Return of Title IV Funds
Return of Title IV Funds Policy
If you receive federal financial aid and stop attending or withdraw from all courses at or before 60 percent of the term is completed, you must repay all or some of the federal aid you received.
If you received a grade of F in all courses for any term, you must repay a portion of the federal aid you received. The amount you owe will be based on the last date you participated in a class, unless an instructor certifies that you were participating in at least one class after 60 percent of the term has passed.
How much do I have to return?
A federal formula dictates the amount of Title IV aid that both you and TSTC must return to the federal government.
Percent of aid to be returned = (Number of calendar days remaining in the term) / (Number of calendar days in the term)
Scheduled breaks of five consecutive days or more are not counted.
Pat is a full-time student attending TSTC in Waco for the fall semester. The semester is 103 calendar days long. Classes are scheduled for the entire semester. Pat withdraws from classes on the 54th day of the semester.
Pat’s financial aid and charges for the full term are:
The amount TSTC must return
- The total amount of aid that must be repaid is $2,372.86.
- Multiply the institutional charges of $2,100.00 by the unearned percentage of 47.6%, or $999.60.
- TSTC must return the lesser of these two, or $999.60. The remainder is Pat’s responsibility.
The amount Pat must return
- Pat repays TSTC for its portion of the financial aid1: $999.60.
- Pat repays the U.S. Department of Education2: $1,373.26.
- Total amount Pat must repay3: $2,372.86.
How funds are returned
Funds are returned to loan programs first and then grant programs.
1The College returns $999.60 to the Federal Direct Subsidized Stafford Loan program, creating a balance on Pat’s TSTC Waco account. Pat is responsible for paying this balance.
2The amount Pat must return is $2,372.86. Pat’s remaining loan for the semester is applied to this amount first. Because TSTC returned $999.60, Pat’s loan for the semester has been reduced to $2,135.40. Pat repays this amount to the U.S. Department of Education according to the terms of the Master Promissory Note.
3The remaining balance of -$762.14 is from the Federal Pell Grant program. The actual amount which Pat must return is reduced by 50% of the original grant amount ($1850 x 50% = $925). In this example, Pat would not owe any Federal Pell Grant program funds. If they had, TSTC in Waco would return this entire amount to the U.S. Department of Education, including the amount owed by the school and the amount (if any) owed by the student. Pat is then responsible for repaying this amount to the College.
We do not require the student to repay any funds to the Federal Pell Grant program and therefore do not report students who owe funds to NSLDS.
Student portion to be returned to federal financial aid programs:
- Student portion: $1,373.26.
- Loan returned during repayment: $2,135.40.
- The student still needs to return: $(762.14).
- 50% Title IV grant protection: – $925.
- Grant amount remaining: $(1,687.14).
This information is may change based on changes to federal law, regulation, or TSTC’s policies and procedures. If changes are made, you must abide by the new policy.