Policy for Kern Community College District: Return of Title IV Funds
The College will determine the amount of federal financial aid a student has earned in accordance with federal law. Federal financial aid (“Title IV funds”) is awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded.
When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student originally received.
Recipients of federal programs are subject to the Return of Title IV funds requirements. Students who receive federal financial aid and do not attend any classes will be required to repay all of the funds they have received to the college.
Students who withdraw from all classes prior to completing more than 60% of the semester will have their financial aid eligibility recalculated based on the percentage of the semester completed and will be required to repay any unearned financial aid they have received. Failure to repay unearned funds could result in a hold on students account and loss of federal aid eligibility nationwide.
The Financial Aid Offices will run a report (RWRTIL4) every weekly to identify students who were paid Title IV funds and have completely withdrawn from school prior to the 60% enrollment period. This will ensure the college is in compliance of notifying the student within 30 days of official withdrawal. Official withdrawal is the date the student officially withdraws from class OR the last day of participation the instructor submits when dropping or assigning an F grade.
- If a student drops courses or withdraws from all courses prior to the 60% date, the "Amount of Aid already disbursed" and the "Amount of Aid earned” according to the drop date will be determined. Aid award will be adjusted at the second disbursement to award student the remainder of award earned. If the student was determined to have been paid an overaward that cannot be reconciled in another disbursement, the student will be required to return funds to the school and/or the Department of Education. Students that owe the college or Department of Education will be sent a letter of notification. Failure to return funds by the due date stated on the letter will result in ineligibility to receive financial aid nationwide and/or a hold on student accounts preventing further registration.
- If a student receives a withdrawal and/or Fs in all classes during a semester, it is assumed that the student did not actively participate in classes and the student may owe a repayment of aid based on the last day of attendance/participation submitted by the Instructor. Last day of attendance in online classes is submission of assignments, taking test or participating in discussions. Logging in does not qualify as active participation. Active participation in on ground classes is attendance in class. The college will notify the student of the overpayment and the student must repay the Financial Aid Office within the allowable 45 days to maintain eligibility for aid.
- If the student overpayment is not paid within 45 days, the Financial Aid Office will forward a Student Overpayment Referral to the U.S. Department of Education and/or charge the student account.