Refund & Repayment:
Return of Title IV Federal Financial Aid Funds
Renton Technical College’s
Institutional Tuition Refund Policy operates independently from the return of
federal financial aid funds policy required for all financial aid recipients.
The Institutional Tuition Refund Policy applies to the first twenty calendar
days of an enrollment period. The "Return of Title IV Funds" policy applies
to the completion of clock-hours in a financial aid "payment period".
The return of federal financial aid funds policy is applied to all financial
aid recipients who withdraw, drop out or otherwise fail to complete at least
61% of the scheduled hours in the payment period for which they have received
federal funds.
Unearned Title IV Federal funds (grants and loans) must be returned to the
appropriate federal program by both the college and the student.
The percent of funds “earned” is based upon the number of total clock hours
scheduled to have been completed as of the withdrawal date divided by the
number of hours in the payment period. The percentage of Title IV funds
“unearned” equals 100 percent minus the percent of the Title IV aid earned. The
student and the college may retain the earned portion of aid, but are required
to return a portion of the unearned aid to the appropriate federal grant and/or
loan accounts.
If a student completes more than 60% of the scheduled hours in
the financial aid payment period, it is determined that all financial aid has
been earned.
If a student completes 60% or less of the scheduled hours in a
payment period, the earned and unearned portion of aid, including Washington
State Need Grant, will be calculated.
If the student shows eligibility for federal funds not yet disbursed, a post
withdrawal disbursement of aid can be made even though the student has stopped
attending.
Renton Technical College allocates unearned Title IV and state funds to the
following financial aid programs, in the order shown:
-
Unsubsidized Stafford Loan
-
Subsidized Stafford Loan
-
Federal Plus Loan
-
Federal Pell Grant
-
Academic Competitiveness Grant
-
Federal SEOG
-
Washington State Need Grant
Understanding Return of Title IV Funds
What does “Return of Title IV Funds” mean and how will it impact you? Here are
some answers to a few basic questions to show you how important it is to
understand this federal regulation.
What does the law really mean?
It means that the federal government expects a student to “earn” the financial
aid they have received. Students who receive federal aid in the form of a
Federal Pell Grant, Academic Competitiveness Grant, Federal SEOG or a Federal
Stafford Student Loan are expected to earn those funds by attending school and
completing the block of hours in the “payment period” for which they are paid.
What happens if I drop out or withdraw?
If you leave school before completing more than 60% of the scheduled hours for
which you received aid, you may be required to pay back a portion of the aid
you received. You may also be required to pay the college for a part of your
tuition in addition to returning money to the Department of Education for some
of the money that you received in the form of a check.
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