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Refund and Repayment Policy for Financial Aid RecipientsFederal regulations require Blue Ridge Community College to have a written policy for the refund and repayment of federal aid received by students who withdraw during a term for which payment has been received. These policies are effective only if the student completely terminates enrollment (i.e., cancels his/her registration, withdraws, or is dismissed) or stops attending classes before completing more than 60 percent of the enrollment period. Refund PolicyThe amount of a refund of fees for students who withdraw will be calculated as outlined in the BRCC Catalog and Student Handbook. Repayment PolicyThe amount of Title IV aid that a student must repay is determined via the Federal Formula for Return of Title IV funds as specified in Section 484B of the Higher Education Act. This law also specifies the order of return of the Title IV funds to the programs from which they were awarded. A repayment may be required when cash has been disbursed to a student from financial aid funds in excess of the amount of aid the student earned during the term. The amount of Title IV aid earned is determined by multiplying the total Title IV aid (other than FWS) for which the student qualified by the percentage of time during the term that the student was enrolled. If less aid was disbursed than was earned, the student may receive a late disbursement for the difference. If more aid was disbursed than was earned, the amount of Title IV aid that must be returned (i.e., that was unearned) is determined by subtracting the earned amount from the amount actually disbursed. The responsibility for returning unearned aid is allocated between the College and the student according to the portion of disbursed aid that could have been used to cover College charges and the portion that could have been disbursed directly to the student once the College charges were covered. BRCC will distribute the unearned aid back to the Title IV programs as specified by law. The student will be billed for the amount the student owes to the Title IV programs and any amount due to the College resulting from the return of Title IV funds used to cover College charges. For example: Sallie received a Pell Grant in the amount of $1,875 for the 2001 fall semester. She registered for 13 credit hours, which cost $524.16 and purchased the necessary textbooks, which came to $310.75. Her total institutional charges for the semester are $834.91. On September 11, 2001 Sallie received her financial aid balance check in the amount of $1,040.09 that she can use for other related educational expenses throughout the semester. However, on October 19, 2001 Sallie' s work scheduled changed and she had to withdraw from all of her classes. Since Sallie has totally withdrawn from college the Financial Aid Office must determine if a return of Title IV funds is required. Financial Aid Office CalculationSallie received a total Pell Grant disbursement of $1,875 Sallie withdrew from CVCC after attending 61 out of the 112 days of the fall term. Sallie has earned 54.5% of the aid received (61/112) Amount of aid earned by Sallie is $1,021.88 ($1,875 X 54.5%) Amount of aid that must be returned is $853.12 ($1,875 - $1,021.88) Total Institutional Charges were $834.91 Percent of Financial Aid Unearned was 45.5% (100% - 54.5%) Total aid that must be returned to the Pell Grant Program from CVCC is $379.88 ($834.91 X 45.5%) Initial Amount of unearned aid that must be returned from Sallie is $473.24 ($853.12 - $379.88) Amount of financial aid that Sallie must pay back is $236.62 ($473.24 X 50%) Sallie will be notified within 30 days of her overpayment and will be instructed to contact the U.S. Department of Education Collections Department to arrange a suitable repayment agreement. Contact Information:Office of Student Financial Aid & Scholarships |
