Federal Student Aid Title IV Aid Withdrawal/Repayment Policy
Financial Aid recipients are strongly encouraged to read and understand this Federal Title IV Financial Aid policy as well as the Pellissippi State Community College Withdrawal Refund Policy. The policies are separate and are calculated differently. It is important that you are aware of your financial responsibility if your enrollment status changes.
AT PSCC Federal Title IV Student Financial Aid is paid to students based upon their calculated EFC, enrollment status and class attendance. Students planning to withdrawal from all of their classes within a term must contact the Financial Aid Office to see how the withdrawal will affect their financial aid status, and whether repayment of Federal Aid would be due. There are occasions when unforeseen events occur in a student's life that can result in withdrawal from college. If this occurs, it is essential that you know the policy and follow the proper steps for withdrawal. A student should never just stop attending a class in place of withdrawing from it.
What Qualifies as a Federal Title IV Fund?
- Federal Direct Loans - Subsidized and Unsubsidized Stafford Loans, PLUS-Parent Loans for Undergraduate Students
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (SEOG)
Federal Regulations for Withdrawing
- A student who changes their enrollment status within the first 14 days of classes 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 in each class in which you are enrolled in order to receive Federal Title IV Financial Aid for the class. Failure to report the required attendance in a class may result in a loss or delay of Federal Aid for the term. 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.
- Students that receive Federal Title IV Financial Aid and officially withdraw from school or stop attending all classes (unofficial withdrawal) during a term they have begun attending class(es) may have to return a percentage of unearned funds to the Federal Financial Aid Program.
- The Financial Aid Office will recalculate the amount of Financial Aid a student is authorized to keep when a student officially or unofficially withdraws from the college prior to completing 60% of a term. The re-calculation will be done using the Federal Student Aid Return of Title IV Aid formula.
- A student who completes more than 60% of the period of enrollment has earned all of their Financial Aid assistance.
- When a student officially or unofficially withdraws from the school, the percentage or portion of the student's financial aid received but not "earned" must be repaid.
EXAMPLE: A student who withdraws completing 30% of the term will have "earned" only 30% of Title IV Financial Aid, the remaining 70% must be returned
- The Financial Aid Office will review official records periodically through the semester and at the end of each semester for class attendance and student withdrawals.
- If Pellissippi State determines that a student has officially or unofficially withdrawn from a full semester term, they will perform a return of Federal Title IV Aid Calculation. If the calculation results in an amount of Federal Aid due to be paid back to the Dept. of Education. Pellissippi State will notify the student of the amount due to the college within 30 days of determining the student's withdrawal.
- The student has 45 calendar days after notification to make a repayment in full or make satisfactory repayment arrangements with Pellissippi State Cashier's Office.
- Students owing Pell repayments to the Federal Dept of Education will be INELIGIBLE to receive any Title IV until the overpayment is repaid.
- The student loan amounts to Direct Loans will be repaid according to the terms of the promissory note.