Federal Title IV Refund Requirements
This policy applies only to students who receive Federal student financial assistance under Title IV of the Higher Education Act. Types of assistance are the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Teacher Education Assistance for College and Higher Education Grant (TEACH), Iraq Afghanistan Service Grant, Federal Direct Loan (subsidized and unsubsidized) and Federal Direct Parent PLUS Loan. A student who withdrawals from or stops attending courses prior to completion of more than 60 percent of the semester will be required to repay all or a percentage of the federal aid received. If a student plans to attend both the A term and the B term, and withdraws from all classes in the A term or withdraws from all classes in the B term, he/she may be required to repay all or a percentage of the federal aid received. For example: A student who withdraws from all A term classes prior to completion of more than 60 percent of that term, and is registered for B term classes, must confirm in writing at the time of withdrawal from the A term that he/she does intend to enroll in the B term classes. If the student does not submit this written confirmation of the intent to enroll in the B term classes at the time of withdrawal from the A term, the student will be considered withdrawn for financial aid purposes, and the student may be required to repay all or a percentage of the federal aid received. (Also, if the student completes all classes from the A term, but withdraws (or drops) from all classes from the B term, the student will also be considered withdrawn for financial aid purposes, and the student may be required to repay all or a percentage of the federal aid received.)
This may result in the student owing a balance to the College and/or the federal government. These funds are returned in a specific order until each program is reimbursed up to 100 percent of the amount received by the student for that term. The distribution order for the return of funds is as follows:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Direct Parent PLUS Loan
- Federal Pell Grant
- Federal SEOG
- Federal TEACH Grant
- Iraq Afghanistan Service Grant
If determined by the calculation, the student must repay the portion of the original grant overpayment that is in excess of half of the total Title IV grant funds that he/she received or could have received. The student does not have to repay grant overpayments of $50 or less per program. Any repayment of Title IV loans is to be repaid under the conditions of the existing promissory note. A student who owes a grant repayment remains ineligible for further Title IV financial aid until the grant is repaid, unless the student and the U.S. Department of Education agree on a satisfactory repayment arrangement. The U.S. Department of Education allows a student to retain eligibility for 45 days from the date that the institution sends the repayment notification to the student. After 45 days, the student will either have to pay the overpayment in full or make satisfactory arrangements with the U.S. Department of Education to repay the overpayment to retain eligibility for Title IV financial aid.
Unpaid balances will result in a hold on the student's records, diplomas, transcripts, and future registration activity. Furthermore, these debts may be referred to an outside collection agency and to appropriate credit bureaus. Resulting collection costs will be added to the original debt and the student must pay these costs, as well as attorney's fees, if applicable.
Please feel free to contact the Financial Aid Services Office at 386-506-3015 or email us at financialaid@DaytonaState.edu if you have any questions regarding financial aid.