Exit Loan Counseling at www.studentloans.gov.
  • If the student drops or stops attending ALL of their courses, a Return to Title IV (R2T4) will be completed and the student may owe money back to PSCC. The student is responsible for completing Exit Loan Counseling at www.studentloans.gov.

Institutional Work Scholarships:

  • If the student drops a class it will not affect the scholarship, however if the student drops all classes, the student will be charged for the unearned work hours, and owe money back to PSCC.

Federal Work Study:

  • If a student drops a class it does not affect FWS as long as the student is still attending at least 6 hours. If the student drops all classes, the student is not eligible to work.

GI Bill (VA):

  • The VA could require repayment of all funds received for the class that is dropped.
  • Decreasing enrollment could greatly affect Basic Allowance for Housing (BAH) for the current semester.
  • The student should always check directly with a VA representative regarding the consequences of dropping/withdrawing.