As a result of the Higher Education Amendments of 1998, federal financial aid recipients who completely withdraw from all their classes or who cease attending all their classes (prior to attending more than 60 percent of the semester) will be subjected to federal requirements for the return of Title IV federal grants (Pell, ACG, SEOG, etc.) and Title IV loans (Subsidized Stafford, Unsubsidized Stafford, Parent PLUS Loans).

The law defines the amount of Federal Title IV grants and loans that the student has earned that can be used to pay for tuition or to retain as a refund. Federal funds must be returned to the federal programs if a student withdraws from all classes or ceases attending all classes prior to completing more than 60 percent of the semester. (Fall A, Fall B, Spring A, Spring B, Summer A, and Summer B are considered distinct semesters in relation to the regulation.)

The Title IV refund calculation is based upon the concept that a student must earn the amount of federal grants or loans that the student has received. A student who withdraws prior to completing more than 60 percent of the semester has not earned the entire amount of grants and/or loans the student has received and, therefore, must return the unearned portion to the appropriate program. To determine the amount of unearned assistance the student must return to the federal programs, the following steps are followed:

Step 1: Calculate the Title IV assistance earned . To calculate the amount of Title IV assistance earned by a student, Daytona State College must first determine the percentage of Title IV assistance the student earned up through the date of withdrawal. The percentage of assistance earned is equal to the percentage of the payment period or period of enrollment for which it was awarded that was completed as of the day the student withdrew. For those students who cease attending all classes without official notification of withdrawal, the withdrawal date is the mid-point of the semester. If the student withdrawal occurs after the 60 percent point, then the percentage is 100 percent. That earned percentage is applied to the total amount of Title IV grant and loan assistance that was disbursed to the student, or on the student's behalf, for the payment period or enrollment for which it was awarded as of the day the student withdrew.

Step 2: Calculate the Title IV assistance not earned . The amount of Title IV grant and loan assistance not earned by the student is calculated by determining the complement of the percentage of assistance the student earned and applying it to the total amount of grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student's behalf, for the payment period or period of enrollment as of the day the student withdrew.

Step 3: Calculate the amount of the student's Title IV funds which has been applied to the student's account and must be returned . Daytona State shall return to the appropriate Title IV program the lesser of the unearned amount of Title IV assistance or an amount equal to the total institutional charges the student incurs for the payment period or period of enrollment for which the assistance was awarded, multiplied by the unearned percentage of awarded Title IV grant and loan assistance. Daytona State will return the unearned percentage of awarded Title IV grant and loan assistance to the federal program(s) according to the order listed below. The student will receive a revised award letter indicating a reduction in Title IV assistance and will also receive a billing statement from the Bursar's Office indicating the amount due as a result of the refund to the federal program(s). Since Title IV assistance was reduced from the student's account and returned to the appropriate programs, the student must pay the outstanding balance by utilization of the student's own resources.

Step 4: Calculate the amount of refund Title IV funds which has been received by the student and must be returned . The student must return the unearned Title IV assistance to the appropriate federal program(s). Additionally, the student must reimburse Daytona State for the student's outstanding account balance.

Note: A student (or parent for Parent PLUS loans) repays the calculated amount attributable to a Title IV loan program according to the loan's terms. A student repays a Title IV grant program subject to repayment arrangements satisfactory to the school or the secretary's overpayment collection procedures. A student shall not be required to return 50 percent of the grant assistance received that is the responsibility of the student to repay.

Order of return of Title IV funds . Funds are returned by the school in the following order:

• Unsubsidized Stafford Loan
• Subsidized Stafford Loans
• Parent PLUS Loan
• Federal Pell Grant
• Federal Academic Competitiveness Grant
• Federal Supplemental Educational Opportunity Grant

Examples of the application of the Title IV Refund Policy are available from the Financial Aid Office at the Daytona Beach Campus upon request.