Financial Aid Return Policy: Return to Title IV | HCC

Financial Aid Return Policy: Return to Title IV

Students generally receive 100% of their federal financial aid disbursement at the beginning of the semester. Anytime during the semester a student completely withdraws (officially or unofficially) from all courses for that semester, HCC is required to determine the amount of federal aid funds the student “earned” for the semester and return to the federal aid program any funds that are “unearned.” This process is called Return to Title IV (R2T4).

A student who remains enrolled for 10% of a semester will be eligible to keep 10% of the total Title IV aid disbursed to him/her. The balance (or 90%) must be returned to the Title IV program(s). Similarly, a student who remains enrolled for 60% of a semester will be eligible to keep 60% of the total Title IV aid disbursed to him/her. The balance (or 40%) must be returned to the Title IV program(s).

EXAMPLE

William enrolled for the fall semester (August 17 to December 13). He was awarded a Federal Pell grant only. He withdrew from all his classes on September 23. William earned 33.3% of his Federal PELL grant.

Enrollment
8/17 to 9/23
÷ Total number of days
scheduled to complete
= Percentage of semester
completed
38 days  ÷ 114 days* = 33.3%

Tuition and Fees: $2,392.00
Aid Disbursed: $2,363.00 (Federal Pell Grant)
Percentage of aid earned: 33.3%
Total Aid Earned: $787.00
Amount of aid left to be disbursed: $0.00
Percentage of unearned aid: 66.7%
Unearned Tuition and Fees: $1,596.00
Amount returned by HCC: $1,576.00
Amount student must return to Pell Grant program:$0.00

*Excludes Fall Break November 25 to November 29.

Shelbie enrolled for the fall semester (August 17 to December 13). She was awarded a Federal Direct Loan and a Federal Pell grant. She withdrew from all her classes on November 03. Shelbie earned 100% of her Federal Student Aid because she had documented academic related activity beyond 60% of the semester.

Enrollment
8/17 to 11/03
÷ Total number of days
scheduled to complete
= Percentage of semester
completed
79 days ÷ 114 days* = 69.2%

Tuition and Fees: $2,392.00
Aid Disbursed: $4,113.00
Percentage of aid earned: 100%
Total Aid Earned: $4,113.00
Amount of aid left to be disbursed: $0.00
Percentage of unearned aid: 0%
Unearned Tuition and Fees: $0.00
Amount returned by HCC: $0.00
Amount student must return to Pell Grant program:$0.00

*Excludes Fall Break November 25 to November 29.

Official Withdrawals: To completely withdraw from the college the student must follow the appropriate steps outlined by the HCC Registrar’s Office. For questions regarding the withdrawal process contact the Registrar’s Office at 855-224-6422. The student will be held responsible for any and all financial delinquencies which result from failure to complete the withdrawal process by the dates established in the Academic Calendar, which is available online by clicking here.

Unofficial Withdrawals: A student who does not complete the semester but fails to officially withdraw, student receives all failing grades (grades of E, F, W, or Z), and the instructor does not report in PeopleSoft a last date of academic related activity beyond 60% of the semester. Academic Related Activity includes:

  1. Physical class attendance where there is direct interaction between instructor and student.
  2. Submission of an academic assignment; study group assigned by school.
  3. Participation in online discussion about academic matters.
    Unofficial Withdrawals for R2T4 will be calculated at a 50% attendance rate.

If the student completely withdraws from school during the semester while receiving federal student aid, the Financial Aid Office is responsible for calculating the portion of earned and unearned funds. This calculation is based on the percentage of time the student remains enrolled in school and attends classes. The Financial Aid Office will complete the calculation and will work in conjunction with the KCTCS Systems Office to return any funds to the appropriate aid program within 30 days of the student beginning the withdrawal process. Funds will be returned first to the Title IV loan programs and then the Title IV grant programs in the following order:

  1. Federal Unsubsidized Direct Student Loan
  2. Federal Subsidized Direct Student Loan
  3. Federal Plus Loan
  4. Federal Pell Grant
  5. Federal SEOG

In addition, HCC will return on behalf of the student, the student’s portion of unearned Federal Pell Grant and unearned Federal SEOG owed to the aid program. Unearned aid could result in an outstanding balance with HCC Student Billing. An outstanding balance is due immediately to Student Billing. At the time a student withdraws, Student Billing will automatically use the student’s ‘institutional refund’ as payment toward what must be returned to the Title IV programs. The student should be aware of the following…

  • A student with an outstanding balance may be reported as delinquent and a hold placed on the account in Student Billing.
  • A past due balance is subject to a hold on the Student Account Preventing future registration.
  • A student who has not paid an outstanding balance within 70 days can be referred to the Kentucky Department of Revenue (KDR) where additional fees may be added.
  • An outstanding balance resulting from unearned aid cannot be appealed, through the tuition appeal process, Financial Aid Office, Records Office or Student Billing.

For questions regarding an account balance or payment contact Student Billing at 855-224- 6422. HCC will notify the loan server of the student’s withdrawal. Federal Direct Loan funds owed to the servicer by the student are to be repaid according to the terms of the loan.

Post-Withdrawal Disbursement: A post-withdrawal disbursement will occur with aid that could have been disbursed prior to the student’s complete withdrawal from the college. In addition the student must meet all conditions for a late disbursement as required by federal regulations. HCC will notify the student, or parent, in the case of a Federal Direct PLUS Loan, by mail of eligibility for a post-withdrawal disbursement. The student or parent will have 14 days to accept or reject any balance.

Questions regarding the R2T4 calculation, policy or procedures contact the HCC Financial Aid Office by phone at 855-224-6422 or email your questions to hp-hccfinancialaid@kctcs.edu, or visit the office at either campus location.

Important Contacts:

HCC Financial Aid Office 1-855-224-6422 hp-hccfinancialaid@kctcs.edu
HCC Records and Registration 1-855-224-6422  
HCC Student Billing 1-855-224-6422  
Direct Loans 1-800-4-FED-AID https://studentaid.ed.gov/sa/types/loans
National Student Loan Database 1-800-4-FED-AID https://nslds.ed.gov/nslds/nslds_SA/
KHEAA 1-800-928-8926 http://www.kheaa.com