Unofficial Withdrawal
Upon receipt of an email from the Record’s Office that the student is no longer enrolled, or if the institution becomes aware that the student is no longer attending, and the student did not begin the official withdrawal process or provide notification of his or her intent to withdraw, the date of the institution’s determination that the student withdrew would be the date that Central Texas College becomes aware that the student ceased attendance. As soon as the Office of Financial Aid becomes aware the Office of Financial Aid gathers the student’s information to complete the Return of Title IV calculation to determine the amount of federal financial aid programs the student has earned. The last date the student attended a class is provided by faculty.
In order for the Office of Financial Aid to determine if there is a return of Title IV funds for the student, the Office of Financial Aid collects the student’s information for the payment period, which includes original direct costs at Central Texas College for the payment period from the Student Account, the date of determination of the withdrawal date from the Record’s Office, the federal financial aid programs that have been disbursed or could have been disbursed to the student from the Student Account and from the SIS. With these documents the Office of Financial Aid utilizes the return of Title IV funds online program provided by the SIS, to calculate and manage the return of Title IV funds for the student. This software is tested to ensure it is compliant with the Federal Financial Student Aid (FSA) Department of Education software. When a student withdraws after the 60% point of their payment period, they have earned 100% of their federal financial aid funds and there is no money to return because the student has earned 100% of the Title IV funds he or she was scheduled to receive during the payment period. If the student earns equal to or less than 60% the student is subject to the return of Title IV funds calculation. The Office of Financial Aid determines the amount the student earned, which is based on a prorata schedule based on what the student has earned at the time of withdrawal. The return of Title IV funds calculation determines the amount of federal financial aid the student earned, the amount the student did not earn, the amount the student might have to repay, the amount the school must return, if a student is owed a post-withdrawal disbursement, and if the student owes a repayment.
After completion of the calculation online the Office of Financial Aid is responsible for ensuring the proper amounts are returned to the appropriate Title IV programs in a timely manner. The Office of Financial Aid returns funds from SIS to COD (Common Origination and Disbursements) as soon as possible, but no later than 30 days after the date it determines that the student withdrew. All returns of federal student aid grants and Direct Loan funds previously disbursed are made through the G5 (Fiscal Reporting System) by the Accounting Office.
The Office of Financial Aid collaborates with the Business Office to not release a Title IV credit balance when a student withdraws until the Office of Financial Aid performs the Return of Title IV Funds calculation, the Central Texas College refund policy has been applied, and any Title IV credit balance is allocated to repay any grant overpayment owed by the student as a result of the current withdrawal. Central Texas College returns such funds to the Title IV grant account within 14 days of the date Central Texas College performs the Return of Title IV funds calculation. Central Texas College releases the remaining credit balance to the student, parent for a PLUS loan, or back to the Title IV loan debt with student’s authorization.
The Business Office will notify the student of his or her obligation to repay funds, tracks the repayment, whether a repayment agreement will be offered and monitored by Central Texas College as well as the 45 day timing responsibility for referring overpayment to Department of Education for any amount over $50. Acceptable methods of payment for paying funds under an agreement with Central Texas College to the Business Office would be in the form of cash, personal check, cashier’s check, money order or credit card through the Business Office.
Business Office places holds that will be placed on the student’s school records or account, and is authorized to release them once the student’s obligation has been satisfied.
The Office of Financial Aid will record the student’s obligation to repay an overpayment in NSLDS and will monitor, update and notify the student.
The Office of Financial Aid offers the student any earned post-withdrawal disbursement. Students are notified via email and responses are due within two weeks upon notification. If the student does not respond in the two-week time frame the Office of Financial Aid will return funds according to the return of Title IV funds results. If timing will not allow for a two-week response time frame from the student, the Business Office will make all attempts to contact the student as quickly as possible, including phone calls. Central Texas College complies with the post-withdrawal disbursement time frames and disburses any Title IV grant funds a student is due within 30 days of the date the school determined the student withdrew, and disburses any loan funds a student accepts within 180 days of that date.
The Satisfactory Academic Progress (SAP) policy is e-mailed to the student’s email account that is on file with Central Texas College with a letter of explanation regarding the student’s SAP status.
NOTE Federal, state and institutional rules and regulations regarding financial aid are subject to change.